ABC revenues grew by 4.4 percent in 2010
Profits and tax revenues at state-run liquor stores grew by 4.4 percent in fiscal year 2010 over fiscal year 2009, and total $258.6 million, according to a spokesman for the Virginia Department of Alcoholic Beverage Control.
Gov. Bob McDonnell (R) has promised his plan for privatizing state-run liquor stores, scheduled to be unveiled Wednesday, will fully replace the annual revenue Virginia now receives from the sale of hard liquor.
But just how much does Virginia get from its ABC stores? As discussions have unfolded on the topic over the summer, the most cited numbers have been from fiscal year 2009, which ended June 30, 2009 and have been the most current numbers available.
In 2009, Virginia received $109.6 million in excise taxes on liquor, $26.2 million in sales taxes and $111.8 million in profits from ABC stores, for a total of $247.6 million.
But fiscal year 2010 ended June 30 and sales numbers for the year are now available, according to an ABC spokesman. If legislators choose to look at the more recent numbers, McDonnell's plan will have to bring in even more revenue than has been widely discussed if it is to match ABC's profitability.
For fiscal 2010, ABC stores brought in $111.2 million in excise taxes, $26.9 million in sales taxes and $120.5 million in profits, for a total of $258.6 million.
That means ABC's profits, excise and sales taxes grew at a time when other forms of tax revenue have been declining due the economic downturn.
Watch for legislators to ask McDonnell to show that his plan will not just replace ABC's current revenues but post growth numbers in future years consistent with ABC's likely growth.
September 7, 2010; 10:35 AM ET
Categories: Liquor privatization , Robert F. McDonnell , Rosalind Helderman
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