The state Senate has proposed to raise the cost of alcohol in bars while possibly lowering the tax on items in liquor stores for licensed establishments.

Molly McGowan, spokeswoman for the Pennsylvania Liquor Control Board, said there is a proposal to add a 6 percent tax to the cost of drinks in bars. In addition to this increase, she said that when licensees purchase alcohol from a state store, they may get an 18 percent discount on sales tax.

She said the Johnstown Flood Tax is the source of the 18 percent tax on alcohol purchased in state stores. It was implemented on alcoholic beverages in 1936 to help defray the cost of the flood, but the cost was covered within about two years. That 18 percent tax is still charged in state stores and enters the state's general fund.

Hal McCullough, owner of Café 210 West, 210 W. College Ave., said he does not support the possibility of a new tax on bars.

"So much of the money spent on alcohol is tax," McCullough said. "So putting a tax on a product that is already so much tax is essentially taxing a tax."

He said the state made about $300 million in alcohol sales alone last year.

"If the state drops the flood tax, then they will need to find another way to receive that revenue," McCullough said.

State Rep. Kerry Benninghoff, R-Bellefonte, said Pennsylvania has received an unexpected $9 million windfall from the federal government and should use those funds instead of taxpayer money to offset costs.

"This proposal is ridiculous," he said. "The state makes a significant amount of money on alcohol already."

Joe Shulman, general manager of The Gingerbread Man, 130 Hiester St., said it is unfortunate that customers may have to pay more for alcohol, especially students.

"It may not matter too much for lower-priced drinks, but for drinks that cost seven or eight dollars, this can add up," he said.

Duke Gastiger, owner of the All American Rathskeller, 108 S. Pugh St., said he does not see the tax being a problem for his business because of State College's central location within the state.

"If you live in Philadelphia, you can go to New Jersey to avoid paying a tax. If you live in Pittsburgh, you can go to Ohio and not pay a tax. Bars in State College are in the middle of Pennsylvania, so there is no close competition," Gastiger said.

Bryan Yuhas (freshman-engineering) said he would not be disappointed if the tax is implemented.

"As long as it isn't too much, it really doesn't matter to me," he said.

Christina Perogine (senior-animal science) said the taxes in her home state of New York are higher than they are here, but she would still be upset if she had to pay more.