The issue was discussed Wednesday during a meeting of the Committee on Government Efficiency, a new group modeled after President Trump’s DOGE initiative.
CHARLOTTE, N.C. — A North Carolina legislative committee is examining the costs and benefits of privatizing the state’s liquor sales, a move that could reshape how alcohol is sold across the state.
Currently, liquor in North Carolina can only be purchased from ABC stores run by the state.
The issue was discussed on Wednesday during a meeting of the Committee on Government Efficiency, a new group modeled after President Trump’s DOGE initiative.
They heard from ABC Commission Chairman Hank Bauer, who expects to generate $1.8 billion in sales revenue this fiscal year, with $170 million going to local governments.
“I couldn’t find any state in the country that’s given this much money back off their spirit system,” he said.
Bauer added that the state-controlled program helps fund law enforcement efforts to fight underage drinking, and they would need to find another revenue source if this plan moves forward.
“They’re funding that now; if they were gone, then that’s going to have to go in the state budget to increase law enforcement, to stop alcohol violations,” Bauer said.
The state still has yet to pass a budget this year.
Rep. Keith Kidwell, the committee’s co-chair, was the biggest supporter of privatization. He said that to offset revenue lost to the state, lawmakers could consider increasing taxes slightly.
“The libertarian in me says the state does not belong with its hand in the alcohol sales business,” he said during the meeting. “I think the fear of ‘we lose all this revenue’ is probably unfounded, because I would guess you’re going to see more active sales. The net cost of the bottle would go down. Ergo, you could potentially raise the tax a little bit.”
Orlando Botero owns Must Be Nice in South End and has worked in the business in North Carolina for more than 20 years. He told WCNC Charlotte he is all for privatization, as it would bring more competition and lower prices.
“Believe it or not, we as a business pay $3.70 more per bottle than you would as a person going to buy one or two bottles at a time,” Botero said, “and we buy, you know, a couple hundred a week. We already operate on thin margins.”
The discussions remain in early stages, and no legislation has been filed yet. While this idea has been proposed before and not gotten much traction, Botero said he’s hopeful that this time will be different.
“We are a large part of the community here in South End and in Charlotte, overall, in the state,” he said. “I think it would give some confidence to potential small business owners who are thinking about getting into the industry, which impacts the overall economy of the city itself in a positive fashion. I mean, they pay taxes, they employ people.”
He’s also hopeful the state government will reconsider happy hour restrictions.
Contact Julie Kay at juliekay@wcnc.com and follow her on Facebook, X and Instagram.
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