Little impetus to alter liquor laws, for now

LIQUOR TAX REVENUES* Fiscal year 2008: $1.9 million* Fiscal year 2009: $1.9 million* Fiscal year 2010, as of March 31: $1.3 millionSource: Chattanooga

As a member of the Hamilton County Beer Board, Christopher Keene hears from people who want to sell wine and liquor at their businesses in unincorporated parts of the county.

He tells them the same thing: I can't do anything about it. It's illegal to sell liquor and wine - by the drink or by the bottle - outside city limits in the county.

"They say they just need to be equal with other people so they can stay in competition," Mr. Keene said.

Though the county is working on a budget with bare essentials and no frills because of declining tax revenues, county officials say there's been little discussion about making money from taxing liquor and wine.

And there is money to be made.

In fiscal year 2009, Chattanooga raked in nearly $2 million in liquor taxes, city records show.

County Attorney Rheubin Taylor and Carolyn Smith, assistant director of the Tennessee Alcoholic Beverage Commission, said the state Legislature would have to change the law to allow alcohol sales in Hamilton County. Ms. Smith said the Legislature could allow residents to vote on it, but that's not required.

Some private clubs and resorts can get special liquor licenses that allow them to sell liquor outside city lines, she said.

Chattanooga Councilman Jack Benson said one of the reasons the city annexed unincorporated sections of Lee Highway in Ooltewah was to allow businesses to sell liquor.

Knox County recently had the Legislature change its law to allow for liquor sales outside city limits, according to county attorney Joe Jarret.

"The commission was approached by local businesses and the local businesses in the unincorporated area had to compete with restaurants in the incorporated area, so there was a disparity in the commission rules," Mr. Jarret said.

State Rep. Gerald McCormick, R-Chattanooga, said no one from the county has asked him about changing the law.

"If we got a request from two-thirds of the County Commission to do so, we would do whatever is legislatively necessary," he said.

Commissioner Bill Hullander said increased access to alcohol could create problems and that changing the law is not a topic of conversation among commissioners.

"It's just me talking, but revenues are not everything," he said. "There's a lot of negatives that go along with it. I've had too many friends and homes (that have had problems with alcohol)."

Other commissioners said there's been no discussion, but Commissioner Warren Mackey predicted the law would change at some point.

"I don't think the initiative will come from the commission," he added.

County Mayor Claude Ramsey said there hasn't been any talk of changing the liquor laws in the county.

The lack of discussion is curious to Beer Board member Don Welch.

"I don't see how it would hurt anything," Mr. Welch said. "Everybody needs money. It's puzzling."

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