Alcohol privatization takes center stage at Capitol

HARRISBURG— To privatize or not to privatize? That is the question at the state capitol. One Republican representative plans to unveil legislation that would take Pennsylvania out of the liquor business.

Right now, when you go into a Wine and Spirits store, you pay an automatic 30 percent markup on whatever you are buying from a $6 bottle of Pinto Grigio to a $60 dollar bottle of Cabarnet Sauvignon. That could change if the stores are owned by private companies. But not everyone is on board with the big money proposal.

It's a debate dating back to the 1970's and once again the alcohol privatization issue is heating up at the State Capitol.

"We have a looming fiscal crisis and people don`t want their taxes raised. They want us to think outside the box," said Representative Mike Turzai, House Majority Leader, after making the pitch for alcohol privatization last March.

That outside the box thinking is leading Representative Turzai to unveil legislation to privatize wine and spirit sales later today. Turzai spearheaded the charge on a similar measure during last session. That bill called for the state to sell off both its wholesale and retail operations to private bidders.

"That would bring in $2 billion to the state of Pennsylvania up front to help us solve our fiscal crisis," Turzai said.

That $2 billion number was last session's estimates. Turzai's plan this time around is expected to be similar. The proposal calls for the sale of Pennsylvania's 650 wine and spirits stores. Those licenses would be combined with a bunch of wholesale licenses. Turzai would then call for a series of gallonage taxes, combined with relicensing fees, to make up for the annual income lost by the sale and privatization of the alcohol business.

"We think consumers will have better convenience and lower prices and better selection. We think that' s a win. Then we can address the fiscal crisis ahead of us without raising taxes," said Turzai.

Opponents say this is no time to change a guaranteed revenue source. Pennsylvania charges over 50 percent in taxes on its wine and spirit, brining in hundreds of millions of dollars. On top of that, thousands of Liquor Control Board jobs could be at stake if private buyers take over the system.

Governor Tom Corbett says he thinks Pennsylvania should not be in the liquor business but he has not thrown his support behind any plans yet. A big factor could come at the end of this month when a commissioned report on privatizing alcohol sales is scheduled to be released.

Representative Ron Miller, (R) York County is asking people their thoughts about privatizing alcohol sales. Click Alcohol Privatization survey, to take part in the quick survey.