Where do liquor stores buy from? Other liquor stores or the manufacturer? I'm not certain exactly how the whole liquor situation works in Minny, but if they buy from breweries and distilleries, this tax won't affect them. If they buy from other liquor stores, then it will. This also doesn't specify whether this tax will affect purchase of goods for resale, or just the purchase from the end consumer.
It is a sales tax paid during the retail transaction. The state sales tax is already 9% on liquor. So you add another .5% and you might not think it is much, but you are already at 9cents on the dollar to begin with.It does effect sales.
Ok, but do you think they can raise $30 million just by a 10% increase on tickets?
63,000 seats, lets say for arguments sake $100 average face value. that's $630,000 per game raised. over 8 games, that's barely over 5 million, and while yes, that does help, that's barely a fraction of what it costs to fund this. It would take 60 years to raise money on ticket sales. Add in probably another 6 million for merchandise, concessions and parking, we're still looking at 30 years or so.
And that gets to the whole point- They are building stadiums that are not possible to fund without outside revenue sources. no other business can build a facility that their operations cannot generate the revenue to sustain. If it takes that long to pay off the building with user fees you either need to put in more seats and put a good enough product on the field to sell them or you need to build a much more modest facility. I see no reason to embellish it with taxpayer money.
Since when were trucks being taxed more? It's not mentioned in the article.
It is mentioned right here in the link from JMCDON00.
City or county officials interested in the stadium would submit bids that include a financing package for a local share.
Aspiring local partners could raise that share with a half-cent increase in their local sales tax, as well as by levying or increasing local sales taxes on liquor, lodging, entertainment, game admission, food and beverage.
When you raise the local sales tax, everything that is sold in that locality is taxed at the added rate. So if you buy anything in the community that gets the stadium, everything from candy bars to kitchen cabinets to ford 150's will be included in that tax. And that is what I was talking about. .5% of a 35,000 truck is $1750. Now, you can say no big deal but put yourself in the position of a car dealer who has a business in the community that gets the stadium and is subject to the added sales tax. A customer comes in to buy from you but learns they can go 10 miles down the road to the next community that doesn't have that added .5 tax and save themselves 1750 dollars on the purchase of an identical vehicle. Do you think for one second that there will be no impact for that business if that happens?
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