HomeMy WebLinkAbout1977 06-22 Liquor dealers get a break THE REVIEW get-
Li uor dealers a break
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by Anne Skinner additional burdens dealers would bear in challenge the constitutionality of singling
the coming year. out the seven county area and the on-sale
The 11 on-sale liquor dealers in The group requested,if any increase,a liquor dealers.
Maplewood got a $1,500 break from the 20 percent or $500 increase to cover ad- For an establishment with gross annual
city council June 16. ministrative costs of the city. sales of$200,000,the stadium tax requires
The action was a result of the dealers' Councilman Norm Anderson moved to $4,000 in additional business to maintain a
protest of a recently approved ordinance amend the ordinance to indicate a $500 10 percent profit margin. If additional
which raised the cost of a license from increase for this year and review the fee business is not garnered, dealers com-
$2,000 to$4,000.The council amended the next year.The motion was approved by a plain, the tax along with liability in-
ordinance last Thursday to reduce the 4-1 vote. Councilman John Greavu, who surance and property tax increases will
increase to$500. sought a $200 increase, dissented. cut into the establishment's margin of
In a letter addressed to the city profit.
manager, the on-sale liquor dealers IN A RELATED AREA, The Greater Danna said the association's legal staff
wrote, "We would be somewhat naive if St. Paul Area On-Sale Liquor Dealers is currently researching the possiblity of
we did not recognize the increased ad- Association (GSPAOSLDA) has been a lawsuit. "It looks like we're going to
ministrative costs in all areas of business considering suing the State of Minnesota bring one,but we have another solid week
and government; however,we feel that a regarding a bill passed by the Legislature of research to complete before we decide
fee increase of $2,000 to on-sale liquor to partially fund the construction of a new whether it is a good case," he noted.
dealers is unfair and a tremendous stadium. The attorney also said the GSPAOSLDA
burden to our small businesses." The bill, which calls for a two percent was in the process of speaking to other on-
The group noted other increases such as sales tax on on-sale liquor sales,pertains sale dealer associations in the seven
the two percent sales tax for the new to only the seven county metropolitan county area. "They are definitely in-
stadium and increased insurance area. According to the association's at- terested in joining us if we bring suit,"he
premiums as well as property tax hikes as torney Anthony Danna, the suit would added.
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