I may get trashed for this, but I really don’t care. Monongalia County in general or the city of Morgantown, in particular, should place a special tax on the purchase of alcohol. There, I said it. In recent years, both have struggled to find ways to enhance tax revenues. Many remember the proposed "user fee" that Monongalia County commissioners attempted to put to vote in 2007. The fee would have deducted $2 a week from those working in the county, in an effort to improve area roads. More recently, Morgantown attempted to enact a "night life" or "entertainment" fee, which would have charged users 75 cents whenever they entered a late night established. The fee would have covered nearly $1 million per year the city pays in expenses relating to nightlife. Both went down in flames after meeting stiff resistance from area voters and businesses, which is to be expected. Everyone wants more services from their government. Rarely, however, do they want to pay for them. Taxes are an economic reality for all that live in an orderly, democratic government. For the most part, we accept them. That doesn’t mean we don’t dislike them. Yet, that reality doesn’t keep individuals from complaining about, say, substandard roads and sidewalks in the city of Morgantown. Taxpayers look for balance, and we occasionally get it. But basic economic principles, like they almost always do, typically hold the solution. And in the case of taxation, the solution is to tax (more heavily) those goods and services that are relatively inelastic. A good or service is considered inelastic if an increase or decrease in its price does little (or nothing) to effect the quantity demanded. These types of goods are typically those of which there are few or no substitutes. In the United States, the most obvious example of such a good is gasoline – it’s the liquid that fuels almost ever car in the nation. In Morgantown, the most obvious example is alcohol – it’s the liquid that fuels almost ever party or late night function in town. There are few, if any, (legal) substitutes for alcohol. The tax revenues generated from a few extra cents on the dollar could potentially be greater than the meager 75 cent fee the city proposed in the past. What would be most important in this hypothetical sense is the government not make the alcohol tax so great that it creates the incentive for individuals to travel outside the area to make purchases, thus creating an unwanted and unintended consequence. Yet, such side effects seem unlikely – there is only one Bent Willey’s. And most freshman will find the walk to Fairmont rather difficult. Such a "sin-tax" (though I use that term lightly) might alter the perception of alcohol consumption in this city and ultimately create positive affects. Do you really want to throw up your relatively more expensive Jager Bomb on the sidewalk? You paid good money for it, my friend. Thus, our streets (and those that walk on them) will benefit. Thus, the added tax revenues will be generated in a societally beneficial way, and Morgantown (or Monongalia County) will be better for it. The benefits, obviously, outweigh any perceived costs. And while private clubs are already required to pay a hefty 11 percent tax on the liquor and wine they purchase from retailers in state, it’s difficult to feel sorry for any establishments that charge $6 for a small mixed drink.
While I have absolutely no idea the exact amount of alcohol purchased in the Greater Morgantown Area, it’s probably safe to say that it’s a lot. And I mean a ton. No further explanation is necessary.
Morgantown should tax alcohol sales
Published: Thursday, October 22, 2009
Updated: Thursday, October 22, 2009
18 comments
It is not the government's responsibility to tell us how to live our lives. If they are going to get so nitpicky as to start charging us to drink a Coke, we might as well move to China or Cuba. There's an old saying- give them an inch, they'll take a mile. Seems more like we give the government an inch, they take 100 miles. What gives the government the right to tell us what we can or cannot eat or drink? I must have missed that clause in the Constitution. It must be near the one that gives the government the right to take over banks and auto companies. If you feel its proper to throw $.50 (or whatever the tax would amount to) the governments way every time you drink a Pepsi or Bud Light or whatever your beverage of choice is, let me know and I'll get the Treasury's address for you- you can start sending your contributions now, why wait for them to pass a law? Put your money where your mouth is and get all your like-minded friends to do it too! Tyler: That's interesting. I assumed, since its not mentioned in the article, that there currently was no alcohol-specific tax in Morgantown. Should have known better and looked it up myself. Would have been nice if the author had bothered to do the research and mention that in the article (apparently, its too much to ask for the DA to do that). Thanks for the info!
Pursuant to West Virginia Code 8-13-7, there is hereby imposed a tax of five percent (5%) of the retail purchase price of any and all intoxicating liquors purchased from the Alcohol Beverage Control Commissioner or from any person licensed to sell wine at retail to the public under the provisions of West Virginia Code Article 60-8, within the corporate boundaries of the Municipality. Such tax shall be levied upon the purchaser of such intoxicating liquor or wine, and shall be added to and collected with the retail purchase price of such intoxicating liquor or wine... State law caps the tax at 5%, so it can't be raised without going through the legislature. Taxes initially go to the state and then are returned to the cities.The City of Morgantown financial statement shows revenues of $677,585.41 in fiscal year 2008 from the Wine and Liquor Tax. This goes into the city's General Fund. The user fees pursued by the city in the past are because the state allows only a few ways to raise tax revenues for the city, so user fees are one of the few tools the city is able to use.
The consumption of fast foods and sugary drinks directly leads to obesity. Obesity raises the costs of EVERYTHING.Taxing things that lead to obesity IS GOOD FOR THE ENTIRE POPULATION.