The League of Municipalities warned the city to expect only about one-third of their usual distribution from alcohol sales, Archdale Finance Director Lori Nurse told the NEWS. City Council approved a budget amendment at their August meeting to reduce revenue from beer and wine taxes from $44,500 to just $14,500.
“It sure does seem like the state just loves to take our money,” said Councilman Eddie Causey.
To balance the city’s budget, playground equipment and maintenance items were postponed.
Excise taxes on beer rose from 53.17 cents to 61.71 cents per gallon and excise taxes on unfortified wine rose from 21 cents to 26.34 cents per liter.
Income from alcohol taxes is collected by the state, which keeps more than two-thirds of it for the general fund. The rest, about 28 to 29 percent in past years, is distributed in May to the cities and counties, with small amounts also going to ABC distribution centers, law enforcement and related programs.
Only the governments that allow alcohol sales get a distribution. The amount has nothing to do with sales in that area, but is based on population.
Archdale, whose citizens voted to allow beer and unfortified wine sales in 2005, does not receive revenue from liquor or fortified wine.
The Archdale Police Department does not directly receive income from alcohol sales. However, Police Chief Darrell Gibbs has not seen any rise in alcohol-related crime since 2005, which he attributes at least partly to the fact that there are no bars within the city limits.
Four to five officers participated in operation “Booze It & Lose It” during the Labor Day weekend. Gibbs said the manpower has not changed, because Archdale Police already participated in major holiday operations with other law enforcement agencies.
Trinity, a “dry” city, does not receive income from the alcohol excise taxes. Randolph County, also “dry,” receives a very small portion of the bottle tax — less than 1 percent — that is slated for alcohol rehabilitation programs.
Some alcohol sales outside the cities are permitted as exceptions, such as Zimmerman Vineyards, Colonial Country Club and Holly Ridge Golf Links. While the alcohol tax on those sales does not contribute any local revenue, the county does get its portion of the sales tax, explained Will Massie, Randolph County finance officer.
Even the taxes are taxed.
Sales tax throughout North Carolina went up 1 percent on non-food items this month, to 7.75 percent in most counties, including Guilford and Randolph. While Trinity and Archdale also receive a portion of sales tax, including on alcohol, the state plans to keep the extra percent.

