Fri, Nov 21, 2008

Tucson Region

Councilman suggests new tax on booze

Leal says excessive drinking costs city, seeks way to recoup expense
By Josh Brodesky
arizona daily star
Tucson, Arizona | Published: 10.05.2008
Serving up drinks in the Old Pueblo, or buying them at the store, could get pricier as the city explores taxing alcohol sales.
All too often, Councilman Steve Leal said, the city is picking up the tab for people who drink too much, get into trouble and end up using city services.
In tough economic times, with the city slashing its budget, Leal said Tucson should get that money back, most likely through a tax on alcohol sales.
To that end, he has instructed the City Manager's Office to figure out how much the city spends on services such as police time, paramedics and court costs on people who were drinking alcohol. He then wants to recoup those funds.
"I think people think it's a good thing to try and figure out," Leal said.
It's an idea he has been kicking around for a while, but with recent budget cuts, he figured it was time to pursue. "I thought, my God, here we are shutting stuff down and hemorrhaging money and cutting stuff."
The idea is vague, at best. Leal said the city studied the idea "maybe 10 years ago" and found alcohol-involved incidents cost the city $9 million. A memo sent out last week is all of three paragraphs and asks that the city get a current cost figure and "find an appropriate vehicle for cost recovery."
Leal said he doesn't know what that would be, but he gave examples of 10- and 25-cent fees on the sales of six-packs.
"If the equivalent was 25 cents a six-pack, who would care?" Leal said. "I just don't know."
Assistant City Manager Richard Miranda said officials will research Leal's request, but they may need to work with outside researchers to get answers. In a phone message, City Manager Mike Hein said the city may need to partner with the University of Arizona.
Miranda said it could be possible to use court fees instead of a sales tax to try to recover the costs of services to people using alcohol, but it's just too soon to really say how or what the city would do to recoup the funds.
"Any taxing situation is going to cause discussion," Miranda said. "It has to be vetted out."
The discussion will serve a purpose, he added. "At minimum, it helps people understand about alcohol abuse" and its costs to a community.
It's also unclear what constitutes an alcohol-related incident in either Leal's view or by city standards. During an interview, Leal used the example of paramedics "picking up mangled drunks" as a cost to taxpayers.
But he also acknowledged that for many people, substance abuse may be a symptom of a number of other issues such as mental illness or poverty.
"Usually people aren't abusing alcohol or drugs in isolation. There are other factors that go into that," said Dan Ranieri, a licensed psychologist who is president and CEO of La Frontera Center, which serves people with mental illness and substance-abuse problems.
Ranieri said he didn't have a problem with the idea of "sin taxes," but he thinks the logic behind them isn't necessarily sound. "Is their logic pure? No," he said. "But when you start mixing that with politics" it really doesn't matter.
Leal said his idea would only focus on clear instances when alcohol prompted the city to provide services.
"My intention is to just try to look at the black-and-white stuff," he said. "The microscope won't be going down that far."
Among bar owners and patrons randomly interviewed about the proposal, Leal's idea got no traction.
"I think it's way overboard," said Frank Silverman, owner of Midtown Bar and Grill, 4915 E. Speedway. "We're already paying a lot on city sales tax and state sales tax, and the taxes on everything else. Our prices are going up. The beer companies are constantly raising prices. . . . Ultimately it falls on the consumer, and they are the ones that end up paying for the increase."
Over at Bob Dobb's Bar & Grill, 2501 E. Sixth St., Realtor Alfred Maldonado said given how tough times are, the city needs to stop considering raising taxes or adding fees.
"It's not the time," he said. "Think about how the economy is right now."
A few barstools over, Keith Collier, 51, said he drinks responsibly and wondered why he should have to pay for people who choose not to do the same.
So far, response from Leal's council colleagues is mixed.
Regina Romero said she thought the idea is creative and the city should study it.
"We are in a horrible budget deficit, and so it's a good idea to look at what our services cost," she said. "Especially when you are providing services to people who are getting in trouble."
Council members Rodney Glassman and Karin Uhlich were much cooler to the idea.
Both doubted their constituents would support another tax or fee. And neither was convinced that doing a study would be the best use of city resources at a time when they are already stretched thin.
Beyond that, Uhlich said she wasn't even sure the city could tax alcohol. A better way to address the cost on services might be to look at how the city responds to incidents involving alcohol, she said.
"Responsible alcohol sales and responsible use of alcohol are critical community issues," she said. "However, when the city is examining its own services, the key again is 'how can we provide services efficiently?' "
Uhlich said she's sure Leal will do his homework and offer a "concrete proposal."
Meanwhile, Glassman said he hadn't read the memo. While he said he has no tolerance for drinking and driving, he had a number of questions — including the costs and manpower needed to study the issue.
As far as a "cost recovery," Glassman had reservations. "In the midst of our economic recession,'' he said he was wary of new taxes or fees.
Councilman suggests new tax on booze
● Contact reporter Josh Brodesky at 807-7789 or jbrodesky@azstarnet.com.