The election commission has received a petition requesting a referendum on whether to allow grocery stores to sell wine inside the Smithville city limits.
According to Administrator of Elections Dennis Stanley, the petition has been verified to have the number of signatures required to place the referendum on the Nov. 8 ballot, subject to approval by the election commission.
Stanley said a referendum on wine sales inside grocery stores may only be called by petition of registered voters in jurisdictions which have held and passed either a referendum to authorize retail package stores or a referendum to authorize the sale of alcoholic beverages for consumption on the premises.
Since voters in the city approved retail liquor stores two years ago, the city is eligible for a referendum on wine at retail food stores. The petition required signatures of at least 10 percent of the registered voters casting ballots in the last city election. The petition had to be filed within a 75-day period before the November election to qualify, and it was.
If the referendum makes the ballot it will be one of two liquor referendum to be decided in November. A petition calling for a vote on allowing alcoholic beverages to be sold for consumption on the premises of Smithville businesses has been returned as well. Stanley said there were enough names to get both matters on the ballot.
Under state law, a retail food store is defined as a business that makes at least 20 percent of its income from food sales and has at least 1,200 square feet of floor space. Food sales must be the type of transaction taxed at the state rate of five percent state rate, as opposed to the higher rate of prepared food. Most convenience stores and gas stations will not qualify to sell wine under these rules.
If voters approve the measure, licenses will be issued by the Tennessee Alcoholic Beverage Commission, and all applicants must obtain a certificate from the city verifying that a background check has been performed, and that the applicant has not been convicted of a felony in the previous ten years.
Applicants are not required to own the store they apply for. This allows those with franchise or management agreements to apply. Cities may not limit the number of retail food store wine licenses to be issued in their jurisdiction, nor require that applicants reside in the city.
Grocery stores located within 500 feet of package stores may not obtain licenses to sell wine until July 1, 2017, unless the package store owner provides written permission to the commission. Any package store owner who refuses such permission cannot sell those additional items permitted by the law until such time as the grocery store obtains permission to sell wine.
