- From the news-gazette
Meeting on new liquor tax set in Champaign
CHAMPAIGN — Champaign officials are hoping a public meeting regarding the proposed 4 percent tax on package liquor this Monday will provide business owners with more information about the surcharge.
The city council has informally supported the new tax which, if approved this summer, is expected to generate $700,000 per year and save city services like those performed by the police department's front desk staffers.
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At least a few business owners have begun expressing disapproval of the new tax, which Sun Singer Wines owner Mark Yarbrough said developed very quickly and without input from the local liquor industry.
The informational meeting is scheduled for Monday at 7 p.m. in the Champaign City Building, 102 N. Neil St.
Yarbrough feels like the tax is an attempt to "cherry-pick the liquor industry."
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The new tax "is senseless and doesn't take into consideration what it does to me personally and the retail liquor industry in Champaign," Yarbrough said.
Council member Karen Foster was the first, at least publicly, to suggest the city council consider the package liquor tax as a new source of revenue to save jobs at the police department's front desk as a tight budget threatened their existence. She said she supported the tax, which would apply only to retail liquor sales, after learning about it "from some information we received" from city administrators.
"I wanted to find a revenue source that we could keep the front desk open 24/7 and bring back the front desk positions," Foster said. "So with that revenue source, I would be able to do that."
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"I'm not happy to tax, and unfortunately we were put in a position where we had to find a revenue stream," Gerard said.
And since a lot of police issues are related to alcohol, he said, it seems like an appropriate place to leverage the charge.
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The $700,000 expected to be created by the liquor tax is more than the $210,000 that would be needed to save three front desk jobs at the police department, but Foster suggested the rest could be used for, possibly, avoiding the shut-down of a fire engine at one of Champaign's six stations.
- from Will am 580
Business Owners, Former Elected Officials, Oppose Champaign Liquor Tax
Owners of Champaign liquor stores say it’s unfair to target one type of business in order to save three positions at the city’s police department.
During last night’s informational meeting on the suggested 4-percent tax in package liquor sales, those who run stores like Colonial Pantry and Sun Singer say the tax will hurt business, and drive their customers elsewhere.
And Picadilly Beverage Shop owner Jack Troxell claims enacting the tax will force layoffs.
but cop jobs (desk jobs) are more important than other people jobs; additionally, they need to raise 210,000 to pay for the 3 jobs and they are thinking they'll get 700,000. If my math is right, to get the amount they NEED, they only need to raise the tax 1.2% instead of 4%. The rest is just greed. Oh, and how many people can liquor stores pay minimum wage to for 210k? Lets see, if minimum wage is $8.25 we divide 210,000 by that and get the total hours for a year at that rate, which is 25454.5; 40 hours times 52 weeks is 2080 hours for full time. Divide 25454.5 by 2080 and you get 12.23. So, for 210,000 you can get 3 people to work the desk at the police station, or hire 12+ people at minimum wage at the liquor stores. Granted, the 210,000 includes benefits for the cop jobs and other perks... you know, the things that minimum wage people don't get. Oh, and do you really think a liquor store is going to have full time employees that actually have benefits? No, they could instead hire 24 part time employees and not have the benefits. So, in theory, the money could either hire a lot of people, or keep 3 jobs. And that's just the 210,000 they "need". Not the 700,000 they think they'll get (which could be 3.5 times the amount). If you want to stimulate the economy to get more "revenue" give that money to kids in summer jobs; kids are great at spending money on stupid things.
“We’re not in a high-margin industry,” Troxell said. “We’re in a volume industry with low margins. And that’s the way it works. If your business drops off, you don’t need as many employees. And when that happens, they don’t have the same hours, and you can’t afford to pay them.”
Kam’s and Pia’s owner Eric Meyer said the liquor tax unfairly singles out an entire sector of business for just one cause. Meyer, who’s also the Vice President of the Illinois License Beverage Association, suggests a tax closer to one percent.
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“As the agenda was lined up that night, it was both or neither (the liquor tax and police cuts),” Gerard said. “So we had no choice. Now we can table this until July if we want, and we’ll continue to discuss it, but as far as the hullabaloo from the former mayors about the manner in which I do things, well, I just do it a little diffferently, I guess.”
The tax is expected to bring in $700,000, well over the $200,000 necessary to restore the police positions. The funds could also go to restore overtime at fire station 4 on Champaign’s west side. The liquor tax is the focus of a study session next Tuesday, while business owners suggest different revenue streams, including a hike in the overall sales tax.
why not hire more firemen instead of paying overtime? I know everyone wants overtime, and most people depend on overtime money, but isn't it more efficient to hire a part time person than to pay another person time and a half (or more)?
- From WAND 17 NBC
Champaign City Council Talks Liquor Tax
CHAMPAIGN, IL- In Champaign, more questions are being raised about the proposed 4-percent tax on package liquor.
Some local business owners say the tax will hurt sales.
The tax is expected to raise about $700,000 in revenue. Some of that money could help save jobs at the Champaign Police front desk.
Champaign city officials have not said where the rest of the money would go.
The City Council is planning to host another study session next week to consider the tax.
- From WICD 15 ABC
Champaign Liquor Tax Proposal
A four percent liquor tax on packaged liquors would affect about 80 businesses in Champaign and bring in roughly $700,000.
The liquor tax would be on alcohol you buy and bring home not on drinks you consume in a bar or restaurant.
The four percent liquor tax would help keep three positions at the police department.
URBANA
from the news-gazette
Urbana could follow Champaign's lead on new liquor tax
URBANA — If the city of Champaign imposes a new 4 percent charge on package liquor this summer, Urbana could be quick to follow, Urbana Mayor Laurel Prussing said on Tuesday.
The proposal to generate new revenue as both cities deal with tight budgets is a joint venture, though Urbana city officials have yet to discuss it in public sessions. Urbana residents who want to avoid paying 4 percent more for their alcohol should keep a close eye on the outcome of the debate in Champaign, where the proposal is growing more contentious.
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And if the tax is adopted in Champaign, it is likely Urbana residents would start paying more for their liquor, too.
"If they adopt it, I think that's something we would do as well," Prussing said.
City administrators in Urbana have already been discussing the tax with officials in Champaign, she said.
"We always try to work with Champaign because we don't want to put either city at a disadvantage," Prussing said.
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Prussing said the new revenue that a 4 percent package liquor tax would generate in Urbana is estimated roughly to be $500,000, and she said there is no specific place in the budget where that might go.
"It's kind of a mistake to say you're going to pay for a certain thing with this because our overall problem is a gap between spending and revenue," Prussing said.
Savoy, here I come.
Coming soon to Savoy... new liquor taxes... (probably)
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