Robert Sinquefield sells a bottle of tequila at Kiamie Package Store Monday. Photo Illustration by Thomas Graning
There is just about one liquor store in Oxford for every 1,000 permanent residents over age 18, according to census figures, and all 16 offer the same prices, hours and products, courtesy of the state’s liquor laws.
The census does not provide statistics for the percent of population between age 18 and the legal drinking age of 21. However, look at the statistics another way: there is one liquor store for every 430 households in Oxford based on the 6,885 households identified by the census. Households include single-family homes, apartments and condominiums.
Liquor store owners do not go through the city to open their businesses. Almost everything is regulated by the state office of Alcoholic Beverage Control, a division of the Department of Revenue. Cities and counties, however, do get permit fees rebated. According to Alcoholic Beverage Control reports in 2013, Oxford received $132,725 in permit fees, Lafayette County received $3,825 and Abbeville received $900.
Alcoholic Beverage Control also reported that Lafayette County, including Oxford and Abbeville, had $10,282,348 in sales in fiscal 2013 and that total collections for all categories was $11,642,969.
“The state controls pretty much everything when it comes to liquor sales,” said Rusty Hannah, an official with Alcoholic Beverage Control. “The state sets regulations and laws for the liquor stores. The only thing the cities can control are the zoning issues. They can’t even charge for a privilege license, although they do get half of the privilege fee.”
“For general business, there are no restrictions as to where liquor stores have to be,” city planner Andrea Correll said. “It’s the same for hotels. In zoning, if it’s under general business, it can be anything fitting that criteria.”
Under zoning laws, liquor stores can be located downtown, in shopping centers or even in neighborhood business areas. However, they cannot be located in professional business zones, such as next to the doctors’ offices on South Lamar Avenue.
“State law requires liquor stores to be 100 feet from churches, schools and daycares,” Hannah said. “They also have to be 400 feet from residential property.”
A.J. Kiamie, liquor store owner, said laws and regulations have changed substantially in the last few decades.
“Since my grandfather opened this store in 1966, the changes around this city and even the state regarding liquor stores are really noticeable,” Kiamie said. “Now, it seems like more and more are opening throughout Oxford, and the permits issued for liquor sales have dramatically increased.”
While Oxford only has 16 liquor stores, there have been 74 liquor permits issued in the city.
“There is no state law restricting the number of permits a city can have,” Hannah said. “If there is a town of 1,000 people, and they want 50 liquor store permits, they get those permits as long as they pay for them.”
It cost $1,850 for a liquor store permit in Mississippi. As long as the owner pays the fee and has a clean record, they are allowed to open a store.
“All liquor stores in the state are open from 10 a.m. Monday though 10 p.m. Saturday,” Kiamie said. “The Alcoholic Beverage Control regulates everything for us. We are not allowed to be open on Sundays or on Christmas Day. That goes for every store in the state.”
Liquor sales have provided enormous revenue for the state of Mississippi, and that has not gone unnoticed by Kiamie.
“Liquor stores in Mississippi brought in over $100 million in revenue,” Kiamie said, “Our prices are all the same, and the state makes a 27.5 percent margin off the top plus sales tax. It’s a great chance at revenue for a state that sometimes struggles financially.”
Total revenue increased 4.8 percent between fiscal 2012 and 2013 from $95,362,438 to $99,945,149, according to Alcoholic Beverage Control reports.
The reports indicate that for every 750 ml bottle of distilled spirits a retailer pays $13.81 to the distiller, $2.18 in taxes, a 49-cent freight charge and is allowed a mark-up of $3.38.
The state excise taxes are $2.50 a gallon for distilled spirits, $1 a gallon for sparking wine and champagne, 35 cents a gallon for wines 51 percent or more whose volume is based on the fermentation of vitas rotundifolia grapes and 35 cents a gallon on other wines.
Throughout the state, there are no chain liquor stores. Each owner can only have one liquor store, which is beneficial to small storeowners who compete against some of the bigger stores. Also, no store in the state receives a special volume discount. If a specific product is on sale, each store pays the same price for that product. This eliminates certain stores from gaining a competitive balance over another in the same area.
Kiamie’s on West Jackson Avenue store sells a variety of products, but he mentioned one in particular as being the most popular.
“Our biggest selling product is definitely wine,” Kiamie said. “Sixty-five to 70 percent of our sales are wine sales. Oxford sells more wine than any other city in the state.”
While liquor sales are mandated by the state, cities have control on beer sales.
“Local authority has control over beer sales,” Hannah said. “Cities can set up regulations on distances and sales for restaurants and gas stations on beer. Beer sales on Sundays are up to the city as well.”
Liquor stores can also sell their products cold, whereas selling beer cold is up to the individual city. Oxford started selling cold beer just last year.
