Colorado alcohol tax proposal combines bad politics, bad policy | OPINION


A bad idea with bad timing often fails. I’m hopeful the new alcohol tax that’s being floated as a “fee” by Sen. Kevin Priola and Sen. Chris Hansen fits those criteria, because as far as Colorado’s bars and restaurants are concerned, this proposal couldn’t be a worse idea and legislators should vote no.
There are many reasons why this proposal is wrong for Colorado, but let’s start with the most obvious. Despite what the authors say, this is a tax, not a “fee,” and as such it should be voted on by the people rather than hashed out in some back room. It’s clear the bill authors are trying this approach because they know it won’t receive popular support.
And the numbers bear that out. A recent poll by Nelson Research showed Colorado registered voters rejected this legislation, with 58% opposed and only 26% in support. Voters also saw through the plan to label this tax as a “fee” to avoid a popular vote and disapproved of that approach by 61% to 21%.
Stay up to speed: Sign up for daily opinion in your inbox Monday-Friday
Additionally, when looking at what the policy would do it’s clear this tax is the last thing bars and restaurants need right now. For the last four years it’s been one hurdle after another. First, we had dining restrictions. Then, there were ingredient and supply shortages. Once those started to decline, we had inflation take off. All these costs keep adding up, and, in a slim-margin business like ours, it doesn’t take much to go from profitability to being underwater.
That doesn’t even take into account our largest expense: labor. The state constitution requires the minimum wage to increase every year. After years of lower-than-usual customer volume and ever-growing labor costs, we’re at the limit. Even those allegedly small changes to the cost of goods can upset our ability to stay open.
Our customers’ tastes are also changing. Draft beer, which is one of the ways we can differentiate ourselves from our competitors, is taking a beating.
Additionally, cannabis is more popular than ever in our state, and the tax revenue it brings in already exceeds the state’s alcohol tax receipts. It makes more sense for a campaign seeking funds for prevention programs to target the substance growing rapidly. Additionally, since many cannabis consumers are tourists, this revenue wouldn’t come from the pockets of our hardworking friends and neighbors.
Supporters say this tax is so small no one will notice. Well, someone will have to pay the cost, and ultimately it makes its way to the consumer. If we continue to take the “a little bit here, a little bit more there” approach, eventually there will be nothing left.
Brewers of all sizes call Colorado home. As noted in USA Today, Fort Collins is known across the country for its beer culture. Part of that is because of the friendly business environment we have here. Adding new taxes undermines that. The bill’s supporters say this tax only targets large brewers, but if they’re successful at turning a tax into a fee for the big guys, what’s stopping them from going after the little guy next?
Lastly, let’s look at where the existing tax money goes. If you said all or most of it goes toward the treatment programs the sponsors want to grow, you’d be wrong. As currently constituted, alcohol taxes contribute very little money to those causes. If these treatment programs are as important as they say, surely some portion of the current tax dollars could be diverted to that instead of going into the general fund, which they do now.
Every evening after closing we run our reports and get confirmation of whether we had a good or bad night. Great nights have been difficult to come by these last few years. If alcohol and other prices continue to go up, and they certainly would under this bill, many bars and restaurants that are hanging on may have to close forever.
Mark Berzins is the “lead dog” at the Little Pub Company, which owns and operates neighborhood bars, including Denver’s renowned Don’s Club Tavern and Icehouse Tavern.