2 Years After Sunday Liquor Sale Bill Passes, Tax Revenue Still Lackluster

2 Years After Sunday Liquor Sale Bill Passes, Tax Revenue Still Lackluster

MINNEAPOLIS (WCCO) — Minnesota now has two years of Sunday liquor sales under its belt, and the numbers are in.

For the second year in a row, revenues from state alcohol taxes did not go up as much as predicted.

Minnesota liquor taxes are up slightly from last year, but Sunday sales are not creating the windfall in revenue many predicted.

READ MORE: The Data On Sunday Liquor Sales In Minnesota

The Minnesota Department of Revenue reports in the second full year, including Sundays, the state took in $191,551,000 in alcohol taxes. That’s a modest 2.7% year-to-year increase, which is less than promised and lower than past years.

The Minnesota Legislature overwhelmingly passed Sunday sales in 2017, and supporters were predicting $10.8 million to $15.1 million a year in extra revenue, citing the experience in other states.

But it hasn’t turned out that way. Alcohol tax revenues went up about $3.6 million last year, and not necessarily because of Sundays.

Growth In Minnesota Alcohol Tax:

  • 2019: 2.7%
  • 2018: 4.0%
  • 2016: 5.6%
  • 2014: 3.6%
  • 2013: 3.1%
  • 2012: 4.3%
  • 2011: 3.7%

In fact, the 2.7% uptick last year is lower than six of the last 10 years — and lower than the 10-year average of 3%.

The Minnesota Licensed Beverage Association reports most of the state’s 900 liquor stores are now open on Sundays. It says sales are now spread out over seven days instead of six.

There has not been a massive uptick in sales and revenue, and it has been a bit of a burden for some independent retailers.

READ MORE: The Impact Of Sunday Liquor Sales

Published at Thu, 15 Aug 2019 03:01:27 +0000