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Published on Friday, January 13, 2017

Proposal to restore city liquor revenue introduced in House

The House version of AWC’s priority liquor bill, HB 1113, was introduced this week with a bipartisan mix of more than 35 sponsors.

Shortly after the privatization of liquor sales, the Legislature capped the amount of liquor profits distributed to cities and counties at $49.4 million per year. Prior to that action, liquor profits were distributed 50 percent to the state, 40 percent to cities, and 10 percent to counties. Since enacting the cap, the state has retained nearly $200 million in liquor profits that traditionally would have been distributed to cities and counties. Over the past several years, cities, counties, and others have sought to remove this cap and reinstate the traditional percentage based formula of liquor profit sharing.

HB 1113 gradually increases the distribution to cities and counties, ultimately reinstating the traditional formula. Under the proposal, cities and counties would receive $49.4 million annually plus:

  • $2.5 million in FY 2019;
  • $5 million in FY 2020;
  • $7.5 million in FY 2021;
  • $10 million in FY 2022;
  • $12.5 million in FY 2023; and
  • $15 million in FY 2024.

In state fiscal year 2025, the bill would reinstate the traditional percentage based formula of 50/40/10. The proposal would require 60 percent of any liquor profits distributed to cities and counties in excess of $49.4 million to be used for public safety.

Next week we expect the Senate to introduce its own proposal to increase city and county liquor revenue.

Categories: Budget & finance
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