What is the Liquor by the Drink Tax and how much have South Carolinians contributed?

A night out at a local bar or enjoying a drink with friends at an event comes at an additional cost for South Carolina business owners. The Liquor by the Drink Tax is collected monthly for alcohol-serving businesses in the Palmetto State.

Every beer, cocktail, and glass of wine sold and consumed at an event or business licensed to sell alcohol receives a five percent tax known as the Liquor by the Drink Tax; in addition to the sales, local option, and hospitality tax businesses are required to pay.

Over the past five years, the South Carolina Department of Revenue (SCDOR) has amassed over $198 million through these alcohol-based taxes and contributed $21.7 million to the state's general fund.

Here is more on the Liquor by the Drink Tax and a breakdown of how these funds are distributed throughout South Carolina:

What is the Liquor by the Drink Tax in South Carolina?

According to SCDOR, the Liquor by the Drink Tax only applies to alcoholic beverages consumed on-site at a business permitted to sell such drinks.

This specific tax comes at a five percent rate, in addition to the sales tax, local option tax, and hospitality tax businesses are required to pay.

According to the Department of SCDOR, the total gross amount of these collected funds is required to be paid and deposited into the general fund of the state of South Carolina, of which 11 percent goes toward counties in South Carolina, through the State Treasurer's Office .

According to the SCDOR website, a liquor by the Drink Excise Tax Report must be filed within 20 days of the close of each month.

This tax law does not apply to non-profit organizations granted a temporary permit to allow for the possession, sale, and consumption of alcohol.

Related News: A Greenville bar is changing after liquor liability insurance costs strain business

How much was made over last five years because of Liquor by the Drink Tax in SC?

According to information provided by SCDOR, 11 percent of the revenue generated by the Liquor by the Drink Tax must be deposited with the South Carolina State Treasurer, and the dollars collected must be credited to an account separate from the state's general funds.

Here is a breakdown of the funds collected through the Liquor by the Drink Tax in South Carolina each fiscal year since July 2020:

Fiscal Year 2020: $25.6 million was collected in Liquor by the Drink Taxes, $2.8 million was transferred to the State Treasurer's Office.

FY 2021: $28.0 million was collected in Liquor by the Drink Taxes, $3.4 million was transferred to the State Treasurer's Office.

FY 2022: $38.7 million was collected in Liquor by the Drink Taxes, $4.8 million was transferred to the State Treasurer's Office.

FY 2023: $42.5 million was collected in Liquor by the Drink Taxes, $5.2 million was transferred to the State Treasurer's Office.

FY 2024: $44.8 million was collected in Liquor by the Drink Taxes, $5.5 million was transferred to the State Treasurer's Office.

Related News: Entertainment venues face rising insurance costs, forcing some to close. More could follow.

– A.J. Jackson covers the food & dining scene, along with arts, entertainment and downtown culture for The Greenville News. Contact him by email at ajackson@gannett.com, and follow him on X (formally Twitter) @ajhappened. This coverage is only possible with support from our readers. Sign up today for a digital subscription .

This article originally appeared on Greenville News: What is the Liquor by the Drink Tax and how much have South Carolinians contributed?