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Local wine, spirits buyers won’t find Kentucky such a bargain anymore
Kentucky lawmakers and governor have boosted taxes on wine and spirits as part of a deal to balance the state’s budget.
Legislators’ decision to apply a 6 percent state sales tax to all wine and spirits sold by the bottle will almost certainly make it less likely Ohioans will find the same kinds of bargains south of the border that they might have found before.
Unless Ohio law has changed, it is technically illegal for Ohioans to cross the border and stock up on large amounts of beer and wine in Kentucky, then turn around and drive back into Ohio.
But of course, it happened, and frequently. Kevin Keith, wine buyer for Liquor Direct Wine & Spirits in Covington and Fort Thomas, KY, and a Wine Blogger himself, commented on the My Wine Education blog that 80 percent of his store’s business comes from Ohioans crossing the border, and the tax increase will “induce the Ohio shoppers … to remain in Ohio and spend their money there.” (Click here to read the full text of Kevin Keith’s comment and Michelle’s blog entry).
Dayton-area wine retailers say their prices overall are no higher, or not much higher, than Kentucky’s, although Kentucky’s open pricing system allows its retailers to discount wines and spirits of their choosing as “loss-leaders” while Ohio forbids such practices through mandatory price markups.
And of course, this newer, seemingly more level playing field could change when Ohio’s lawmakers start the hard work of balancing the state’s two-year budget. Will they also consider a “sin tax” hike to raise tax revenues as their counterparts in Kentucky did?
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Comments
By Linda
February 23, 2009 9:07 AM | Link to this
As an Ohio microdistillery (in Cincinnati), this is definitely going to hurt us. I was recommending customers to Ky because our bourbon was $20 cheaper there. Here in Ohio, the taxes double the cost. Now that could get worse - especially if Ohio raises taxes again. This past summer when we (Woodstone Creek) got the law changed to be able to sell our own spirits from our own gift shop, one of the things we desparately wanted was the ability to sell tastings. For their own convenience, Ohio Liquor Control made us a “liquor store”. (Since we’re the only producing micro in Ohio - they probably didn’t want to upset the balance of paperwork power!) We didn’t get the tastings because they don’t allow tastings in liquor stores. We still believe it would add to the state’s coffers if they relaxed this rule. Just think how many bottles of premium spirit would be opened all over Ohio if liquor stores did tastings - just like wine. Now that Ky will raise prices, there will probably be an increase in Ohio sales. However, I still believe it will be a better deal in Ky, especially for Cincinnati residents who don’t have to go that far - they’ll just need to compare prices more carefully . We’ve been courted by out-of-state distributors and were discouraging the likes of California and Colorado because of our limited inventory. However, when I heard about this - I called them. The upshot of Ky’s decision could be more Ohio Bourbon will be sold in San Francisco than Cincinnati. Dontch just love it?
By k2
February 22, 2009 7:43 PM | Link to this
Mark,thanks for the comments. Michelle actually asked me to respond to one of her commentors, knowing that I’ve been vigorously fighting this thing for weeks now. I’ve even started a petition online to recall Governor Beshear and the senator who can be blamed for this mess here in KY, Elizabeth Tori. It’s got us all worried, yet we know that the job now will be to continue our aggressive pricing so that we can stay in business. The reasonable argument is that the state should have made all 120 counties “wet,” but it seems the bootleggers downstate have a serious hold over our government here (or so I’ve been told). With many other states (including California) working on the same thing though, I fear Ohio isn’t that far behind us.
By Old Bus
February 22, 2009 5:03 AM | Link to this
Richmond is the place. They arrested Ohio ATF agents spying on Ohio residents buying booze and smokes in Indiana. Kentucky is to much a pain to get to with all the traffic.And its not aginst the law to smoke in Indiana.
By reality
February 21, 2009 9:17 PM | Link to this
Doesnt really matter. People will buy their drug of choice (alcohol in this case) no matter the price or risk. Gov’t should stay out of it.
By reality
February 21, 2009 9:17 PM | Link to this
Doesnt really matter. People will buy their drug of choice (alcohol in this case) no matter the price or risk. Gov’t should stay out of it.
By jon
February 21, 2009 5:07 PM | Link to this
Nobody went to Kentucky anymore. We all changed to Indiana. We stop and get our cheap booze after we go gambling! Please pass a reasonible gambling package! Look at the facts!
By tbill
February 21, 2009 2:50 PM | Link to this
I know of people who would drive to Richmond, IN to save a little on beer. That was years ago, and I can’t imagine it’s worth the time and money to drive that far. Plus, it’s always been illegal to buy more than a few bottles and cross the state line. People have nothing better to do with their time, drive 100 miles, and for what? To save a couple of bucks? It’s like sitting in line for gas that’s a few cents cheaper. Not worth it!
By K
February 21, 2009 9:00 AM | Link to this
The additional 6% would most certainly deter any reason to make the trip.
By Steve
February 21, 2009 3:35 AM | Link to this
Ummm, hello there’s still Indiana. Duh, it’s called the tri-state.
By Larry
February 20, 2009 8:39 PM | Link to this
I’ll agree with another poster- I don’t head South for the lower prices- (they’re about the same) I cross the border to get the high end spirits that the Ohio Department of Liquor Control make it impossible to get.
By ecp3886
February 20, 2009 6:02 PM | Link to this
I do not drink. So all this tax means nothing to me. I would like to see a hike in tobacco tax About 25%. People will still smoke. That is where the state of Ohio, could make some real money. Off Peoples addiction to nicotine. Many people smoke because it is cheaper than buying groceries. God I feel for them. I wish they would go to the free food banks. God bless you.
By Wordell
February 20, 2009 4:30 PM | Link to this
I’m passing this on to you all because it worked for me. One way to inner peace is to finish all the things you have started. I finished off a bottle of Merlot, a bottle of Chardonnay, a bodle of Bailey’s, a buttle of vodka, a pockage of Prunglies, tha mainderof bot of Prozic and Valum scriptons, theres of chesescke on a boks a chocolets. Yu haf no idr who fkin gud i fel. Pease sendis orn to dem yu fee AR in nedov inr pece. know knew taks in centeky!!!!
By Yardbird
February 20, 2009 2:52 PM | Link to this
Rummy: Try the Bacardi Amber 80 (Gold Rum). Its a better mixing rum than the white rum. Of course, Appleton and Myers Rums are the best. Even go good together for Mai Tais, Hurricanes, Planters Punches, etc.
By Todd
February 20, 2009 1:23 PM | Link to this
As someone who has lived in Dayton, and now lives in Cincinnati, I have shopped both in Dayton and Northern Kentucky. The prices down here would still be low enough to warrant crossing the river, but I wouldn’t have to drive 1.5 hours to get to it. Someone mentioned that sin taxes are stupid, and in this case even more so. Of the 120 counties in KY, only 29 are actually ‘wet’ counties, and 37 are considered ‘moist’. The other 53 counties will not be paying the liquor tax, as they have no liquor/spirits/beer sales. Fun facts about the bill: Passed on Friday the 13th, and takes effect April Fools Day.
By Ohio $$$$
February 20, 2009 1:06 PM | Link to this
What ever happened to freedom? Freedom of choice to buy anywhere you want. Ohio holds it’s residents hostage to buy highly taxed liquor. That’s the problem with having a State ran Liquor Board. It should be free enterprise.
By Justine
February 20, 2009 12:29 PM | Link to this
David, you said it! Making drugs legal is a great idea for so many reasons: Taxes! Tax the crap out of substances, forcing drug users to pay their share. User Safety. If drugs could be regulated so that they do not contain impurities and they are in standardized amounts, there would be many fewer accidental overdoses and poisonings. Public Safety. Without illegal drugs, we’d see the end of gang violence and drive-bys. Jail Space. Our jails are the most crowded in the world. Why imprison people who have a disease when many are nonviolent? Nobody is going to start using drugs just because they aren’t illegal. Most people don’t smoke anymore because they know it’s unhealthy and expensive. Your average responsible adult is NOT going to try heroin just because it won’t result in an arrest. Of course, private businesses could still retain the right to require drug testing for employment (just like they can choose to have “smoke free workplaces”).
By Rummy
February 20, 2009 11:52 AM | Link to this
I’ll still make the trip down to Newport and Covington to pick up high-end spirits that I can’t buy in Ohio, such as Appleton 12-year-old rum. Ohio is fine if you like lighter fluid (i.e. Bacardi), but you’ve got to head south of the border for the good stuff.
By David
February 20, 2009 10:44 AM | Link to this
You know what else opens up opportunity for smuggling and the black market? Making drugs illegal. Imagine the amount of money we could save if we didn’t waste money imprisoning drug users. Imagine the amount of taxes we could save if we collected taxes on the sale of drugs.
By Mikey F Baby
February 20, 2009 10:41 AM | Link to this
they’ll continue to raise the tax on alcohol and cigarettes, and who is gonna stand up and say anything? No one. Drinkers and smokers are screwed again
By April
February 20, 2009 10:39 AM | Link to this
Sin tax is stupid. It’s regressive and opens up opportunity for smuggling and the black market. I am glad that the Williamsburg Winery now ships to Ohio! Ohio needs to lax their laws.