Business Owners, Former Elected Officials, Oppose Champaign Liquor Tax

Owners of Champaign liquor stores say it's unfair to target one type of business in order to save three positions at the city's police department.

During last night's informational meeting on the suggested 4-percent tax in package liquor sales, those who run stores like Colonial Pantry and Sun Singer say the tax will hurt business, and drive their customers elsewhere.

And Picadilly Beverage Shop owner Jack Troxell claims enacting the tax will force layoffs.

"We're not in a high-margin industry," Troxell said. "We're in a volume industry with low margins. And that's the way it works. If your business drops off, you don't need as many employees. And when that happens, they don't have the same hours, and you can't afford to pay them."

Kam's and Pia's owner Eric Meyer said the liquor tax unfairly singles out an entire sector of business for just one cause. Meyer, who's also the Vice President of the Illinois License Beverage Association, suggests a tax closer to one percent.

The city council tentatively backed the liquor tax last month in order to avoid losing jobs, and ending overnight hours at the police department's front desk. Former Mayors Jerry Schweighart and Dan McCullom criticized the quick manner in which the council proposed the liquor tax. McCullom labeled it 'seat of the pants' decision making without time for deliberating, and Schweighart said when the city council quickly gave the tax their initial support, members abandoned a budget process he'd been working on the council with for months

Mayor Don Gerard, who defeated Schweighart in April's election, said he will consider other revenue proposals, but his intent is saving jobs.

"As the agenda was lined up that night, it was both or neither (the liquor tax and police cuts)," Gerard said. "So we had no choice. Now we can table this until July if we want, and we'll continue to discuss it, but as far as the hullabaloo from the former mayors about the manner in which I do things, well, I just do it a little diffferently, I guess."

The tax is expected to bring in $700,000, well over the $200,000 necessary to restore the police positions. The funds could also go to restore overtime at fire station 4 on Champaign's west side. The liquor tax is the focus of a study session next Tuesday, while business owners suggest different revenue streams, including a hike in the overall sales tax.