State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_18B > GS_18B-805

§18B‑805.  Distribution of revenue.

(a)        Gross Receipts. –As used in this section, "gross receipts" means all revenue of alocal board, including proceeds from the sale of alcoholic beverages,investments, interest on deposits, and any other source.

(b)        PrimaryDistribution. – Before making any other distribution, a local board shall firstpay the following from its gross receipts:

(1)        The board shall paythe expenses, including salaries, of operating the local ABC system.

(2)        Each month the localboard shall pay to the Department of Revenue the taxes due the Department. Inaddition to the taxes levied under Chapter 105 of the General Statutes, thelocal board shall pay to the Department one‑half of both the mixedbeverages surcharge required by G.S. 18B‑804(b)(8) and the guest roomcabinet surcharge required by G.S. 18B‑804(b)(9).

(3)        Each month the localboard shall pay to the Department of Health and Human Services five percent(5%) of both the mixed beverages surcharge required by G.S. 18B‑804(b)(8)and the guest room cabinet surcharge required by G.S. 18B‑804(b)(9). TheDepartment of Health and Human Services shall spend those funds for thetreatment of alcoholism or substance abuse, or for research or education onalcohol or substance abuse.

(4)        Each month the localboard shall pay to the county commissioners of the county where the charge iscollected the proceeds from the bottle charge required by G.S. 18B‑804(b)(6),to be spent by the county commissioners for the purposes stated in subsection(h) of this section.

(c)        Other StatutoryDistributions. – After making the distributions required by subsection (b), alocal board shall make the following quarterly distributions from the remaininggross receipts:

(1)        Before making anyother distribution under this subsection, the local board shall set aside theclear proceeds of the three and one‑half percent (3 1/2%) markup providedfor in G.S. 18B‑804(b)(5) and the bottle charge provided for in G.S. 18B‑804(b)(6b),to be distributed as part of the remaining gross receipts under subsection (e)of this section.

(2)        The local boardshall spend for law enforcement an amount set by the board which shall be atleast five percent (5%) of the gross receipts remaining after the distributionrequired by subdivision (1). The local board may contract with the ALE Divisionto provide the law enforcement required by this subdivision. Notwithstandingthe provisions of any local act, this provision shall apply to all localboards.

(3)        The local boardshall spend, or pay to the county commissioners to spend, for the purposesstated in subsection (h), an amount set by the board which shall be at leastseven percent (7%) of the gross receipts remaining after the distributionrequired by subdivision (1). This provision shall not be applicable to a localboard which is subject to a local act setting a different distribution.

(d)        Working Capital. –After making the distributions provided for in subsections (b) and (c), thelocal board may set aside a portion of the remaining gross receipts, within thelimits set by the rules of the Commission, as cash to operate the ABC system.With the approval of the appointing authority for the board, the local boardmay also set aside a portion of the remaining gross receipts as a fund forspecific capital improvements.

(e)        OtherDistributions. – After making the distributions provided in subsections (b),(c), and (d), the local board shall pay each quarter the remaining grossreceipts to the general fund of the city or county for which the board is established,unless some other distribution or some other schedule is provided for by law.If the governing body of each city and county receiving revenue from an ABCsystem agrees, those governing bodies may alter at any time the distribution tobe made under this subsection or under any local act. Copies of the governingbody resolutions agreeing to a new distribution formula and a copy of theapproved new distribution formula shall be submitted to the Commission forreview and audit purposes. If any one of the governing bodies later withdrawsits consent to the change in distribution, profits shall be distributedaccording to the original formula, beginning with the next quarter.

(f)         Surcharge ProfitShared. – When, pursuant to G.S. 18B‑603(d1), spirituous liquor is boughtat a city ABC store by a mixed beverages permittee for premises located outsidethe city, the local board operating the store at which the sale is made shallretain seventy‑five percent (75%) of the local share of both the mixedbeverages surcharge required by G.S. 18B‑804(b)(8) and the guest roomcabinet surcharge required by G.S. 18B‑804(b)(9) and the remaining twenty‑fivepercent (25%) shall be divided equally among the local ABC boards for all othercities in the county that have authorized the sale of mixed beverages.

When, pursuant to G.S. 18B‑603(e),spirituous liquor is bought at a city ABC store by a mixed beverages permitteefor premises located at an airport outside the city, the local share of boththe mixed beverages surcharge required by G.S. 18B‑804(b)(8) and theguest room cabinet surcharge required by G.S. 18B‑804(b)(9) shall bedivided equally among the local ABC boards for all cities in the county thathave authorized the sale of mixed beverages.

(g)        QuarterlyDistributions. – When this section requires a distribution to be madequarterly, at least ninety percent (90%) of the estimated distribution shall bepaid to the recipient by the local board within 30 days of the end of thatquarter. Adjustments in the amount to be distributed resulting from the closingof the books and from audit shall be made with the next quarterly payment.

(h)        Expenditure ofAlcoholism Funds. – Funds distributed under subdivisions (b)(4) and (c)(3) ofthis section shall be spent for the treatment of alcoholism or substance abuse,or for research or education on alcohol or substance abuse. The minutes of theboard of county commissioners or local board spending funds allocated underthis subsection shall describe the activity for which the funds are to bespent. Any agency or person receiving funds from the county commissioners orlocal board under this subsection shall submit an annual report to the board ofcounty commissioners or local board from which funds were received, describinghow the funds were spent.

(i)         Calculation ofStatutory Distributions When Liquor Sold at Less Than Uniform Price. – If alocal board sells liquor at less than the uniform State price, distributionsrequired by subsections (b) and (c) shall be calculated as though the liquorwas sold at the uniform price. (1981, c. 412, s. 2; c. 747,s. 52; 1983, c. 713, ss. 102‑104; 1985 (Reg. Sess., 1986), c. 1014, s.116; 1991, c. 459, s. 3; c. 689, s. 306; 1991 (Reg. Sess., 1992), c. 920, s. 4;1993, c. 415, s. 27; 1997‑443, s. 11A.118(a); 1999‑462, s. 8.)