Not much has changed as far as liquor sales in the state of Pennsylvania since Prohibition ended, which was 1933. Privatization of liquor sales in the state is not new, as many governors and state lawmakers have tried and failed to implement a new system. Now State House Majority Leader Mike Turzai is pushing to get rid of the State Store system run by the Liquor Control Board and allow Pennsylvania to privatize liquor sales. However, changing a system that has been in place for so long is not an easy process, as Mr. Turzai is finding out. Plus, the new bill that has yet to be formally introduced raises a lot of questions.
Why change a system that works?
One of the main reasons behind the repeated attempts at privatizing liquor sales in Pennsylvania has to do with the fundamental belief that the state should not be involved in liquor sales. Last year the State Store system brought in close to $2 billion in sales, which resulted in a record $496 million being deposited into state accounts from taxes.
What are the major changes that would be made?
Among the sweeping changes that are being proposed is doubling the amount of liquor sale licenses to 1,250. Those licenses would be auctioned off to the highest bidder, but would be monitored and distributed by region. The bill would also scrap the Johnstown flood tax, which is 18 percent, and replace it with a per gallon tax anywhere from $8.25 to $12 depending on the product.
What about State Store employees?
Unfortunately, the 5,000 Liquor Control Board employees would find themselves out of work. Since liquor would be available at grocery stores and smaller shops, those employees desiring to stay in that line of work would have to land one of the new positions. Not surprisingly, the United Food and Commercial Workers, which represents the majority of the employees, is strongly opposed to the change.
What are the actual chances of this passing this time?
The chances of the proposed bill passing into law remain iffy at best. Despite any support from Pennsylvania Governor Tom Corbett and Mr. Turzai's ability to get his message across, liquor store privatization will have a long road ahead. Replacing a system that contributes a half billion dollars into state coffers is no easy task.
Jason Gallagher is a former travel professional and long-time Pennsylvania resident. These experiences give him a first-hand look at developing situations in the state and everything included in the travel industry from technology to trends.
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