More of us crossing state lines for booze
Sep 4, 2012, 11:47 AM | Updated: 1:36 pm
Brittany Whalen makes change for a sale at a liquor store in north Portland, Ore., just across the Columbia River from Vancouver, Wash. New data show that Oregon liquor stores near population centers in Washington saw large increases in their sales during June, the first month that a new Washington liquor law was in place. The numbers back up anecdotal reports that shoppers from Washington were crossing the Columbia River to avoid new taxes on liquor.(AP Photo/Don Ryan)
(AP Photo/Don Ryan)
Liquor stores just south of the border are making serious profit on Washington voters’ decision to privatize the booze business.
The Wall Street Journal reports a liquor store in Rainier, Oregon is seeing sales $2,000 a day higher than last year.
Oregon’s liquor control board says June and July sales at stores near the border were up $1.5 million compared to the same time last year before Washington privatized liquor sales.
WSJ says since Initiative 1183 went into effect on June 1, the state Department of Revenue reported the price of liquor rose 17 percent from a year earlier. Sales at stores and bars have dropped about 9 percent.
The state Department of Revenue has said it will need at least a few more months to identify long-term trends.
The Tax Foundation, a nonpartisan, nonprofit group that tracks tax rates including sales taxes in states across the U.S., says that Washington liquor taxes were the highest in the country.
Currently, consumers pay $13.50 per gallon in federal excise taxes and $3.77 per liter in state taxes, which were present under the old state-owned system. As of June 1, individuals must also pay a new 20.5 percent liquor tax on all purchases.
Retailers and distributors are also taxed.
Stores must pay an annual license fee equal to 17 percent of their gross revenues from alcohol, and $166 to renew the license.
Distributors must pay 10 percent of gross revenues to renew their licenses.
