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Dear Editor:
This week, the NJ State
Treasurer announced plans by the Administration to eliminate property tax
rebates and delay preschool programs for kids.
These are just a few of the plans that also include cuts in programs for
seniors, our children and the disabled due to the severe economic climate and
overwhelming drop in state revenue. Today,
the state budget deficit has ballooned to $9 billion. As state lawmakers
attempt to overcome this crippling financial crisis, legislative leaders have
announced all options for new sources of revenue will be considered. We suggest
Lifting the current cap on most
grocery stores from owning more than two retail packaged goods licenses would
fix a closed and anti-competitive liquor system and create a much needed source
of funding to the State Budget.
Currently, there are almost 400 dormant liquor licenses throughout the
state that sit unused. Unlike other
states that have open and transparent liquor markets, the anti-competitive NJ
liquor system leaves money on the table as these licenses sit idle and the sales
tax revenue that goes with them is unrealized in the State’s coffers.
In lifting the license cap and
activating just 200 of the dormant licenses, the state would generate about $60
million in new revenue. During a time
when our state revenues have plummeted, we believe that the option for
supermarkets to sell beer and wine is a reasonable one as it is in almost every
state in the nation.
The proposed legislation includes
a transfer fee on the sale of each license that provides revenue that could be
used for direct property tax relief, prevent cuts to healthcare for children
and special needs programs or help for the needy.
Supermarket companies employ almost
250,000 NJ residents, provide quality health coverage to the workforce and are
the anchors of the community. Superior
enforcement capabilities at the point of sale would prevent the sale of alcohol
beverages to minors. FBI studies
demonstrate that policies and procedures to prevent underage sales to minors
are much more successfully enforced by supermarkets than small corner liquor
stores.
We strongly believe this measure
promotes the free flow of commerce, more convenience to the customer, greater
enforcement to prevent underage sales and growth in the supermarket industry
that has seen flat sales recently in
If government leaders are
serious about closing the budget shortfall in this year’s budget, all options
for new revenue must be examined. We
know there is no silver bullet that will solve all of our needs in this State
but allowing supermarkets to purchase more than two liquor licenses will
generate additional revenue for the State to begin to close our current budget
hole. Without new public policies that
are effectively implemented in other states, our state budget will continue to
spiral out of control and NJ will face a larger deficit next year.
The supermarket industry is
willing to stand up and offer a viable fiscal offset for untapped revenue.
If all options for economic
recovery and revenue growth are on the table than wine should be on the table,
too.
Linda Doherty
President