CentreSquawker: To drink is to pay taxes

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Sunday, January 14, 2007

To drink is to pay taxes

Sure, death and taxes may be life's only certainties.

But there's nothing certain about how you're taxed for alcohol purchases. It depends entirely on where you are.

In Pennsylvania, the state imposes an 18 percent alcohol tax but prevents municipalities from establishing local alcohol fees. (The State College Borough Council, as reported today, would like to see a formal provision allowing local taxation of alcohol.)

Still, Philadelphia managed to gain an exception and institute a city liquor tax in the early 1990s. Revenue from that unique assessment -- which is still very much in effect -- is meant to help public schools there.

As the state's largest city, Philly can, on occasion, maintain special permission for efforts that might elude smaller municipalities.

A drive for a special alcohol tax in Pittsburgh -- some four years ago -- met substantial pushback. To date, The Burgh remains free of a city booze assessment. No exceptions from Harrisburg for you'uns.

Outside the commonwealth, New York, New Jersey, Alabama, Alaska and Wyoming are among the states that allow municipalities to establish local alcohol taxes.

The rate in Juneau: 3 percent.

In Kansas, the state government handles alcohol taxation. But Kansan cities that allow booze and beer sales receive a share of the tax revenue.

In Pennsylvania, alcohol-tax revenue goes into the state budget.

Update @ 1:22 p.m.: The following short report, about a financial assessment at Penn State, accompanies the alcohol-tax article in today's printed CDT.

PSU EYEING ABUSE

Penn State is studying the financial impact of alcohol abuse on the university, spokesman Bill Mahon said last week.

He said the goal is to compile the cost of educational programs, late-night entertainment, police enforcment efforts, counseling, discipline and vandalism related to alcohol abuse.

In November, university executives talked with State College borough leaders about the idea of a per-drink alcohol tax. Revenue would help cover alcohol-related expenses, but the idea would first need to gain support in Harrisburg.

The financial-impact study is not directly connected to the borough tax discussions, Mahon said.

—Adam Smeltz

Posted by Adam on Sunday, January 14, 2007 at 03:47 AM in Current Affairs | Permalink

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