Idaho: Idaho pulls from Washington liquor sales

Source: Daily Evergreen

By Christine Rushton

8/24/2012

Students in Pullman have made longer trips to get their liquor this semester.

Idaho has seen an increase in liquor sales following the June 1 implementation of Washington's Initiative 1183, according to the Idaho State Liquor Division.

Compared to the sales in June 2011, Washington's June 2012 sales were down 9.4 percent, according to the State Department of Revenue. However, restaurants and bars stocked up on liquor before the change, possibly skewing the data. Official data for July are not yet available.

Tony Faraca, the chief financial officer for the Idaho State Liquor Division, said Moscow, Post Falls and Lewiston, Idaho, experienced the largest impact because of their proximity to the border.

"Actually, we are seeing lift in Moscow in June and July around 30 percent," Faraca estimated. "I would anticipate that it will increase more sharply as the students come back to school."

The sales for Post Falls increased by 50 percent, Faraca said. Though Washington now has outlets, larger stores to sell in and a greater availability in grocery stores, the already high prices actually increased when I-1183 went into effect, he said.

"Where we had a good price advantage to begin with, (the initiative) just drove it up," Faraca said. "Financially, it is a gain to Idaho."

With the increased incentive for Washington residents to now travel to Idaho to buy liquor, there could be a social impact on the community; however, it is too hard to quantify, Faraca said. Most of the people who come over live close to the cities anyway, so they may already shop in the region, he said.

Jace Hovda, a pharmacy professional student, said he has gone to Moscow for less expensive liquor, but continues to buy in Pullman, too. The new pricing with taxes is irritating, though, he said.

"The difference in price wasn't as bad as it is now," Hovda said. "I was shocked at the increase in price with the availability in the grocery stores now."

However, Hovda said he worries more about the availability of liquor in 24-hour stores like Safeway and Walmart, which can sell liquor all hours except from 2 a.m. to 6 a.m. People may go to Moscow to stock up for planned events, but many will take advantage of the later sale hours in Pullman, he said.

"It kind of scares me in Pullman," Hovda said. "I am nervous for the students who don't know how to handle their alcohol."

Washington implements two taxes on the sale of liquor to its residents, according to the State Department of Revenue. The Spirits Sales Tax (SST) charges 20.5 percent on the sale, and the Spirits Liter Tax (SLT) charges $3.7708 per liter. Idaho charges a 6 percent tax on sales.

Mikhail Carpenter, a Washington Liquor Control Board spokesperson, said Oregon and Idaho have seen increased sales since I-1183 passed in June. The State Department of Revenue recently released a report detailing a decrease in sales for Washington liquor, but mitigating circumstances test the validity of these early reports, he said.

"A lot of businesses stocked up before (June 1), so that could lead to a lower purchase rate," Carpenter said. "There is not enough evidence for us to make any determination yet. The sales figures are not in for July."

The state knows people drive across the border to purchase cheaper alcohol and not pay the excise tax they are supposed to pay in other states, Carpenter said. It is the same idea as going to Oregon to buy television because there is no sales tax; Washington residents are supposed to pay the excise tax, but it is too difficult to track who is from where, she said.

"It is not really feasible to stick enforcement officers and track people coming across the border for a couple bottles of booze," he said. "However, large purchases such as bootlegging, we look into."

Both Bianca Duarte and Joe Doherty, seniors studying management, said if they already traveled to Moscow to shop, they would buy there. They also said friends were surprised by the after-tax price and agreed that taxes on alcohol should not be so high.