Posted on 08/31/2009 8:46:30 AM PDT by 1rudeboy
Illinois liquor stores are bracing for a drop in sales after a tax hike takes effect Tuesday.
“Everybody is upset but there’s nothing we can do,” said Bob Patel, manager of North Belt West Liquor Store in Belleville.
The tax increase is expected to raise an additional $109 million a year for a total of $267 million, up from $158 million last year, according to the Department of Revenue.
The tax revenue will help pay for Illinois’ $31 billion capital works plan for road construction, school renovations and bridge repair.
Starting Tuesday, the taxes will go from 90 cents to $1.71 on a fifth of liquor, from 15 to 28 cents on a bottle of wine and from 10 cents to 13 cents on a six-pack of beer, according to the Illinois Department of Revenue.
The excise tax is paid by distributors, which then pass on the cost to liquor stores, restaurants and bars. Liquor store owners and managers said they expect the tax hike will result in an average increase of $1 to $3 per bottle, or about a 15 percent increase, depending on the size.
George Randall, owner of Randall’s Wines and Spirits, said he expects his Fairview Heights location will be slammed this weekend with customers looking to stock up before the tax increase.
But after that, he’s worried about how the higher prices will hurt business and whether he’ll have to lay off workers, find a cheaper location or work out more affordable rent with his landlord.
Randall does expect to see a boost in sales at his company’s St. Louis location, as Illinois residents buy more booze in Missouri.
“The state hasn't seen a liquor tax increase this big in a long time, and it's coming at a time when people have less to spend,” Randall said.
Randall has already moved his online wine and spirits retail business, InternetWines.com, from Illinois to Missouri in anticipation of the tax increase. Combined with his two stores, Randall expects revenue of $10 million this year.
Scott Logan, manager of Corral Liquors in Granite City, said he’s concerned about the tax hike driving away business. He also expressed resigned acceptance.
“You can bitch all day, but nothing’s going to change it,” he said. “It’s the state’s decision.”
One day to go.
They did the same in Massholechusetts. New Hampshire LOVES it!
Taxing booze to pay for roads. But remember, don’t drink and drive!
Hmm.
And here I thought Barry's stimulus was going to pay for this stuff...
I might start driving to Wisconsin (or Indiana, when I’m down that way) for booze. What can possibly go wrong?
Sure, tax the good Kentucky bourbon, one of the last things still made in America.
I still curse George Ryan for hiking the beer tax 10 years ago.
Massachusetts just added alcohol to the increased sales tax....such taht we now pay a sales tax on the excise taxes on alcohol......a tax on a tax.
Glad I moved to within 10 miles of New hampshire...
Revenuers.
Again.
I have known folks in my life to took up bathtub gin, homemade brew and fruit wines. It was a hobby for them. Never did care for the results much, but hard cider is a surprise.
Gee, a quick check shows that Granite City has sent a Dem to Congress and that their IL General Assembly Rep is also, drum roll please, a DEM.
Idiot.
Bourbon List Ping.
Liquor stores is Wisconsin and Indiana will boom.
This must be the trickle down the drain stimulus plan...
Bumper sticker of the day!
This attitude,leads to waking up one morning in a dictatorship......
Stand up people.
I was wondering if that guy just runs a little shop with a regular (and alcoholic) clientele: if he's only selling jugs of wine, 40's, and lottery tickets he might think his business will not suffer.
Just saw a report on this on the ABC local news. Also the new taxes on things like candy and energy drinks. They interviewed several Chicago residents and they were all angered by these new taxes. The politicians have made a mistake this time. Those same Chicago voters probably applaud the soak the rich taxes like the income tax. Sales taxes hit everyone. They ain’t likin’ it.
Liquor stores in Kenosha, Wi and Gary, Indiana can expect some bumper profits
Right those stores IN OTHER STATES prosper. The poor bastards that try to operate in Illinois or MA get screwed.
Keep voting in Dems, folks!
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