Champaign council rejects package liquor tax

CHAMPAIGN — A plan to tack a 4 percent tax onto package liquor sales failed in a city council straw poll Tuesday night after business owners spent weeks publicly expressing their dissatisfaction with the proposed surcharge.

Six city council members’ minds changed — last month, the council voted 6-3 to begin talks on the new liquor tax only seconds before they voted to restore three jobs at the police department’s front desk. But that vote turned into a unanimous decision against the proposal on Tuesday.

 

The vote puts an end to discussion about the new tax for now, but the council will still need to find a way to pay for those three front desk jobs. Council members will revisit that issue in July, when they could choose to eliminate the jobs or find a different funding source.

 

Karen Foster, who was the first council member to propose the 4 percent liquor tax in May, said it was the disapproval from business owners that changed her mind.

 

“From that time when it was first proposed to tonight (Tuesday), the troops rallied,” Foster said.

 

Foster said she “agonized” over where to find money for a tight city spending plan.

 

“It was only my intention to find a revenue source that would keep our front desk and our police department lobby open 24/7,” Foster said.

 

Mayor Don Gerard originally voted in favor of the 4 percent tax. He said that, at the time, it seemed like the lesser of a number of evils. Throughout his campaign this spring, he repeatedly said he would work to restore police front desk jobs, and he took office only weeks before he initiated the straw poll to do so.

 

“Two weeks into my administration, I was faced with keeping a campaign promise,” Gerard said.

 

He said he is still in favor of retaining the jobs at the police department’s front desk, but how the city will pay for it is now up in the air.

 

“My point is retaining services to the public,” Gerard said.

 

Before the vote, business owners took to the podium to express their disapproval as they had been doing in recent weeks. They have said the proposal to tax

package liquor is unfair because it applies to a very specific industry.

 

“You are going to put us at a very unadvantageous position,” said Jack Troxell, who owns the local chain of Piccadilly stores. “We’re not going to be competitive. You’re asking us to charge more tax. That raises the price.”

 

Some said the city needs to look to cut spending, not add revenues, even though city officials have cut millions in spending as the economic recession has taken hold within the past few years.

 

“You’re saying you had to make cuts,” Troxell said. “So has every businessman in this community.”

Comments

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Yatiri wrote on June 14, 2011 at 11:06 pm

It was gratifying to be able to watch the meeting on the public channel. I would suggest that the NG upload the video for all.

Gerard's campaign promise was to keep the police service representatives on the payroll without increasing tax revenues. Yes, that was the complete promise which of course he cannot keep.

At best this was wishful thinking on his part, but more likely it was simple political manipulation. We all know that revenue must be increased after years of leadership from a birther who didn't have the vision nor foresight to plan ahead. This is what political ideology does, it blinds one to sensible solutions.

For me it was entertaining to watch the politicians flip-flopping like tuna on a fishing boat deck.

Gerard is obviously a rookie in waters above his head.

LaDue impressed me, wish he were mayor. He seemed to have the stability and understanding and wisdom to lead.

It is frustrating to get rid of a bad birther, only to now have a rookie from the other party.

It is time to support people who are competent and experienced, regardless of their party affiliation.

We all know that the city needs more tax revenue. Let us find the most equitable and fair tax on all citizens regardless of the political cost.

The dems and repubs are the same, political cowards blinded by party allegiance and ideology.
We need competent managers and leaders, not politicians.

Patrick Wade wrote on June 15, 2011 at 10:06 am
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Thanks for the suggestion, though we typically do not upload the council videos. However, the video will be available on the city's website (click this link to go there) within the next few days.

BigTenFan wrote on June 15, 2011 at 7:06 am

Both Champaign and Urbana should see a rise in their tax receipts for the last quarter of this year. The 8 home Illini football games should bring in the extra revenues desperately needed for both city governments. In the past few years, I believe we have had only 5 Illini games at Memorial Stadium.

read the DI wrote on June 19, 2011 at 9:06 pm

wtf? Why is the Gazette deleting all the comments?

Yatiri wrote on June 21, 2011 at 6:06 pm

The NG routinely deltees posts and even blocks all commentary on stories of their choosing. I posted a topic about this Censorship in the discussion forum. Basically you just have to deal with it and be very careful not to say anything too inflammatory,

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