Photo credit: dyanvega.blogspot.com
The proposed “sin tax”
that will be on the Cuyahoga County ballot in May drew pro and con comments from readers and voters on Cleveland.com. Andrew Tobias's full analysis is here. Here is an extract:
If voters approve it in
May, the county's sin tax would be used to pay for maintenance for Cleveland's
pro sports stadiums. It's assessed at 4.5 cents per pack of cigarettes, 1.5
cents per 12-ounce bottle of beer, 6 cents per 750-milliliter bottle of wine,
32 cents per gallon of mixed beverages, 24 cents per gallon of cider and $3 per
gallon of hard liquor. Officials estimate it will raise around $270 million
over a 20 year period, based on recent collections.
Will the price of my beer
really go down if the sin tax fails?
“So all of you geniuses
who want to vote NO really think the price you pay for beer or cigarettes is
actually going to drop now that we do not have a sin tax? Its the same story
with gasoline, why will we never see gas less than $3.00 again? Because everyone
is still paying the price now. So instead without the sin tax we will pay the
same price for beer and cigarettes but instead of that money going back into
the county to generate more revenue, it is going into the pockets of your local
convenient store owner... Makes sense lets vote NO and deprive CLE of
everything.”
I hear this a lot. If the
sin tax fails, should we expect a $5 brew at Market Garden to cost $4.98? Will
a $5.50 pack of cigarettes suddenly cost $5.45?
This isn't scientific,
but the consensus from those that I've talked to: not very likely.
(UPDATED: March 29) I
thought about this overnight, and decided I didn't address this issue well
enough. It's a bit of an open-ended question, and if I get a better answer,
I'll update it here. But a commenter on this post who identified him or herself
as a tobacco representative says convenience
stores likely would lower the prices of cigarettes if the taxes fails.
I have not heard the same thing from bar owners or people in the liquor
business.
It's also worth saying
the anti-sin tax people say regardless of what happens with the prices, the tax
itself hits the poor the hardest. And, the money it raises isn't
inconsequential, and could be used for something else. Finally, I should point
out: many of the commenters here oppose the tax on principle.
Why
can’t Cleveland just raise taxes on tickets?
“Instead of a general sin
tax they could use a per-ticket facility fee to raise the necessary funds. let
the people who actually use the facilities pay for them.”
The Northeast Ohio Media
Group’s Rich Exner addressed this issue, and set up a nifty
calculatorto provide some rough estimates of how high the tax
would have be to equal the sin tax. His answer: ranging between $3 to $7,
depending on the team.
The pro-sin tax campaign
argues that tickets are already taxed enough. The admissions tax in Cleveland
is currently 8 percent -- a tax hike would discourage fan attendance and make
Quicken Loans Arena in particular less competitive when attracting regional
concerts and other events, they say.
Who decides what
constitutes “maintenance” versus “enhancements” to the stadiums?
Again from
Gadgetking2014:
“also they need to better
define what is contractually obligated maintenance and what is enhancements
(that the teams are responsible for). the tax does not expire for over a year
so they have time to work this out before they lose this temporary tax.”
Here’s what we know about
what the teams want:
It’s up to the Gateway
Economic Development Corp. – that’s the non-profit landlord created by Cuyahoga
County and Cleveland to oversee Progressive Field and Quicken Loans Arena – to
approve any requests for capital improvements greater than $500,000. Gateway
will not approve anything it deems to be enhancements not covered by the lease.
This determination is legal and complicated, and Gateway board members say they
take their responsibility seriously.
But this review won't
happen until the teams officially ask for the repairs. That likely won't happen
until July 1, if not later.
As for the Browns -- team
officials said they expect to ask for $23.7 million in repairs over the next 10
years. Their list is less detailed, in part because FirstEnergy Stadium is
owned by Cleveland and is not entirely dependent on the sin tax.
“Tax
and spend Democrats”
“The dems never met a tax
they didn't like.”
We hear this a lot.
The majority of elected
officials in Cuyahoga County who have taken a public position on the sin tax
support it. And of course, the majority of elected officials in Cuyahoga County
are Democrats.