Thursday, December 13, 2007
Much Discord and Confusion Over Drink Tax
The opinions have continued to roll in, but there should not be any surprise: bar owners and bar patrons are not at all happy about the new 10 percent poured drink tax that goes into effect January 1st. Here’s a sampling of the chorus of voices:
“I have nothing against Port Authority, but if I run into trouble here, are they going to tax riders to help me out?”
“It's not fair to those who come out and relax.”
“It's totally ridiculous.”
“With the high wages and benefits, the whole thing is way out of line.”
“If my business was failing, would they add 10 percent to bus fare to bail me out?'”
If they are looking for a silver lining though, they should take heart that the County itself is confused as to how they are even going to work out the logistics of collecting the tax. The County Treasurer noted that “County Council threw this in my lap and there are a few hurdles.” There is someone that maybe bar owners could sympathize with. While the County machinery gets itself up to speed, tavern and restaurant personnel have to get their menus changed, cash registers adjusted, and have to do so on their own dime all by January 1, just eighteen days away.
Maybe once the tax is up and running those businesses that aren’t too worried about their bottom line can take some time and look at what purpose the money really serves: to shore up the County budget, which is expected to show a significant drop in uncollected property tax revenues and large increases to debt service and fringe benefits. It is not as though the drink tax will be offset by a reduction in property taxes, the source from which the County has historically funded mass transit.
“I'm not sure Houdini could do this, but we're going to give it our best shot.” That statement by the Treasurer accurately describes the bait and switch perpetuated by the County and the magic act a lot of businesses are going to have to perform to make sure their business does not drown while they struggle with the chains of the new tax.
“I have nothing against Port Authority, but if I run into trouble here, are they going to tax riders to help me out?”
“It's not fair to those who come out and relax.”
“It's totally ridiculous.”
“With the high wages and benefits, the whole thing is way out of line.”
“If my business was failing, would they add 10 percent to bus fare to bail me out?'”
If they are looking for a silver lining though, they should take heart that the County itself is confused as to how they are even going to work out the logistics of collecting the tax. The County Treasurer noted that “County Council threw this in my lap and there are a few hurdles.” There is someone that maybe bar owners could sympathize with. While the County machinery gets itself up to speed, tavern and restaurant personnel have to get their menus changed, cash registers adjusted, and have to do so on their own dime all by January 1, just eighteen days away.
Maybe once the tax is up and running those businesses that aren’t too worried about their bottom line can take some time and look at what purpose the money really serves: to shore up the County budget, which is expected to show a significant drop in uncollected property tax revenues and large increases to debt service and fringe benefits. It is not as though the drink tax will be offset by a reduction in property taxes, the source from which the County has historically funded mass transit.
“I'm not sure Houdini could do this, but we're going to give it our best shot.” That statement by the Treasurer accurately describes the bait and switch perpetuated by the County and the magic act a lot of businesses are going to have to perform to make sure their business does not drown while they struggle with the chains of the new tax.
