SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE S TATEMENT OF ESTIMATED FISCAL IMPACT WWW.RFA.SC.GOV • (803)734-3793 This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation. Page 1 of 2 H. 4000 Fiscal Impact Summary This bill authorizes the Department of Revenue (DOR) to issue a biennial permit or license to a nonprofit corporation that manages a performing arts and convention complex which authorizes the purchase and sale for on‑premises consumption of beer and wine or the purchase and sale for on‑premises consumption of alcoholic liquors by the drink. This bill will have no expenditure impact for DOR. The department indicates that it has processes in place to update its forms and website information and anticipates that any expenses can be managed with existing appropriations. DOR indicates that it will offer a Professional Sports Venue License (PSV) license authorizing the purchase and sale for on-premises consumption of beer, wine, and alcoholic liquors by the drink at qualifying performing arts and convention complexes. DOR will charge a nonrefundable filing fee of $500 for processing each application, $200 of which goes to SLED and $300 of which is credited to the General Fund. DOR will further charge $6,100 for the biennial PSV license. Of this amount, $100 is credited to SLED, and $6,000 is credited to the General Fund. This bill may result in an undetermined increase in General Fund revenue and Other Funds revenue of SLED due to the creation of a new PSV license authorizing the purchase and sale for on-premises consumption of beer, wine, and alcoholic liquors by the drink at a performing arts and convention complex. However, the Revenue and Fiscal Affairs Office (RFA) is unable to estimate the number of new licenses that will be issued pursuant to this bill. Therefore, the impact to General Fund revenue and to Other Funds revenue of SLED are undetermined and will depend upon the number of licenses issued. RFA anticipates that this bill will have a minimal impact on beer, wine, and liquor sales and resulting sales and alcohol tax revenues. Although we anticipate the provisions of this bill may cause a shift in the manner in which consumers purchase beer, wine, or alcoholic liquors, the provisions of the bill are not expected to result in a material expansion of beer, wine, or alcoholic liquor purchases. Bill Number: H. 4000 Introduced on Februar y 13, 2025 Subject: Alcohol Licensin g Requestor: House Judiciary RFA Analyst(s): Bryant Impact Date: April 8, 2025 __________________________________ Frank A. Rainwater, Executive Director DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT. Page 2 of 2 H. 4000 Explanation of Fiscal Impact Introduced on February 13, 2025 State Expenditure This bill authorizes DOR to issue a biennial permit or license to a nonprofit corporation that manages a performing arts and convention complex which authorizes the purchase and sale for on‑premises consumption of beer and wine or the purchase and sale for on‑premises consumption of alcoholic liquors by the drink. The bill defines a performing arts and convention complex as a performing arts and convention facility, along with its ancillary grounds and facilities, that is owned by a municipality; has performance hall seating of at least 1,600 seats and at least 12,000 square feet of meeting, exhibition, and convention space; and engages in tourism promotion. Department of Revenue. This bill will have no expenditure impact for DOR. The department indicates that it has processes in place to update its forms and website information and anticipates that any expenses can be managed with existing appropriations. State Revenue This bill authorizes DOR to issue a biennial permit or license to a nonprofit corporation that manages a performing arts and convention complex which authorizes the purchase and sale for on‑premises consumption of beer and wine or the purchase and sale for on‑premises consumption of alcoholic liquors by the drink. DOR indicates that it will offer a PSV license authorizing the purchase and sale for on-premises consumption of beer, wine, and alcoholic liquors by the drink at qualifying performing arts and convention complexes. DOR will charge a nonrefundable filing fee of $500 for processing each application, $200 of which goes to SLED and $300 of which is credited to the General Fund. DOR will further charge $6,100 for the biennial PSV license. Of this amount, $100 is credited to SLED, and $6,000 is credited to the General Fund. This bill may result in an undetermined increase in General Fund revenue and Other Funds revenue of SLED due to the creation of a new PSV license authorizing the purchase and sale for on-premises consumption of beer, wine, and alcoholic liquors by the drink at a performing arts and convention complex. However, RFA is unable to estimate the number of new licenses that will be issued pursuant to this bill. Therefore, the impact to General Fund revenue and to Other Funds revenue of SLED are undetermined and will depend upon the number of licenses issued. RFA anticipates that this bill will have a minimal impact on beer, wine, and liquor sales and resulting sales and alcohol tax revenues. Although we anticipate the provisions of this bill may cause a shift in the manner in which consumers purchase beer, wine, or alcoholic liquors, the provisions of the bill are not expected to result in a material expansion of beer, wine, or alcoholic liquor purchases. Local Expenditure and Local Revenue N/A