County lowers alcohol fees to help businesses
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By Dave Taylor
Hancock County is still fine-tuning its alcohol regulations and Monday’s decision to lower the fees imposed on businesses came as welcome news to at least one family.
During its regularly scheduled meeting Monday, the Hancock County Fiscal Court decided to lower the rate it will charge businesses for its regulatory fee, which is an optional charge that can be levied to cover costs related to alcohol regulation, which can be set at up to 5 percent of gross alcohol sales.
The county had set its rate at 5 percent in the ordinance it passed in December, but after a review, Judge-Executive Johnny “Chic” Roberts recommended lowering it due to a restriction that the revenues can only be used on alcohol-related expenses and to avoid unnecessary harm to business owners.
“You can only use this money on justifiable expenses,” Roberts said, “and if you go over that the money can’t just be returned to the state, it has to be returned quarterly to those businesses.”
The regulatory fee is above the license fee and comes from gross sales, but the money must be tracked and compared against expenses that can be directly attributed to the regulation of alcohol, like the alcoholic beverage control (ABC) administrator, and tracking the money means more paperwork and trouble for money the county might not get to keep.
“Our costs where they are, even with license fees, I think that it would be my recommendation that we lower that regulatory fee because I just don’t think we’re going to have that many expenses to justify that money,” he said. “I have no idea what 2 percent’s going to look like, 1 percent, 3 percent, no clue.”
The magistrates quickly agreed, saying that they’d rather err on the low side than to hurt businesses, but that the number would be revisited every year anyway. They voted to lower the rate to 1 percent.
Wayne and Billy Stephens, owners of Bill’s IGA in Hawesville, attended the meeting and approved of the change although they’d rather see the fee go away all together.
“A lot of the surrounding counties don’t have that fee, just because of the reasons you said,” Wayne Stephens said. “It’s a nightmare to justify the money and it’s a little hindrance to the businesses…”
Whereas a license fee is a set number each year, a percentage of gross sales could affect Bill’s and other businesses in bigger ways.
“Five percent was going to be quite a bit of money to me, I hope,” he said. “Any fee you put on me is a hindrance to my business.”
“I’ve already put out 30 grand on this,” he said. “And if I go the liquor route I’m talking hundreds of thousands I’m going to have to do because I have to put a separate entrance in and all this.”
Billy and Wayne said they’re hoping alcohol sales will improve their bottom end to keep their business afloat against chain competition nearby in Tell City.
“Whatever you could do to make it business friendly because we’re trying to figure some way out to keep this business in our family or maybe in a group of people,” Wayne Stephens said. “We don’t want to sell it out to let’s say low cost people that would come in and try to operate it with about five or six employees where we’ve got about 28 now.”
County Attorney Paul Madden, Jr. said the court appreciates Bill’s IGA because of the support it offers for programs and events throughout the county, so the court wants to help it succeed.
“If you’re making a lot of money that’ll be a good thing for all of us because your business has always given to our community, unlike so many others, so we appreciate you,” Madden said. “I do.”
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