THE STATE OF NEW YORK TO APPLY A “PAVEMENT TAX” ON WINE AND BEER: AN UNFAIR TAX ON STORAGE OF ALCOHOLIC BEVERAGES IN ONE OF THE MOST IMPORTANT ECONOMIC CENTERS IN AMERICA

Albany is the capital of the State of New York but the most important center is defintely New York City, which is about to impose a “pavement tax” on all of the wholesalers and stores that sell wine and beer. This tax is a “fiscal crisis breaker” that went into effect on May 1st. It will be applied to all wine and beer in storage in warehouses and shops and, according to the “New York State Liquor Stores Board” will cost 32.7 cents for each gallon inventoried.
The tax will affect all wine and beer stores and warehouses in the New York area. It will have a particularly negative effect on businesses like Zachys that have some of the largest wine warehouses in the state. At the same time, an increase of 30 cents per gallon in excise duty will be introduced.
According to the British web site Decanter, who reported the news, this is a clear example of how New York Governor David Paterson is trying to cope with the hole in the state budget by taxing the easiest targets.
Shops will be forced to have big sales before May 1st to decrease their stock, and will not be willing buy other goods at the moment. They, however, will risk having to pay taxes twice on products already purchased. According to the newspaper “USA Today”, New York currently has a deficit in its budget of 14 billion dollars.
One battle was won recently by winery owners: last week the legislative body of the State of New York refused supermarkets such as “Costco” the right to sell wine and also included 19,000 other selling points; such as gas stations, delicatessens, mini-markets and grocery stores.
If the new tax goes into effect 1,000 liquor shops will shut their doors causing 4-5,000 lay offs. The New York State Senate has already approved the fiscal plan and now it will go to Governor Paterson for ratification, which should happen shortly.