Liquor law may affect local bars

Philadelphia Mayor Ed Rendell's Chief of Staff David L. Cohen said it was "unobtrusive," but Smokey Joe's owner Paul Ryan called it "devastating." The disagreement between the public servant and the small business owner is over legislation that was introduced by Rendell and City Council President John Street earlier this year, which, if passed, will raise Philadelphia liquor taxes by 10 percent. The tax will only affect liquor sold at bars, and will have no effect on prices at liquor stores. According to City Councilperson Happy Fernandez, the taxes will benefit the Philadelphia Public School System, which is badly underfunded. "Our schools were cut $98 million last year, in some very important services," she said. "The liquor tax would probably provide $10-25 million. That's a good start." Fernandez, a supporter of the tax, summed up the theory behind the legislation. "Do I want to provide more money for schools and children or do I want to protect the bar owners?" she said. According to Cohen, the tax will not have much effect on residents of Philadelphia. "The bulk will be paid by non-Philadelphians," Cohen said. "The vast majority of the drink sales occurs in downtown business. The vast majority of those will be consumed by conventioneers." Bar owners are not convinced. "This won't be any good," said Murphy's Tavern owner Joe Murphy. "It'll hurt. Instead of going out two nights a week more people will go out one. Instead of drinking [at a bar] they'll drink cases of beer." Other bar owners are ready and willing to take action. "It'll be devastating," Ryan said. "If 10 percent is going to the city, then [the tax will] sack my business 10 percent. We intend to let the councilpeople know that this will be very detrimental to the hospitality industry." City Councilperson David Cohen argued that the tax will set a bad example. "It singles out one industry to carry out the burden of the tax," Cohen said. "It is bad on moral grounds to let the liquor industry brag about what it has done for the school districts. It seems to be wrong for the liquor industry to be able to say 'drink for the kids.'" Others question whether the tax will raise anywhere near the estimated amount. "[The tax] is going to bring in $20 million?" said City Councilperson Joe Vignola. "That would mean that the city sells $200 million a year. I've never seen any study that says we've sold $200 million by the drink. That's a lot of sales." The legislation was originally voted on by Council in February, but did not garner enough votes to pass. Councilman Cohen said the vote was close, though. The tax is expected to be voted on again within the next month or two, he added.

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