Liquor, beer and wine: Get ready to pay more as state tax hike kicks in

Customers at Lonnie's Liquor have been buying more beer and liquor than usual lately, and that is likely because of a tax hike rather than a party.

"I sold a lot of liquor on Friday and Saturday," said Ken Coonley, who owns the Collinsville store. "People who were coming, instead of getting one bottle, they would buy two."

He said patrons were buying more before a higher state alcohol taxes go into effect today. The state is increasing the taxes on beer, wine and liquor in effort to raise millions to repair roads, bridges and schools. A pending a lawsuit filed by Chicago liquor distributing company president and Chicago Blackhawks owner Rocky Wirtz to block the increases seems unlikely to halt the rate hike.

Distilled spirits will be the hardest hit. The tax one-fifth gallon bottles will go up from 90 cents to $1.71. Wine will be taxed at 28 cents a bottle, up from 13 cents. Beer will be taxed at 13 cents for a six-pack, up from 10.4 cents. Coonley said that will mean about 50 cents more for a case of 30. He fears that his customers could go across the Mississippi River for cheaper alcohol.

"What's probably going to hurt me the most is people now go over to St. Louis to buy gas and cigarettes. Now, this is just going to be one more thing that they're going to buy over there," Coonley said. "Now you can get your liquor over there, too."

Customer Jim Haller admitted that he would consider going to Missouri, but not over a matter of 50 cents.

"I won't make a special trip for 50 cents," the Collinsville resident said, after paying for a case of beer at the drive-through window of Coonley's store.

"It probably won't impact us much," his wife Gail said.

Robert Nichols also does not plan to change his ways. The 80-year-old retired Collinsville postal worker said he has been coming to the store since it opened in 1961. Coonley has owned the business, which also has a bar in the back, for the past 20 years. Because he holds a Class A liquor license with the city, Coonley can both sell and serve beer. Nichols says he comes to sit at the bar for a bottle of Stag beer and will buy a 12-pack to take home.

"The doctor says it has less sugar in it," Nichols said.

Downtown, Jerry Dallape is not only concerned about the liquor tax, but the tax on candy as well. His Dean's Liquor store in Collinsville also sells candy, which no longer will be taxed at the lower food rate, but at the higher general merchandise rate. Grooming and personal hygiene and canned beverages that contain tea or coffee are also being taxed at the higher rate.

"I think it's going to affect business," Dallape said. "That's the most important. (Customers) are probably going to downsize and buy smaller sizes or going to buy less expensive alcohol."

"Beer won't affect a whole bunch. It's the hard liquor. Wine, I don't think will be affected. Hard liquor is going to be affected."

Len Scaturro said the increase will affect on his business, Crushed Grapes Ltd. in Edwardsville, but is something he can live with for a while. He said that as long as distributors do not take a price increase on top of the tax increase, consumers should not get hit too badly. Scaturro said he plans to keep his prices the same as long as possible.

But Rick Taylor, owner of Olivia's Wines & Gifts in Fairview Heights, said distributors are taking advantage of the tax. Last week, both Anheuser-Busch InBev and MillerCoors announced that they will be increasing the prices of their beer this fall.

"As a wine store owner, I don't think this is right," Taylor said. "They're stepping on the tax."

Randall's Wine & Spirits, also in Fairview Heights, will hold on to its previous tax rates through Sunday. Owner George Randall said he saw a 40 percent spike in business over the weekend. Randall, who also has a liquor store in St. Louis, said that a bottle of vodka is now $5 higher in his metro-east store. He thinks the added expense may force more potential buyers to turn to the Internet to buy wine and force smaller liquor stores out of business and others to cut inventory.

"As a business person, I'm alarmed," Randall said. "I think the consumers should be outraged."

But as long as the beer is still ice-cold and pouring, customers like Nichols will be buying it.

"What are you going to do?," Nichols said after pouring his beer into a plastic cup. "As long as it's there, I'll take it."