Higher NJ liquor tax takes effect

By: Phil Gregory

A 25 percent increase in the state tax on those alcoholic beverages took effect August first.

By: Phil Gregory
philgregorynews@gmail.com

Be prepared to pay more for wine and liquor in New Jersey. A 25 percent increase in the state tax on those alcoholic beverages took effect August first.

Listen:
[audio: 090731pgtax.mp3]

The increase comes a month after a tax hike for cigarettes took effect.

Fred Leighton is the President of the New Jersey Liquor Store Alliance. He says some retailers will wait to increase their liquor and wine prices, while others will charge up to a dollar more per bottle right away. Leighton says the higher prices may curb sales and cut into his profit margin.

Leighton: Sales will probably go down because prices to the customer will go up but we’re businessmen, this is a capitalistic country, and you have to adapt to these conditions.

The state projected the higher tax will generate more than $20 million and help offset a falloff in revenue during the recession.