PA: Drink Sales Rising At Philly Establishments, Contributing To Alcohol Tax

CBS Philly

By Anita Oh

July 7, 2016

PHILADELPHIA (CBS) — The demand has been bubbling. The owners of popular Philadelphia establishments, like McGillan’s Olde Ale House and Uptown Beer Garden, say they’re selling more beer and liquor than in years past.

“There’s just been an explosion of tourism in the city,” said City Controller Alan Butkovitz. “We’ve been growing double-digits. Lately, it’s been very, very busy,” said Chris Mullins, the owner of McGillin’s.

The 10 cent tax on each alcoholic drink sold it making its mark, Butkovitz added.

According to numbers from his office, revenue from liquor by the drink tax alone is flowing freely, up $22 million in the past five years.

City officials say that’s about five million more pints of beer that have been sold compared to 2011. That’s enough to fill up an Olympic-sized swimming pool.

The tax must be paid by any establishment that sells alcohol by the drink such as hotels,restaurants, bars and some caterers. “It as hard after the tax was enacted,” Mullins said. “We didn’t want to pass that cost to our customers so we’ve completely absorbed that cost.

Money raised from taxes on alcohol, cigarettes and real estate, among others, contributes to the Philadelphia School District, which collected $1.1 billion from local tax revenues in the last fiscal year.