STATE ALCOHOL TAX INCREASES ~ Washington & Beyond

[Odyssey Spirits]

Washington law makers are quietly working to pass legislation that will increase & possibly removing class H pricing for bars and restaurants.

What does this mean? Well, it means that restaurants/bars may end up paying the same price for booze as Joe Shmoe on the street and then they have to tax poor old Joe to sell the booze to him (or in other words, double tax the product, giving bars a distinct disadvantage by forcing them to raise prices to meet COS percentages).

Presently the Class H discount is set at being not less than 15 percent to not more than ten percent and is proposed to change to maximum of 10%.

Washington Bill SB6119 Page

The feds, other states & even city municipalities are also looking at alcohol taxes as a means to patching their bloated budgets (rather than cutting back during hard times). Here's more information on what is happening around the country (which affects all of us who desire to do business outside Washington).

Illinois, California, New York, Kentucky, Arkansas & now Washington are proposing to raise alcohol taxes with the misguided idea that they will thus gain "free cash" to spend on new programs that do nothing to generate more state revenue. The actually net effect of the raises is never discussed ~ which will actually result in massive lost revenue due to lost jobs (& thus more people claiming unemployment & requesting state services), lost business income taxes & license revenue (due to restaurants, bars & hotels going out of business).

JANUARY 17, 2009 ~ Officials Tempted By Alcohol Taxes

APRIL 1, 2009 ~ States Serving Up Alcohol Taxes to Patch Budgets

APRIL 6, 2009 ~ Indiana Alcohol Tax Could Double

Here's an example of a city looking to raise alcohol taxes: Mayors: we need cash from doubling alcohol taxes

Profitability for both the hospitality & tourism industries are paid for in a big way by alcohol sales. Not only will this affect the sales of alcohol it will also cost the state and nation in additional unemployment as restaurants, hotels and bars go out of business because there will be even more incentive for consumers to eat and drink at home.

What happens when a state increases the alcohol tax by 300% as Maryland did? http://www.baltimoresun.com/news/opinion/l...0,6612509.story

WHAT CAN WE DO? CONTACT OUR LEGISLATORS ARMED WITH THE FACTS:

Washington Restaurant Association page set up to oppose this bill located @: http://www.wrahome.com/displaycommon.cfm?a...barticlenbr=356

Distilled Spirits Council of the United States official website info for educating state legislators on the harmful effects of "hospitality taxes" such as increases in alcohol taxes: http://www.stophospitalitytaxes.com/

California hospitality industry working to block a 640% increase in tax on alcohol! ~ http://capwiz.com/sinkthedrinktax/home/