Chamber Concerned About Sunday Liquor Sales

Fayetteville Retailers Say No Change In Business Yet

Steve Clark, Fayetteville Chamber of Commerce president, said Sunday liquor sales in Springdale could put Fayetteville businesses at a competitive disadvantage.

Voters in Springdale and Tontitown last year approved Sunday alcohol sales at liquor and convenience stores.

Before November, residents of Northwest Arkansas had to travel to Missouri or Oklahoma to buy beer, wine or liquor on Sunday.

“We would hope people would want to play on an even playing field,” Clark said. “We have a number of small businesses here that own liquor stores, and we don’t want to see them at a competitive disadvantage.”

Jim Phillips, president of the Springdale Liquor Association, said Sunday sales will have little, if any, impact on tax revenue in Fayetteville.

“From a business standpoint, Fayetteville doesn’t have much to gain except the convenience of having something nearby,” he said. “At least this way, it’s still local in nature and they’re not driving to Missouri. I don’t think Fayetteville merchants will notice any change in sales to speak of.”

Phillips owns the majority of the liquor stores in Springdale.

Liquor retailers in Fayetteville said they haven’t noticed a dent in business since Sunday alcohol sales started Nov. 25, 2012.

Daniel Field, an employee with Liquor Mart on North College Avenue, said most customers stock up on alcohol before Sunday.

“It’s such a distance to go to Springdale,” he said. “I think six days a week is pretty sufficient.”

Sherri Brandon, manager of Midway Liquor on Rolling Hills Drive, said selling alcohol on Sunday could “water down business.”

“I think it’s going to happen eventually, but personally I’d rather not have to open on Sunday,” she said.

Julie Sill, owner of Hog Haus Brewing Co. on Dickson Street, said she would be against Sunday liquor sales in Fayetteville because it would hurt her business. Sill said customers flock to her restaurant on Sunday to purchase “growlers,” which are half-gallon jugs of beer purchased to go.

Rick Crisman, deputy director of education for the Alcoholic Beverage Control Board, said no one has petitioned for Sunday liquor sales in Fayetteville. To put the issue on the city ballot, state law requires a petition with signatures from 15 percent of those who voted in the last gubernatorial race. In Fayetteville, that would be 2,512 signatures. The Springdale petition required 1,558 signatures.

Phillips said the petition drive for Sunday liquor sales took about six months.

“It was harder to get signatures than I thought,” he said. “I think the primary reason people were against it was for religious reasons. Secondly, I think other people just like thinking that things are closed on Sunday.”

Benton County voters on Nov. 6 approved the retail sale of alcohol. The measure doesn’t allow alcohol sales on Sunday.

“Right now, we’re getting flooded with applications in Benton County,” Crisman said. “We’ve had about 60 applications, and we’re trying to work them all.”

Previously, alcohol was only served in private clubs in Benton County. Those clubs were required to buy alcohol from Arkansas liquor stores and many shopped in Springdale.

Large liquor stores catering to Benton County residents sit near the stateline and the county line. Springdale receives sales taxes from purchases of alcohol in Springdale consumed in Benton County.

“We knew the likelihood of Benton County going wet was pretty real,” Phillips said. “We knew that Madison County could also go wet. My motivation was to keep tax dollars in Benton County. If the stores were open on Sunday, the taxes would stay in Benton County and Springdale.”

John Theis, assistant revenue commissioner for the Arkansas Department of Finance, said customers who buy alcohol at liquor or convenience stores pay a 6 percent state sales tax and a local sales tax, which is 2 percent in Fayetteville and Springdale and 1.25 percent in Washington County. There’s also a 3 percent excise tax on “hard liquor” and wine, he said and a 1 percent tax on beer.

“The local taxes go back to the city and the county taxes go back to the county or can be split between the cities,” Theis said. “The state sales tax is retained by the state and the excise tax is also retained by the state.”

Fayetteville Finance Director Paul Becker said he doesn’t keep track of the financial impact of alcohol sales in Fayetteville.

Phillips compared the Sunday prohibition of selling alcohol to Blue Laws.

The Blue Laws prohibited the sale of many items, including clothing, housewares, building materials, radios and televisions on Sunday, according to Arkansas Act 135 of 1965. The state Supreme Court struck down the law in 1982.

By The Numbers

Arkansas Tax Collections From Alcohol Sales In 2012

1 Percent Beer Excise Tax — $3.27 million

3 Percent Liquor Excise Tax — $7.21 million

Mixed Drink Tax — $7.56 million

Additional 4 percent mixed drink tax — $2.31 million

Source: Arkansas Department Of Finance And Administration

Phillips said Springdale liquor stores don’t stay open Sunday as late as the law allows.

“We close early because we don’t think the business is adequate to justify staying open,” he said. “On the other hand, you have convenience stores that could benefit because they’re open 24 hours a day, and they can sell the whole time.”

The sale of alcohol on Sunday is not widespread across the state, according to Crisman.

Springdale is the largest city with Sunday retail sales. Before that, it was Eureka Springs. Others towns that permit Sunday alcohol sales include Altus, Pyatt and Norfork, along with a couple small north-central Arkansas communities.

Convenience stores in Washington County, including Fayetteville, began selling beer and wine for the first time last year.

Fayetteville Police Sgt. Craig Stout said he doesn’t see any pros or cons to legalizing Sunday alcohol sales in Fayetteville.

“The only difference is that you can’t physically go to a store and buy it,” he said. “You can still go to any bar or restaurant you want to. From our standpoint, we enforce the laws of Arkansas and the city of Fayetteville. If Fayetteville citizens want to have Sunday alcohol sales, then that’s what we’ll do.”

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