Champaign Council Rejects Liquor Tax Plan

The Champaign City Council has reversed course on plans for a four-percent tax on package liquor.

The plan to raise revenue was unanimously rejected after hearing from a number of business owners.

A few weeks after approving it in a six-to-three vote, the city council shot down the plan during Tuesday night's study session nine-to-nothing. The proposal was seen as a way to restore funding for three positions at the police department, and overnight hours at the front desk.

But liquor store owners say it is unfair to single out one industry to save those jobs. Sun Singer Wines owner Mark Yarbrough said it is not a question of whether he would lose business to neighboring Savoy, but how much of it. He said the tax would take a lot of work to implement.

"There's a lot of unseen and mitigating circumstances that say this is a hasty rush to judgment to pass this tax without thoroughly studying it," Yarbrough said. "And I believe it would take many study sessions in order for you to have a comprehensive understanding what is actually going on here."

Council member Karen Foster suggested the tax last month, but she said she did not anticipate the opposition. Mayor Don Gerard said he was simply looking for something to fulfill a campaign pledge to fund the police jobs, but the vote Tuesday was simply about the tax.

"As I've said all along, I don't like taxes. I don't want to do a tax. My point is retaining the services to the public," Gerard said. "And I was very heartened with the fact that most of the responses agreed and concurred that they, too would like to see the police station overnight. They just don't want to be taxed on their liquor."

Gerard said city may have to transfer existing funds, but will continue to look at new revenue sources. Council members expect to discuss those revenue sources by next month, after voting on a budget plan next Tuesday.