Virginia Liquor Stores to Be Privatized?

Virginia liquor prices and sales are currently under the control of the state under the auspices of the Alcoholic Beverage Control Board. Governor-elect Bob McDonnell has proposed that Virginia liquor stores be privatized and the funds generated from business licenses, sales receipts, property taxes and such be used to fund road improvements in the Commonwealth. On the surface this sounds like a great plan to deal with the problem of funding road improvements by using Virginia liquor sales revenue.

However, this plan to use Virginia liquor sales revenue it is not without difficulty. The Washington Post reports that, "Much of that money represents existing state revenue that currently pays for other services. For example, privatization of the liquor stores would generate at least $500 million in one-time payments to the state, plus income and property taxes over time, according to McDonnell. But about $100 million in annual earnings generated by the stores that goes to the state's general fund would be lost."

It is likely that if the Governor's proposal gains any traction with respect to Virginia liquor sales, it will be the subject of significant debate amongst Virginia legislators. It doesn't appear that anything is imminent that would change the present system of Virginia liquor sales.

Numerous issues would have to be addressed concerning the sale of Virginia liquor stores, the issuance of business permits, opening and closing times, likely a bevy of new laws concerning Virginia liquor sales and a host of other issues that might arise because of the potential for unintended consequences that always follow significant change.

Long-time Virginia residents are accustomed to the present system of Virginia liquor sales and it is likely that many will object to any change. Currently, the state possesses a monopoly there is no competition in Virginia liquor prices and in the sales arena. The current price for one's favorite Virginia liquor beverage is freely available on the internet.