Towson Liquor Stores Brace for Tax Increase
A sales tax hike on alcoholic beverages takes effect Friday.
If you're planning to stock up on adult beverages for your Fourth of July party on Monday, you might want to do it by Thursday.
On Friday, the alcohol tax hike approved by the Maryland General Assembly goes into effect, raising the sales tax on alcohol from 6 percent to 9 percent.
At Wells Discount Liquors on York Road, managing partner Mike Hyatt said he's tried to educate his customers about the tax hike as it draws near, with messages on mailing lists and the store's marquee.
"A lot of people are stocking up, not as many as I thought would happen, but I think as it grows closer ... I think that the stores are going to see more action." Hyatt said.
Hyatt, who went to Annapolis to testify against the bill, said the tax increase is much less damaging to retailers than the "dime a drink" excise tax in the original bill. That would have directly raised the excise tax—and the sticker price—for alcoholic beverages. The sales tax increase translates to roughly a nickel more per drink.
Doug Marcus, owner of Towson Wines and Spirits, said he's fine with the new tax ("I just want to know where the money goes," Marcus said) and doesn't expect to lose much business over what he said amounts to a 25-cent price increase for the average customer. Instead, he's ramping up his discounts and posts on his Twitter and Facebook pages.
"It's all I can do," he said. "I'm trying to make it as painless as possible."
Jeff Bartlett, a spokesman for Total Wine and More, owners of Beltway Fine Wine, said the store is putting up signs to let customers know about the tax increase, but they don't plan to have any sales.
State analysts expect the tax hike to raise $84.8 million in the 2012 fiscal year alone, according to a fiscal note on the bill. Much of that money in the first year will go to Prince George's County and Baltimore City schools, with some money set aside for health care programs for the disabled. The latter had been trumpeted as the original impetus behind the bill.
Vincent DeMarco, president of the Maryland Citizens' Health Initiative, which lobbied hard for the bill, said he was "ecstatic" with what the group was able to accomplish, even it it doesn't accomplish all that the group was shooting for. He said other states may use the bill as a model.
"It will save many lives by reducing underage drinking and alcohol abuse and it's great that the governor stood up to the alcohol lobby and got it passed," DeMarco said.
He said the group will work with legislators to get future revenue from the tax increase directed exclusively toward health care programs.
"We're fine with money going to education the first year, but that's just the first year," he said. "The needs are much greater than even the money we even initially proposed to raise."
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Towson Wines & Spirits
6 W Pennsylvania Ave, Towson, MD -
Beltway Fine Wine
8727 Loch Raven Blvd, Towson, MD
amdactivist
7:11 am on Wednesday, June 29, 2011
I'd love to know how these liquor store owners voted!!!
Dale
9:00 am on Wednesday, June 29, 2011
I'm happy to hear that funds will assist the disabled....there is a very large population of disabled individuals in Maryland who will truly benefit from this tax increase. Let's face it, it isn't going to hurt anyone, and it helps schools and people in need. Sounds like a winning decision to me!
JDStuts
9:56 am on Wednesday, June 29, 2011
Good to see all that revenue leave for PG and Baltimore City. What a cockup.
Kamenetz could have backed BCo's legislative team in Annapolis to insist on a more equitable redistribution but got cold feet on his first session and kowtowed to the Democratic machine. The dilemma is only a Democrat could have stood up and made a stance here. No Republican County Executive would have had the juice to rally support. For observers this was Kamenetz first test of leadership and he missed the opportunity. He would have banked some solid capital with his constituents with a tangible result - x number of dollars staying in the county do to my negotiations. Instead he's faced with declining revenues and a tax increase that doesn't benefit his voters.
The real question will play out over time, was his dedication to the machine in return for the prospect of future higher political office a winning gamble?
Rob
10:10 am on Wednesday, June 29, 2011
Next year, the $ is scheduled to go into the infamous general fund. Lobbyists for the disabled
are trying to get O'Malley to commit funds to them following the first year of initial benefits.
amdactivist
12:54 pm on Wednesday, June 29, 2011
Md now the 4th highest taxed state in the country. More than $2 billion a year in "maryland" go to Illegal aliens. The bridge toll $$ have been raided and used for many other things besides working on bridges. 1/3 of our Millionaires * our employers* left maryland because omalley enforced the Millionaire tax and 8.5% corporate tax heist of our country in '08 and hundreds of other high fines, taxes, fees etc imposed on citizens, do you really think the alcohol tax will go to disabled? Why don't omalley tell the truth for a change. He made a comment a few years ago that "lies win elections".. He stands by these words.. I am upset with all our very liberal airheads in office including omalley, cardin, miller, busch, Viva la Mikulski and others. I am a many year democrat who always voted bi-partisan but now I do lean far right to all that speak the truth and their records can prove it.
Dale
1:31 pm on Wednesday, June 29, 2011
@ andactivist....bringing personal politics into this does nothing helpful...how about a real solution, that's good for the general population of the state, and not specific groups. If you have a good idea in this economy, which is the result of greed in selfishness, please tell us.
buck hershey
4:40 pm on Friday, July 1, 2011
Right On amdactivist! The $$$ will go straight and quickly into the 2 largest MD
toilets: Balto. City and P. G. County. Most of the so-called "graduates" of those
high schools cannot count to 14.