http://slog.thestranger.com/slog/archives/2012/09/06/washington-new-privatized-liquor-system-is-becoming-a-cautionary-tale-for-other-states Comments On: Washington New Privatized Liquor System Is Becoming a Cautionary Tale for Other States by Brendan Kiley en-us Copyright 2013 The Stranger. All rights reserved. This RSS file is offered to individuals, The Stranger readers, and non-commercial organizations only. Any commercial websites wishing to use this RSS file, please contact The Stranger. webmaster@thestranger.com (The Stranger Webmaster) Sat, 18 May 2013 00:00:01 -0700 Sat, 18 May 2013 08:30:00 -0700 Foundation http://blogs.law.harvard.edu/tech/rss Spirit United Kingdom Industry Report
Posted by rosstaylor2440]]> Sat, 09 Feb 2013 00:36:33 -0800 The Stranger
1- Clinton making the case that:
Obama hasn't gotten the job done-not even close- but, hey!- even a demigod like me couldn't have done it.....(plus reminding everyone how much they miss Bill and what a limp noodle Obama is)

2- The vicious snarling angry rank and file Democraps rejecting God and Jerusalem (with the yummy icing of the total fiasco hamfisted clumsy way in which it was handled, managing to Piss Off and Disgust, literally, every band on the ideological spectrum- the Godless Heathens know they had the votes to defeat the measure but were screwed over and ignored and humiliated and Godfearing Real America not at all fooled by the cosmetic repair to the platform.)
Priceless.........

3- Obama's limp speech, confirming the impression of inadequacy created by Bill's boffo performance and hinting at the job numbers to come....

4- the truly frighteningly GRIM job numbers that rushed in before the hangovers were even gone mocking the Democraps party.

damn. You couldn't make up stuff this good.......

Posted by *Hic!*]]> Sat, 08 Sep 2012 05:34:28 -0700 The Stranger
The distributor sells a bottle of 750ml to the retailer for $10. The retailer marks the bottle 20.5% (I will tell you later why I choose this value, but it could be anything) making that bottle $12.05. This is called Listing Price.

Retailer is required by law to sell the bottle with added taxes of SST (Spirits Sales Tax) of 20.5% and SLT (Spirits Liter Tax) of $3.7708 per liter. For the above example 20.5% SST will be $2.47 and for 750ml SLT will be $2.33. Total taxes will be 2.47+2.83=$5.30.

The total price out of the door will be $12.05+$5.30=$17.35. THIS IS HOW MUCH THE RETAILER HAS IN HIS HANDS.

Now the retailer is required by law to pay 17% of the listing price to WSLCB (Washington State Liquor Control Board), as a retailer fee. This amounts to 12.05*17/100=$2.05.

Also, the retailer is required to return to WA Department of Revenue the taxes collected above (SST & SLT), meaning another $5.30.

Add the retailer fee with the taxes and the retailer has to pay $7.35 "to be in business".

He got $17.35 from the consumer, but the retailer has to pay $10 for the goods (to the distributor and $7.35 to the state (for the taxes). HOW MUCH IS LEFT? ZERO, NADA, NILL.

In this process, the retailer transfer a bottle of $10 from the distributor to the consumer, marking the product 20.5%, the state gets $7.35, and the retailer gets ZERO. Imagine how much more he needs to markup the product to cover his costs and pay the taxes. A lot more than 20.5% (which only pays for the taxes).

Welcome to Washington State Privatization. It was not supposed to be like that. It supposed to be free market and competition. None of these are happening now. There are just a few distributors, some with exclusive rights.

Those taxes above are from 10 RCWs, everyone coming with another level of taxation. Maybe more are coming.
Posted by vernon5]]> Fri, 07 Sep 2012 20:44:45 -0700 The Stranger
Define minor, define easy, define prompt. The legislature can amend a law passed by initiative after two years. So yes, it's a bad law, but the existing one wasn't any good either. Instead of accepting that that was never going to change because the legislature would never act, I was and am OK with having a bad law in place for a couple years, after which the legislature can hopefully get it right.
Posted by topbrian]]> Fri, 07 Sep 2012 13:36:29 -0700 The Stranger this you?
Posted by Fnarf]]> Fri, 07 Sep 2012 12:28:56 -0700 The Stranger Posted by thatsnotright]]> Fri, 07 Sep 2012 11:55:13 -0700 The Stranger Posted by Cato the Younger Younger]]> Fri, 07 Sep 2012 07:08:37 -0700 The Stranger Posted by Tawnos]]> Thu, 06 Sep 2012 22:47:43 -0700 The Stranger
All of this will help the exodus out of WA state proceed apace.

Posted by Supreme Ruler Of The Universe]]> Thu, 06 Sep 2012 21:44:03 -0700 The Stranger
After I-1183 passed, it's bad because the the state collects too many taxes from the privatized liquor industry.

The only cautionary tale I see is that legislatures should act before the people vote in a flawed privatization initiative written by Costco.
Posted by madcap]]> Thu, 06 Sep 2012 21:36:17 -0700 The Stranger
The comment reminds me of being in England and traveling with a gaggle of friends to France in order to purchase, in bulk, less-taxed booze and wine for personal consumption. I learned to love France on these trips and its very proud and wonderful people. The hangovers during the return to Blighty were unfortunately memorable.
Posted by Fairhaven]]> Thu, 06 Sep 2012 21:11:34 -0700 The Stranger
This doesn't prove that privatization doesn't work. It proves that needless taxes are needless.
Posted by long-time reader]]> Thu, 06 Sep 2012 20:10:10 -0700 The Stranger
I'm not doing good research at all, but around $20-21 is the usual.
Posted by bipppp]]> Thu, 06 Sep 2012 19:12:35 -0700 The Stranger Posted by publicadministrator]]> Thu, 06 Sep 2012 18:07:34 -0700 The Stranger
Bullshit. A big part of that increased price is the 10% levy on the distributors, which you've conveniently left out of your analysis. And it's not just 10% - if the money from that tax does not equal or exceed a total of $150MM by this April, distributors are on the hook for the difference. Almost all of that information is contained in the very post you're commenting on. Jesus. Innumerate indeed.
Posted by Reader01]]> Thu, 06 Sep 2012 17:48:14 -0700 The Stranger
@11 Those state employees salaries were definitely funded by liquor sales revenue and not by tax revenue.


Posted by ItsAllOverNow]]> Thu, 06 Sep 2012 17:30:07 -0700 The Stranger
A bottle of Beam? Before the law, it was $18.95 at the state store -- $13.38 retail price plus $5.57 liquor taxes (as stated in my May price sheet). That's 20.5% sales tax (or $2.74) plus 0.75 times $3.77 per-liter tax (or $2.83).

The tax did not go up with the law. The exact same 20.5% plus $3.77 per liter tax was there before.

Wine World's website is quoting a price of $17.95 for the same bottle. That's retail price; what you will pay at the register is $17.95 plus $3.68 sales tax (20.5% of $17.95) plus $2.83 (.75 of $3.77, same as before). Grand total: $25.40.

That's an increase of 34%, or $6.45 -- but ALL of that increase is due to the increased retail price, not tax increase. The tax did go up, but that's because it costs more, so you pay more sales tax.

The retail price increase isn't 18.95-->25.40; it's 13.38-->17.95. Unfortunately, most shoppers (and Slog commenters) are innumerate, so instead they see "Dag nab it, the price went DOWN from $18.95 to $17.95, but all them taxes!"

Which is wrong.

Posted by Fnarf]]> Thu, 06 Sep 2012 17:28:34 -0700 The Stranger Posted by wxPDX]]> Thu, 06 Sep 2012 17:19:54 -0700 The Stranger Posted by internet_jen]]> Thu, 06 Sep 2012 17:16:10 -0700 The Stranger
So how much does it cost before and after 1183 to buy a bottle of liquor or a six pack of beer after tax? Say, a regular 750ml bottle of cheap bourbon, like Jim Beam? Or a six pack of Corona?


Posted by bipppp]]> Thu, 06 Sep 2012 17:06:45 -0700 The Stranger
You naysayers are right, though. The legislation would never have gotten around to it. It was too controversial without a public vote. Which is unfortunate, because if they had, it would have gotten a better, more fair, law.

As an aside, why haven't we received another upper-end income tax law again? This would be a better year to do an I-1098, as liberals and poor people tend to vote more in presidential years than off years. Of course, it was a spectacular fail, but it was still a fail, in part, of timing.
Posted by TheMisanthrope]]> Thu, 06 Sep 2012 16:56:15 -0700 The Stranger Posted by Fnarf]]> Thu, 06 Sep 2012 16:55:32 -0700 The Stranger
@13, I'm positive I saw Ramazzotti at Wine World. Maybe they were out. Maybe I got the last bottle!

@17, if you can't handle the jacked up prices on single malts, give Black Bottle a try -- it's a blend, but I believe it contains all seven major Islay malts (no Kilchoman), and it really expresses the heart of Islay tang -- plenty of smoke. It's not Lagavulin, but it's pretty damn good, and it's only $26 (plus tax) at Wine World. Another good Islay-based blend for cheapskates is White Horse, but WW doesn't have it; I dunno who does (I only ever saw it at Greenwood and West Seattle in WSLCB days).

I'm still mad that my beloved Zaya rum DOUBLED IN PRICE, and no, I'm not going to let it go.
Posted by Fnarf]]> Thu, 06 Sep 2012 16:42:53 -0700 The Stranger
awesome

what makes you think I want to live like that?
Posted by DeaconBlues]]> Thu, 06 Sep 2012 16:37:19 -0700 The Stranger Posted by shotsix]]> Thu, 06 Sep 2012 16:30:17 -0700 The Stranger