Virginia Gov. Bob McDonnell’s senior policy adviser on Thursday unveiled changes to the governor’s plan to privatize Virginia’s liquor stores that would scrap two fees and seemingly give small businesses a better shot at obtaining liquor licenses.
An annual wholesale license tax of 1 percent of gross receipts on distilled spirits and an optional 2.5 percent restaurant “convenience fee” would be eliminated under the updated proposal. The two fees were estimated to generate about $26.5 million in annual revenue for the state.
Another change, intended to put smaller businesses on a more level playing field with larger retailers, would allow stores with less than 3,000 square feet of retail space and a maximum of 50 employees statewide to compete with one another — rather than national chain stores — on bids for liquor licenses.
The original plan would shutter the state’s 332 Alcoholic Beverage Control outlets and auction off 1,000 retail liquor licenses — 600 for big-box retailers, 150 for beer, wine and package stores, and 250 for convenience and pharmacy retailers.
The third change offered Thursday would give the winning bidders with 50 or fewer employees — excluding the big box/grocery store group — the option of financing their bids over the course of three to five years.
