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Local Restaurant, Bar Owners Fight Drink Tax

Owners Say They Won't Be Able To Implement Tax By Midnight Monday

Posted: 3:20 pm EST December 27, 2007Updated: 3:38 pm EST December 27, 2007

On Thursday, the Pennsylvania Restaurant Association took action to block a plan to tax alcoholic drinks in Allegheny County.

The 10 percent tax would be used to help offset a $30 million gap in the county’s budget and to pay for public transit.

The taxable drinks include mixed drinks, and wine and beer that are either opened or unopened. Purchases from liquor stores and beer distributors are exempt from the tax.

The law is set to go into effect Jan. 1. But restaurant and bar owners said there is no way they'll be able to implement the drink tax by midnight Monday. They filed a lawsuit to request an emergency injunction to stop its implementation.

Meantime, two state lawmakers are proposing a liquor discount for bars to offset the new drink tax. Democrat Sen. Sean Logan, of Monroeville, and Republican Sen. John Rafferty, of Montgomery County, are behind the bill.

It would increase the discount from 10 percent to 16 percent for license establishments. They said the state's liquor control board made nearly $500 million in profit last year and could spare a discount to help small businesses.

Ten members of Allegheny County’s Council are seeing some backlash for voting "yes" to the drink tax. Bars are posting a flier that reads, "To county officials that want to tax you. Don't serve them," and has pictures of the council members.

The posters were created by BarSmart.com, a company that does advertising for local bar and restaurant owners.

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