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This page contains a single entry from the blog posted on June 9, 2012 11:46 AM. The previous post in this blog was From Matt Wuerker. The next post in this blog is A trip to the moon on gossamer wings. Many more can be found on the main index page or by looking through the archives.

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Saturday, June 9, 2012

Pennsylvania state liquor stores may be next to go

When we were a teenager in New Jersey, the first state liquor stores we ever encountered were in Pennsylvania. Our cousin, a young man of the same age as we, introduced us to their system on a visit in the early '70s. As we dimly recall it, if you were 18 they would sell you only near beer -- 3.2% alcohol max. You had to be older -- maybe even 21 -- to get stronger beer than that. Years later, when we moved to Oregon, we discovered that all the beer being sold here, to everyone, was 3.2. That seemed pretty ridiculous, and it must have changed in the '80s.

Anyway, in response to our post about the recent privatization of booze sales in Washington State, a reader points out that the Pennsylvania state stores may soon be dismantled as well. The store clerks there are unionized, however, and so there will be more yada yada before it can get done. No word on whether, like Washington, the state will load on so many fees and taxes that consumers won't get a break as a result of the switchover.

Comments (7)

The price increases have nothing to do with taxes. My usual bottle of bourbon went from $22 in the state liquor store to $35 at Fred Meyers before taxes.

That's just the free market doing its thing.

It's early. The base prices will eventually be bid way down by Costco. You'll still pay more than $22, though, because of the state taxes and fees.

Oregon was pretty weird in a lot of ways back in the early 1970's: in addition to selling only 3.2, banks were closed on Saturdays, there were almost no atms to be found, and grocery meat departments were cleared and darkened on Sundays.

Pretty amazing, as back in the little farming/college town in the midwest (population 30,000), most grocery stores were open 24/7, sold beer, wine, and liquor, never closed their meat departments - and there were so many at machines that you could find one within a one-block radius of wherever you happened to be. Banks were all open on Saturdays, too.

Life in the big city took some getting used to, back then.

The price increases have nothing to do with taxes. My usual bottle of bourbon went from $22 in the state liquor store to $35 at Fred Meyers before taxes.

That's just the free market doing its thing.

No, there are 27% of additional taxes in the sticker price on the shelf. (A 10 % distribution fee and a 17% retail fee. Neither of which ever existed before.)

Then the old 20.5% sales tax and $3.7708 per liter tax get added on top of that.

So actually the new taxes are about 32.5%. (Because of the 20.5% sales tax on the 27% of new taxes.)

Meanwhile, one liquor store in Portland now sells beer and wine

I think there are at least two as Pearl Specialty Market & Spirits has been selling beer and wine for a long time. (They even sell, or at least used to, cheese and other things that a liquor stores normally can't.)

I never understood why they were special, but I guess in the Pearl you don't have to follow the normal rules.

It's just those "smart" ALECs at it again.

crooksandliars.com/files/vfs/2012/05/aleconprivatization.doc
[copy & paste into browser]

http://www.alecexposed.org/wiki/ALEC_%26_Privatization

Meanwhile, back in PA:

Any privatization plan could face a legal challenge from the union representing state store workers, which agreed to a contract last weekend that lasts until July 2015. The union maintains the new contract guarantees jobs for the 3,500 employees, effectively killing privatization, but the Corbett administration's position is the contract would be voided if the state no longer operates the stores.

Looks like Corbett just trapped himself into a bad faith verdict and unfair labor practice sanction & bar. Couldn't happen to a bigger jerk in the U.S., who fiddled on the Jerry Sandusky/Penn State sex abuse scandal investigation while he ran as A.G. for Governor:

Gov. Corbett In Hot Seat Over Second Mile Grant
http://pittsburgh.cbslocal.com/2011/11/16/gov-corbett-in-hot-seat-over-second-mile-grant/

Excerpt:

“It doesn’t pass the smell test,” Pennsylvania Democratic Chairman Jim Burn said.

Burn noted that Corbett also accepted political contributions from the Second Mile board of directors totaling tens of thousands of dollars.

Gov. Corbett Buried Sandusky Scandal as AG?
http://www.youtube.com/watch?v=t33DLPVIGos




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