Court sidesteps liquor dispute

Tuesday, April 26, 2005 | 11:09 a.m.

CARSON CITY -- The Nevada Supreme Court Monday refused to get involved in a battle between the beer wholesalers in Nevada and Albertson's and Safeway that operate liquor warehouses in Las Vegas.

The court refused to issue a writ sought by the Nevada Beer Wholesalers Association to close the two warehouses on grounds they are operating illegally.

The association said there is a law in Nevada that prohibits grocery stores from acting as wholesalers in storing and then transferring liquor to stores. And these two companies have transferred liquor to more than 100 stores in Nevada, the suit maintains.

Court records show Albertson's operates a liquor distribution warehouse (6065 Polaris Ave.) under the name of American Procurement & Logistics. Safeway Stores have a warehouse (3051 Marion Drive) that is operated by an affiliate named Weber Distributrion Co.

The beer wholesalers said the state Department of Taxation closed both warehouses on Feb. 17 this year and ordered Albertson's and Safeway not to ship or accept any liquor at these locations.

But the state Taxation Commission waived the enforcement and issued special permits to the two businssses.

The court said its denial of the writ sought by the beer wholesalers does not preclude them from raising the issue again if the Legislature does not change the law and the tax commission extends its temporary stay past the end of the Legislature.

Alfredo Alonso, lobbyist for the beer wholesalers, said today a compromise has been reached in the Legislature. He said Senate Bill 457 would allow the grocery chains to operate the warehouses but they would be able only to ship liquor in the local franchise area, not outside the boundaries.