North Carolina Department of Revenue

IV. ALCOHOLIC BEVERAGE LICENSE AND EXCISE TAXES

G.S. 105-113.81A - Distribution of Wine Taxes: This statute was amended to increase the annual limit on the amount of wine excise tax revenue transferred to the Department of Agriculture and Consumer Services. The annual limit increased from $150,000 to $175,000, effective July 1, 1999. The amount distributed to the Department of Agriculture and Consumer Services is required to be allocated to the North Carolina Grape Growers Council to promote the North Carolina grape and wine industry.
(Effective July 1, 1999; HB 168, s. 13.7, S.L. 99-237.)

G.S. 18B-101(7a) - Historic ABC Establishment Defined: This new subdivision defines "historic ABC establishment" as one that meets all of the following criteria:

  • Is on the national register of historic places
  • Is a property designed to attract tourists and is located on a state route within 1.5 miles of a North Carolina scenic byway
  • Is located within 15 miles of a national scenic highway
  • Is located in a county in which the on-premises sale of malt beverages or unfortified wine is authorized in two or more cities in the county.

(Effective August 21, 1999; SB 607, S.L. 99-462.)

G.S. 18B-101(14b) - Tourism Resort Defined: This new subsection defines a "tourism resort." A tourism resort is any restaurant or lodging facility, public or private, that operates as a resort property offering food, beverage, lodging, and meeting facilities. It must also offer at least one golf course and at least two tennis courts along with any other recreational or sporting activities. A restaurant that features an equestrian center and at least two tennis courts, along with food, beverage, and other recreational and sporting activities also qualifies as a tourism resort. A public tourism resort is required to advertise at least quarterly in a regional or national travel or sports industry publication or in the State travel guide. Receipts from sporting and recreational activities must be at least 25% of total gross income. Receipts from the sale of alcoholic beverages may not exceed 50% of total gross receipts.
(Effective August 21, 1999; SB 17, S.L. 99-461.)

G.S. 18B-603(f) - New ABC Permits: This subsection was amended to add a tourism resort permit and a permit for an historic ABC establishment to the list of alcoholic beverage permits that can be issued by the ABC Commission without approval by referendum. Tourism resort and historic ABC establishment are defined in G.S. 18B-101. The issuance of these new permits will affect the distribution of the alcoholic beverage taxes on beer and wine to the counties and cities under G.S. 105-113.82. Only those cities and counties in which beer and wine sales have been approved by referendum or specific legislative action share in the distribution of the beer and wine excise taxes. If a qualifying tourism resort or an historic ABC establishment is located in an otherwise non-participating city or county, that city or county will now share in the distribution.
(Tourism Resort effective August 21, 1999; SB 17, S.L. 99-461; Historic ABC Establishment effective August 21, 1999; SB 607, S.L. 99-462.)

G.S. 18B-1006(n) - National Historic Landmark District: This new subsection was added to allow the sale of mixed beverages in hotels and restaurants located in a National Historical Landmark without approval at an election. The Landmark must also be located in a county that meets all of the following criteria:

  • Has approved the sale of malt beverages and unfortified wine, but not mixed beverages
  • Has at least one city that has approved ABC stores and the sale of mixed beverages
  • Has a population of at least 150,000.

This new permit will not affect the distribution made to cities and counties under G.S. 105-113.82 because that distribution is for beer and wine excise taxes. The taxes on mixed beverages are on liquor, and the taxes on liquor are distributed by the ABC boards on a different basis.
(Effective August 21, 1999; SB 607, S.L. 99-462.)