Rogers Panel Approves 4 Percent Liquor By The Drink Tax

Wednesday, October 23, 2013

ROGERS — A restaurant owner spoke against a proposed 4 percent surplus tax Tuesday later approved by aldermen.

Joe Lisuzzo, owner of Copelands Restaurant in Scottsdale Center, asked aldermen to consider taxes on the sale of liquor, beer and wine in liquor stores would bring in more money than a 4 percent tax on liquor by the drink.

“We just got out from under a 5 percent tax on private clubs and now you are considering a 4 percent tax on liquor by the drink. That just about replaces the previous tax,” Lisuzzo said.

When Benton County was dry, restaurants serving liquor, beer and wine had to have a private club permit from the state and the city. When residents voted to allow the sale of liquor, beer and wine, the Legislature approved a law allowing aldermen to approve liquor by the drink, rather than taking the issue to the voters.

Lisuzzo said he and other restaurant owners put a pencil to the numbers Tuesday afternoon and he could prove the city will garner more money from liquor store sales than the 4 percent on spirits served in restaurants.

“My figures indicate through the sale of liquor, beer and wine in liquor stores the city should get at least $750,000 in taxes,” Lisuzzo said, based on the 2 percent tax the city collects.

The city collects a 2 percent tax on sales, however, only 1 percent goes into the general fund. The other 1 percent is restricted to repaying bonds, according to city ordinance.

“We have looked at the figures,” said Greg Hines, mayor. “We were collecting $450,000 in private club taxes on liquor, beer and wine. We can only collect the 4 percent tax on spirits, not beer and wine served in restaurants. I don’t think we can replace the private club income on just the sale of alcohol in liquor stores,” Hines said.

Hines also pointed out restaurants no longer need a state or local private club license, can buy liquor wholesale, something private clubs couldn’t do, and have liquor delivered rather than sending a bonded employee to Springdale to buy liquor at retail prices.

Mark Kruger, alderman said he thought the tax was fair.

“It’s tax, but it’s not as high as the previous tax. We don’t want to lose money, that’s not fair to our residents, so I support the 4 percent tax,” Kruger said.

Aldermen approved the 4 percent tax. Lisuzzo was gracious after the vote. When the council meeting ended he thanked the mayor and aldermen for giving him the opportunity to speak to the council.