Continuing a long-running controversy, the mayors of the state’s three largest cities are calling for the sale of alcohol in package stores and supermarkets on Sundays – a long-banned practice in Connecticut.
Bridgeport Mayor Bill Finch, who strongly supported the idea when he was a state senator, joined with New Haven Mayor John DeStefano and Hartford Mayor Eddie Perez on Wednesday to push for the sales – citing a recent legislative staff report that says the change would mean an extra $7.5 million to $8 million in tax revenue for the state.
“If our legislators simply lifted this antiquated ban on Sunday alcohol sales,” Finch said, “our financially struggling state could stop bleeding business – and sending tax revenue – to stores in neighboring states.”
The group that would sell most of that alcohol, the Connecticut Package Stores Association, has blocked Sunday sales multiple times during the past five years in one of the most heavily lobbied issues at the Capitol. The association says the extra day would not mean any extra money for the state or the stores because it would simply spread existing sales over seven days instead of six.
Despite the support from the three mayors, the idea has a long way
to go. It requires approval by the full House of Representatives and
the state Senate – which has never happened. It also requires support
from Gov. M. Jodi Rell, who opposes the idea. Rell’s budget director,
Robert Genuario, said that Rell did not include Sunday sales in her
latest budget – despite huge state deficits – because she flatly
opposes the concept.
Finch said in an interview Monday said that he has been frustrated
by the legislature’s general law committee that has blocked Sunday
sales for years.
“I couldn’t get it through when I was a senator, so I’m trying to
back-door it,” Finch said. “You have to go down to South Carolina to
find a state on the eastern seaboard” with a ban as strong as
Connecticut’s.
While favoring a statewide lift of the ban on Sunday sales, Finch
said that he and the other mayors would favor a law that would allow
Sunday sales in Bridgeport, Hartford, and New Haven.
“At least let us do it,” Finch said. “What we hope to demonstrate
to the state is show them how silly they have been by leaving the money
on the table. If you go to the Sturbridge liquor stores, you see
Connecticut license plates up there.”
Saying that the Bridgeport police can handle any problems with underage drinking, Finch said the issue is purely financial.
“Even if it was $100,000 more for Bridgeport, it’s $100,000 we
desperately need,” he said. “We think it’s worth a shot. Let’s see
what it brings in.”
The argument against Sunday sales has carried the day at the Capitol
in the past, as legislators have rejected the pleadings of lawmakers
representing border towns, such as Enfield, who say liquor stores in
their towns now suffer from weak sales.
Connecticut is the only
state in New England — and one of only three in the nation — that has
an across-the-board ban on Sunday of beer, wine, and liquor in stores
and supermarkets. Other states have bans in varying degrees, depending
on the type of alcohol being sold.
As part of a broader, 72-page
report on economic competitiveness that was released in December, the
legislature’s program review and investigations committee staff wrote:
“Connecticut liquor and grocery stores should be permitted, but not
required, to sell alcohol on Sunday under their current licensing
provisions.”
The report stated that per-capita sales in the
border towns were 35 percent to 43 percent lower than in other
Connecticut towns between 2004 and 2008.
State Sen. John Kissel
strongly supported the report as he has has been fighting this war for
years because his district covers the towns along the Massachusetts
border — Enfield, Suffield, Somers, and Granby. Aware of the
legislature’s solid opposition, Kissel said it might be possible to
compromise by allowing sales on Sundays during the heavy shopping
period between Thanksgiving and New Year’s Day.
But Carroll
Hughes, a longtime lobbyist for the package store owners, said
Wednesday that the Sunday sales are a bad idea because the stores would
be forced to pay overtime rates for their workers with no significant
increase in sales. As such, some stores that are barely profitable
would be forced to close, he said.
The association represents 1,100 package stores – in 168 out of
the 169 towns – in a state of 3.4 million people. The stores are often
“mom and pop” operations that do not even have computers in the store
in 2010. Out of 1,100 stores, Hughes has an e-mail list of only about
50 stores.
Despite widespread belief to the contrary, Hughes says the ban on
Sunday sales has absolutely nothing to do with the long-ago “blue”
laws regarding the closure of stores on Sunday.
Hughes rejects
the committee staff’s estimate that opening on Sunday could generate an
additional $7.5 million to $8 million in taxes per year. With the
state’s continuing budget problems, that figure has aroused interest
among some at the Capitol.
But with the state’s sales tax at 6
percent, Hughes said in an interview Wednesday that the estimated
increase in the state’s revenue would require about $135 million in
additional alcohol sales. At current prices, the sales volume would
need to explode to generate that much money, he says. Hughes calculated
that Connecticut residents would need to buy 13.5 million bottles of
vodka at $10 each in order to raise that level of revenue.
“The wholesalers support us – the beer and the liquor wholesalers,”
Hughes said Wednesday. “If we lose stores, they lose salesmen, and they
lose drivers.”
Another factor in the debate is that Massachusetts imposed a sales
tax of 6.25 percent on alcohol in August 2009 that Hughes said has
sharply changed the dynamics for Connecticut package stores. Buyers are
now staying home in Connecticut because there is less of an advantage
to crossing the border, he said. As such, he says that Massachusetts is
no longer a serious threat to alcohol sellers and that should reduce
the impetus for Sunday sales.
Besides legislators from border towns, the idea has gained strong
support from the national Distilled Spirits Council of the United
States and its lobbyists.
The state legislature is expected to hold a public hearing –
probably within the next two weeks – on the Program Review and
Investigations committee staff’s recommendation about allowing Sunday
sales. But no date has been set yet for the hearing.
“We have the facts to support our position,” Hughes said. “None of
my people have ever been concerned about speaking at a public hearing.”
“The box stores, the food stores benefit,” Hughes said. “My guys
lose. It puts them out of business. I know enough to know it’s bad for
Bridgeport. I have a huge number of stores in Bridgeport. I suppose we
have 25, maybe 30” stores.