Pennsylvaniataxpayers won an important fight with the state’s Liquor Control Board (LCB)yesterday, when the powerful state government agency that administers the state’sliquor store monopoly and liquor licenses for thousands of bars and restaurantsin the Keystone State announced that it would shelve a planned “handling fee” increase. The plan, which wouldhave raised prices between $1 and $1.50 per bottle, was supposed to go intoeffect January 4 but has been delayed until June 30, 2011. Further, the LCBannounced that it would not increase any other fees on liquor sold during thistime.
This would havebeen the first time in 17 years the LCB raised fees for marketing and logisticspurposes. If the plan had been approved, restaurants, bars, and their patronswould have felt the new handling fee through higher prices for drinks. Giventhe poor state of the economy in Pennsylvania, raising prices on consumers isthe last thing the government should be considering. Cleary, the LCB got themessage because the outcry against the fee increase came from restaurants andbars, who would have suffered under this proposal.
Over the nextsix months, the LCB, Governor-elect Tom Corbett, and the new GOP-controlledstate legislature will have some time to consider reforms to the state’s liquormonopoly to save taxpayers money, perhaps even a proposal to privatize thestate’s 640 liquor stores. Regardless of what reforms they pursue, one reformthey should not pursue is increasing fees on hard-working Pennsylvanians.