DC Sales Tax on Alcohol Rising to 10%?

[Joe Riley]

I just found out from my boss today that D.C. Mayor Vincent Gray wants to raise the sales tax on alcoholic beverages at the retail level from its current 9% (which it has been for around 10 or 11 years, I think) to 10%. This is just one of many new taxes that he wants to get enacted.

What kind of politician wants to raise taxes during a recession? To my mind, one whose vision doesn't extend beyond the tip of his nose.

I'm beginning to understand why, at Opening Day at Nationals Park this week, he was roundly "boo'd" by so many of the 38,000 in attendance.

I think that this is a terrible idea (naturally, I'm more than a little biased) but I think that soaking people for more sales tax, especially at a time like this, is just cruel.

I welcome other views, though. What say ye all?

[astrid]

So you would rather have him balance the budget cut spending (which has a far worse effect on the economy than a slight tax increase on a luxury item that will be felt by absolutely no one) or no-bid sell public facilities to the Koch brothers?

[dcs]

I welcome other views, though. What say ye all?

I personally am not a fan of the regressive nature of sales taxes in general. Governments need to be funded, but there must be better methods. Maybe they could levy a 10% tax on all PAC contributions.

I wonder what would be the reaction if they raised the sales tax on just corn syrup-based carbonated beverages?

[Barbara]

Of all the reasons that caused the booing of the Mayor, raising the liquor tax was so far down the list as to be invisible. Heck, I thought the tax was 10% all along and mentally added that amount to my purchases.

[csirwillis]

Of all the reasons that caused the booing of the Mayor, raising the liquor tax was so far down the list as to be invisible. Heck, I thought the tax was 10% all along and mentally added that amount to my purchases.

They could cut some of their DC Govt salaries..and the DC govt employee cars, they have Escalades...Why can't they drive a Focus...

[Barbara]

They could cut some of their DC Govt salaries..and the DC govt employee cars, they have Escalades...Why can't they drive a Focus...

That is almost exactly my point. Can you say "Buyer's Remorse?"

[Keithstg]

That is almost exactly my point. Can you say "Buyer's Remorse?"

I believe many people are saying just that, or expletives to that effect, anyway. The fact that a majority of our residents voted for this "One City" nonsense is beyond frustrating. Sales tax on alcohol is the least of our problems (and for what it's worth Joe, would not give me pause from buying wine in DC at all. Now the extra ~1% of my income that Vince wants is another matter....)

[Joe Riley]

So you would rather have him balance the budget cut spending (which has a far worse effect on the economy than a slight tax increase on a luxury item that will be felt by absolutely no one) or no-bid sell public facilities to the Koch brothers?

Please show me where I advocated either of the two positions you just mentioned.

I believe that you cannot tax a municipality into prosperity, and raising taxes during a recession sounds nice in theory but is often counter-productive.

Does D.C. have to bring back the control board? Heck, there used to be snack taxes and the like when D.C. was in worse shape years ago.

Grey makes me miss the Anthony Williams administration, which restored fiscal responsibility to the District. From everything I read of Grey's administration so far, it just seems to be incompetent to me; so far, it certainly doesn't inspire any confidence.

[Mrs. B]

I have no problem paying an additional .5% income tax. I don't relish the thought but it's better then cutting out services to the needy. (not that they won't do that anyway) Still I'm kind of in a rabid tax the rich/income redistribution is good state of of mind these days.

DCS's suggestion of taxing PAC contributions works for me too!

[The Hersch]

Heck, there used to be snack taxes and the like when D.C. was in worse shape years ago.

Are you implying that there is no "snack tax" now? Food sold for immediate consumption, whether in a restaurant or a grocery store, is currently subject to a 10% sales tax.

I don't miss the Williams administration, but I do miss the Fenty administration.

[Joe Riley]

Are you implying that there is no "snack tax" now? Food sold for immediate consumption, whether in a restaurant or a grocery store, is currently subject to a 10% sales tax.

I don't miss the Williams administration, but I do miss the Fenty administration.

There is no snack tax now, but yes, there has been a "prepared food" tax for quite some time. This is the tax that you pay in restaurants, or if you buy a hamburger at Burger King drive-through, or a hot dog at 7-Eleven, or a bagel sandwich at Starbucks. There used to be a tax on what we think of as snack food; bagged potato chips, etc..

[deangold]

There is no snack tax now, but yes, there has been a "prepared food" tax for quite some time. This is the tax that you pay if you buy a hamburger at Burger King drive-through, or a hot dog at 7-Eleven,

Why is there a food tax on either of these? I could see a hazardous waste tax.....

Or is it a tax on "Food"?

[giant shrimp]

i doubt that an additional 1% tax on alcoholic beverages would cause much pain.

it seems like my spirits have been going up significantly more than that despite the downturn.

i am not proposing this, but d.c. home owners pay one of the lowest property tax rates in the nation. if d.c. were the 51st state, its 4.64% median tax rate would rank 47th among the states. (the highest median rate is 18.89% in new jersey.)

veering in this direction would most likely be harmful to restaurant business.

[The Hersch]

There used to be a tax on what we think of as snack food; bagged potato chips, etc..

You know, I didn't realize they had gotten rid of that. Hey, it was only ten years ago, and I never buy such stuff. I do recall that you had to pay tax on a pint of milk, but not a quart.

[deangold]

You know, I didn't realize they had gotten rid of that. Hey, it was only ten years ago, and I never buy such stuff. I do recall that you had to pay tax on a pint of milk, but not a quart.

Even today, a bagel is food ready for immediate consumption {taxable} and 12 bagels are not.

[The Hersch]

Even today, a bagel is food ready for immediate consumption {taxable} and 12 bagels are not.

Remember that little fancy food shop that was next to the south Dupont Metro entrance for a few years, in the late 80s or early 90s (I think)? I can't remember the name of it. They had a deli counter, and had their system set up to charge meal tax on everything you bought from it--a ham sandwich or a pound of ham. I tried to buy a pound of ham (or something) from them, and when I saw they were trying to charge meal tax on it, I tried to get them to fix my bill. They refused, or were unable to, so I walked out and never shopped there again. The place was over-priced to begin with.

[Barbara]

Remember that little fancy food shop that was next to the south Dupont Metro entrance for a few years, in the late 80s or early 90s (I think)? I can't remember the name of it. They had a deli counter, and had their system set up to charge meal tax on everything you bought from it--a ham sandwich or a pound of ham. I tried to buy a pound of ham (or something) from them, and when I saw they were trying to charge meal tax on it, I tried to get them to fix my bill. They refused, or were unable to, so I walked out and never shopped there again. The place was over-priced to begin with.

Lawson's?

[Joe Riley]

If I'm honest, one of the reasons why I'm grousing about this is because I have to listen to customer complaints about D.C. sales tax EVERY....SINGLE....DAY. Especially from the Virginia and Maryland customers who have a lower tax rate that they pay on alcohol. I usually brush it off by extolling the virtues of our clean, smoothly paved streets that these taxes surely pay for

The sales tax rate on alcoholic beverages has been 9% for many years now, possibly as long as ten years, and that was up from 8 or 8.5%.

The single biggest change this makes for us? We've always offered a 10% case discount on wine; if this tax increase goes through, it essentially wipes out any customer savings. Hey, at least it will make the arithmetic easier

[Keithstg]

If I'm honest, one of the reasons why I'm grousing about this is because I have to listen to customer complaints about D.C. sales tax EVERY....SINGLE....DAY. Especially from the Virginia and Maryland customers who have a lower tax rate that they pay on alcohol.

Ask them if they would like to pay a commuter tax instead. Now there's one tax I could get behind*!

*sadly, this will never come to pass.

[The Hersch]

Lawson's?

That was it.

[JPW]

If I'm honest, one of the reasons why I'm grousing about this is because I have to listen to customer complaints about D.C. sales tax EVERY....SINGLE....DAY. Especially from the Virginia and Maryland customers who have a lower tax rate that they pay on alcohol. I usually brush it off by extolling the virtues of our clean, smoothly paved streets that these taxes surely pay for

Seriously? Ask the Monkey County people about the 25% "tax" they are paying by having to buy from the county.

[lperry]

Seriously? Ask the Monkey County people about the 25% "tax" they are paying by having to buy from the county.

If you compare the overall expense of most things in the MoCo stores to that of the Virginia ABCs, there's really nothing to complain about. MoCo's sales are good too, while VA's just get the price down to MSRP. On a good sale day. I make a point of heading into the MoCo stores when I am near one.

[JPW]

If you compare the overall expense of most things in the MoCo stores to that of the Virginia ABCs, there's really nothing to complain about. MoCo's sales are good too, while VA's just get the price down to MSRP. On a good sale day. I make a point of heading into the MoCo stores when I am near one.

You'll get no argument from me on that. VA ABC is the pits in terms of prices. I always try to remember to buy liquor elsewhere before I head to the Old Dominion.

But at least the Virginians don't have to cross any borders for wine or beer.¹

1 Although I will admit that I've ignored the prices to patronize the wonderful Fenwick Beer and Wine in Silver Spring. I really want him to do well.

[Joe Riley]

Seriously? Ask the Monkey County people about the 25% "tax" they are paying by having to buy from the county.

Hey, at least the MoCoFo's can go to other Maryland counties and pay less; they don't HAVE to drive into the District.

MoCo's an anomaly. Some spirits and wines they buy directly (i.e. outside the three-tier system) and they can be competitive on prices with those items. Other items? Some of the prices I've heard about and seen just seem to border on usery.

[Joe Riley]

BTW - I just learned today that Maryland passed a sales tax increase to 9% effective this July. so that certainly "evens the playing field" somewhat.