By Annie Goeller, Daily Journal of Johnson County staff writer
Doubling the tax on alcohol sales is unfair to local bars and restaurants, especially in a sluggish economy, owners said.
But they expected the increase to come sometime, and they doubt it will affect sales much.
Local bar and restaurant owners said they likely will take on some of the cost of a proposed alcohol tax increase, which would raise the cost of a 12-ounce beer about a penny and a shot of liquor about 2 cents.
A penny increase likely will translate into a beer costing about a quarter more so that bars can keep the cost simple both for customers and employees, said Tom Mazza, who owns the Jukebox in Franklin.
"Simple is better, so ultimately, you can't just add a penny," he said.
People will notice that increase.
And it's coming at a time when people already are cutting back on their spending by not going out to eat or staying home instead of visiting a bar, Mazza said.
"I don't see how adding cost is going to benefit us right now. Everyone is struggling," he said.
"Ultimately, we're going to eat the penny."
Mazza said a tax increase solely focused on alcohol is unfair to restaurants and bars, especially when other businesses benefit from professional sports stadiums in Indianapolis that the increased tax would help fund.
He won't know if an increase would hurt businesses until it goes into effect, but a restaurant owner and manager said they don't expect a significant impact.
But the tax increase still is unfair, they said.
"People will go have dinner, they'll go have a drink, and they're going to come and sit on my patio, and the politicians know this," said Bob Schofield, who owns The Willard in Franklin.
Schofield and Mazza said restaurants and bars sometimes are the target of increases, and there is little they can do to fight it, such as the 1 percent increase in the food and beverage tax approved in 2006 that funded the construction of Lucas Oil Stadium and the expansion of the Indiana Convention Center.
"It's one of those things that you just live with," Schofield said.
The increase is significant, with the proposal to double the tax, especially when people often feel the cost of everything is going up while their income stays the same or decreases, said Dave Hoffman, general manager at the Oaken Barrel in Greenwood.
"We support the Colts and everything, but if they're talking about doubling it, that's a lot," he said.
He is against the tax increase but said there is little he and employees can do except to tell customers why prices may increase.
"What do you do? If it's going to happen, you can't change it," he said.