Governor McDonnell announces ABC privatization plan
By Kyle Maichle
A total of $450 million dollars in revenue to the Commonwealth of Virginia could be generated from selling off liquor stores and licenses held by the ABC. A total of 1,000 licenses would be auctioned off, but no business can hold more than twenty-five percent of the total licenses in one class. To make up lost revenue from privatizing the ABC, McDonnell will propose a four percent tax on mixed drinks in addition to taxes on bulk liquor and gross receipts.
The Governor's Commission on Government Reform is scheduled to vote on the proposal on October 4, 2010. If approved, the General Assembly would be called into special session to approve the proposal. The special session could held anytime from November 3 to November 25, 2010 according to the Governor.