Alcohol sales Taxes

States look to alcohol for shots to economy

SALT LAKE CITY (AP) — Utah is the only state that requires people to fill out an application and pay a fee before entering a bar.

But the shelf life of this law — enacted 40 years ago in a state where nearly two out of three residents are members of a religion that shuns drinking — appears to be dwindling.

In Utah, and across the country, governors and lawmakers faced with budget deficits are advocating loosening laws that restrict alcohol consumption in the hopes of boosting tax revenues.

UIn Georgia, Connecticut, Indiana, Texas, Alabama and Minnesota, lawmakers are considering legislation this year that would end the ban on Sunday liquor sales. All but 15 states sell booze on Sundays.

UIn Nebraska, a state lawmaker has proposed allowing beer to be consumed in state parks as a way to boost tourism.

UOther states, including Utah, are considering allowing the sale of liquor on Election Day.

Drinkers shouldn’t break out the bubbly just yet: Two dozen states, including California, Massachusetts, Oklahoma and Virginia, are looking to help their budgets by raising alcohol taxes.

Alcohol taxes are a popular budgetary crutch for lawmakers because liquor sales tend to hold up relatively well, compared with other revenue streams, during hard times, said Steve Schmidt, vice president of the Alexandria, Va., based National Alcohol Beverage Control Association.

In 2008, revenue reported by liquor suppliers rose 2.8 percent from the previous year to $18.7 billion, according to the Distilled Spirits Council of the United States. That’s slower than the 6 percent average annual growth rate since 2000.

The council’s president, Peter Cressy, calls liquor “recession resilient” not recession proof — a point that industry officials make when cautioning lawmakers about raising taxes.

Earlier this month, distillers in Kentucky poured bottles of bourbon on the statehouse steps there to protest a proposed tax increase.

In Pittsburgh, a 10 percent tax placed on alcohol last year inspired an animated satire, resulted in some bars printing signs saying the tax’s architect was not welcome and one restaurateur challenging Allegheny County Executive Dan Onorato to a charity boxing match.