Ballot measures: Cities fear loss of booze taxes

The two state liquor initiatives on this November’s ballot, if passed, would shift control of the liquor industry from the state into the hands of the private sector.

Whitman County government and cities within the county both receive funds from the taxes and profits of liquor sales.

Five locations in the county sell liquor; the state-run liquor store in Pullman, and four stores in Colfax, Rosalia, Tekoa, and St. John owned by small-business owners.

The city of Colfax in the 2009 received $34,184 revenue off liquor sales. Of those funds, $14,866 came from state excise tax and $19,318 came from the town’s share of liquor sales earnings. The state liquor control board distributes shares of earning according to town populations around the state.

Initiative 1100 would direct the state’s Liquor Control Board to close all state-run liquor stores, such as the one in Pullman.

Licensed private parties could sell as retailers or distributors and the state would lose its authority to sell spirits. The LCB control over liquor would change.

"The measure would limit the board’s rule making powers to regulation of licensing matters, taxation and the prevention of abusive consumption and underage drinking," read the state Voter’s Pamphlet on I-1100.

The net proceeds on the mark-up on liquor collected by the board would be eliminated, but the initiative would retain existing taxes on the sales of spirits.

Initiative 1105 has similarities to I-1100. It has most of the same measures, except private retailers would be required to pay the state a percentage of their gross sales for five years.

"The measure would eliminate existing taxes on the retail sale of spirits and would direct the board to recommend to the legislature a new tax on the sale of spirits to spirits distributors," read the state Voter’s Pamphlet on I-1105.

I-1105 focuses more on the licensing regulations given to private retailers, drawing up guidelines for fees and deadlines on those licenses.

Under I-1105, the board would no longer set prices for spirits.

According to the liquor control web site, towns in Whitman County received a total of $465,222 for the 2010 fiscal year. The county received $30,727 for its share.

Largest amount went to Pullman, listed at $345,909 for the fiscal year, which ended June 30.

In 2009, liquor proceeds contributed $319,670 to Pullman’s budget.