Recognizing that Michigan is very much a destination state, the state’s Liquor Control Commission engages in revenue sharing to local communities to support tourism, and they report today that those dollars totaled more than $67-million in Fiscal Year 2019.
The Michigan Liquor Control Commission (MLCC) made the announcement today that over the course of fiscal year 2019, more than $67 million in revenue sharing ended up being disptached back to local communities to support the state’s tourism and convention business, as well as local efforts toward enforcement of the Liquor Control Code.
MLCC Chair Pat Gagliardi says, “As a destination state, Michigan’s hospitality industry is a major sector of our economy and we’re pleased to support it from revenue collected on the sale of spirits,” adding, “Along with that, we value our partnership with local law enforcement agencies across the state and their policing efforts, especially enforcement of the Liquor Code to protect public health and safety.”
By law, the MLCC allocates 4-percent of base price spirits to the Convention Facility Development Fund to support promotion of tourism and convention business and acquisition of convention facilities. That monthly disbursement to counties is proportionate, based on liquor sales by county. In Fiscal Year 2019, the MLCC designated a total of $60.3 million. That was an increase from $57.2 million dispersed in Fiscal Year 2018.
In addition, MLCC dispersed more than $7.6 million in its April-June 2020 Law Grant Payment to 1,560 municipalities in all five MLCC districts (Escanaba, Gaylord, Grand Rapids, Lansing and Southfield).
As prescribed by law, MLCC pays 55-percent of its retailer’s license fees and license renewal fees on a quarterly basis to counties, cities, villages or townships in which a full-time police department or a full-time ordinance enforcement department is maintained or credited to the sheriff’s department of the county in which the licensed premises are located for the specific purpose of enforcing the Liquor Control Code and Administrative Rules. The MLCC dispersed $7.4 million for the similar timeframe for Fiscal Year 2018.
Liquor Control oversees the regulation of more than 18,000 retail liquor licensees statewide, including stores, restaurants, hotels, bars and clubs.
In Fiscal Year 2019, the MLCC transferred $248 million to the State’s General Fund, an increase of $17.2 million over the previous fiscal year for appropriation by the Michigan Legislature to support a wide range of state programs. Over the last decade, the MLCC has transferred $1.9 billion to the State’s General Fund.
By law, the Commission is the sole wholesaler of all spirit products in the state — purchasing those products from suppliers and selling them to retailers. All spirit products are marked up 65-percent on the price paid by the Commission. All licensees receive a 17-percent discount off that marked-up price; while on-premises licensees receive a 23-percent discount for a year.
