SIOUX FALLS, S.D. (AP) - A Sioux Falls liquor store will no longer offer its longtime discount programs after the state determined it violates liquor regulations, an issue that other businesses may be grappling with under the unclear rules.
JJ’s Wine, Spirits & Cigars owner Tom Slattery told the Argus Leader that he’s shelving the store’s rewards and discount programs after receiving a letter Tuesday from the South Dakota Department of Revenue. The department received a complaint about Slattery’s discount programs and determined they violated the state’s liquor rules, he said.
The agency confirmed that it sent a notice to Slattery after receiving a complaint, but didn’t elaborate further on the decision.
Slattery said the state took him by surprise because he got the department’s blessing when first implementing the programs a decade ago.
The regulation at issue is one limiting inducement, or in this case, the offering of something of monetary value to persuade or influence the purchase of alcohol, according to Slattery.
The department objected to JJ’s Wine, Spirits & Cigars offering quantity discounts on mix-and-match items as well as a rewards program that accumulates points for members based on purchases, he said.
“We’re not the only ones that do tiered discounts either,” said Slattery, who plans to seek legislative relief. “Everyone in town does tiered discounts.”
The scope of the state’s interpretation remains unclear, but JJ’s might not be the only Sioux Falls retailer contacted by the revenue department. Booze Boys Discount Liquor also informed customers on Tuesday that the store was notified it could no longer offer a discount deal on wine.
Robert Wentz, the store’s owner, wasn’t immediately available to comment to the newspaper.
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Information from: Argus Leader, http://www.argusleader.com
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