City ponders local booze tax

SANDPOINT — A proposed city tax on beer, wine and liquor sales by the drink has some local business owners questioning whether they should shoulder an additional tax burden.

Council members examined a proposal to send a 2-percent alcohol tax to voters this November in addition to a renewal of the 5-percent occupancy tax on hotel, motel, bed and breakfast and vacation rental stays shorter  than 30 days. After a negative response from some restaurant and bar owners, however, the council tabled the issue until its Sept. 3 meeting to consider additional options and get more information.

If approved by voters, the alcohol tax would require restaurants and bars to add a 2-percent surcharge to liquor, beer and wine sold on the license-holder’s premises, while hotel operators would continue to do the same for short-term stays. The bed tax is expected to generate $250,000, while the alcohol by the drink tax would bring in $110,000. Both would go into effect Jan. 1, 2016 and run for eight years.

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