State Representative Mike Turzai announced legislation today to privatize Pennsylvania’s state liquor stores (i.e. wine and spirit sales). The legislation would auction off 750 retail store licenses and 100 wholesale distributor licenses to the highest bidder. The legislation would also replace the current liquor tax to a gallonage tax, and charge sales tax on the end buyer, rather than on wholesale. Additional measure would provide benefits for current Liquor Control Board employees, and incentives for new stores to hire PLCB workers.
Turzai estimates a one-time influx of $2 billion from the auction, and no change (or an increase) in liquor tax revenues.
Click here for a summary of the legislation and handouts from the press conference: Turzai Liquor Store Privatization
The blog “Why the PLCB Should Be Abolished” also has a post on Turzai’s proposal.
More resources on PA Liquor Store privatization:
- Government-Run Liquor Stores: The Social Impact of Privatization
- Bamboozled: Why Government-Run Liquor Stores are Socially and Economically Impractical
- Testimony: Public Benefits from Private Liquor
- Report from the Liquor Control Board on underage drinking, which concludes that Pennsylvania has similar rates of college-age drinking as the national average, and higher rates of high school age drinking.