Proposed New North Carolina Law Would Modify Annual Permit Registration Fees for Beer and Wine

Williams Mullen
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North Carolina Senate Bill 833 proposes to reduce the annual registration fees paid by persons holding malt beverage, fortified wine, and unfortified wine permits in North Carolina.

Currently, these beer and wine permit holders pay an annual registration fee of $400 for each beer or wine permit held.  The new legislation proposes to reduce this amount to:

  • $100 for permit holders with net profits for sales under the permit of less than $2,500 for the previous year;
  • $200 for permit holders with net profits for sales under the permit between $2,500 - $4,999 for the previous year;
  • 400 for permit holders with net profits for sales under the permit of $5,000 or more for the previous year.

While this proposes to lessen the fee burden on smaller retail permittees, there are concerns that the proposed reduction is unenforceable, as the legislation does not provide a means for the North Carolina ABC Commission to request and review net profits.  Further, the language of the bill is unclear whether “sales under the permits” refers to alcohol sales only, as is likely intended.

Senate Bill 833 is currently before the Senate Commerce Committee.  If passed by the legislature, the bill would be effective for the annual permit registration year beginning 1 May 2017.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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