Some State College politicians are restarting the effort to allow local governments to tax poured alcohol in bars and restaurants, which could bring in big bucks for the borough.
Mayor Elizabeth Goreham and borough council member Don Hahn traveled to Harrisburg on March 8 to show their support for the drink tax and three other revenue options proposed by the Pennsylvania League of Cities and Municipalities (PLCM).
As alcohol-related needs and services consume half the borough's budget, Goreham said she would support the proposed drink tax, which would add 10 percent to the purchase price of poured alcohol.
While she doesn't think the tax would limit alcohol consumption, it would help the borough address the costs of police services and clean-up crews.
"It would not discourage people from drinking," she said. "If it did, it's not a bad thing."
The PLCM, an advocacy group for towns, cities and boroughs in Pennsylvania, rallied for four initiatives during the visit: a property tax relief act, an expansion in the local share of sales tax, local reimbursement for tax-exempt properties and the option of a local tax on liquor.
Goreham said local governments need more revenue sources. Many municipalities have already been forced to declare bankruptcy, she said -- a fate she says all municipalities will eventually reach if changes are not made.
Borough Council President Ron Filippelli, who supports all four measures, said a drink tax "would be excellent for State College."
But Hahn, an at-large representative for the PLCM, said the tax might not be what the borough needs. While wants local governments to have the right to enact such a tax, he'd be wary to implement it in State College.
"Just because we can do it doesn't mean we should," he said. "The problem of having a drink tax is it tends to hit certain types of drink establishments harder than others. A drink tax as applied to State College would certainly have an imbalance impact and not necessarily the most beneficial impact to town."
The tax would have no impact in reducing alcohol consumed outside of bars, he said.
Local politicians who support the tax will have to wait until legislation allowing them to enact the tax passes in the state legislature. As lawmakers haven't shown any interest on the issue, the drink tax will remain just an idea for the foreseeable future, Goreham said.
Representatives from the borough will continue their efforts to protect local governments this week, as they attend the National League of Cities and Municipalities in Washington, D.C.
Goreham and Hahn, along with council members Silvi Lawrence, Theresa Lafer and Peter Morris, will discuss the needs of local governments with representatives on Capitol Hill. The State College contingent will meet with Rep. Glenn Thompson, R-5th District, on March 17 and will also be speaking with Sen. Bob Casey, D-Pa., during their visit.
While many municipalities are in need of these reforms, State College is economically sound for the time being. But that may not always be the case, Filippelli said.
"Our budget is very tight," Filippelli said. "Looking ahead to the next few years, we are going to face increased difficulties."
