Possible Chicago liquor tax hike would be a disaster for business, hospitality industry says

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Council"],"datePublished":"2024-11-15T22:29:03-0600","dateModified":"2024-11-15T22:29:03-0600","author":[{"@type":"Person","familyName":"De Mar","givenName":"Charlie","name":"Charlie De Mar","url":"https:\/\/www.cbsnews.com\/team\/Charlie.De.Mar_CHI\/","sameAs":"https:\/\/x.com\/https:\/\/twitter.com\/CharlieDeMar\/","affiliation":{"@type":"Organization","name":"CBS News"},"worksFor":[{"@type":"Organization","name":"CBS News Chicago"}],"publishingPrinciples":"https:\/\/www.cbsnews.com\/news\/cbs-news-publishing-principles\/"}],"publisher":{"@context":"https:\/\/schema.org","@type":"NewsMediaOrganization","@id":"https:\/\/www.cbsnews.com\/chicago\/","name":"CBS 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planned property tax hike failing, he has to find the money somewhere to balance the nearly $1 billion budget deficit.One idea for a source for that money is taxing liquor sales even more. And many in the hospitality industry are not happy about that idea at all.Those in the industry who spoke to CBS News Chicago said their margins are already so slim that an increased liquor tax could drive business owners to close their doors\u2014and customers to drink outside the city.At the Irish Nobleman, at 1367 W. Erie St. in West Town, owner Declan Morgan says his neighborhood pub simply can\u0027t take on any more taxes without cutting staff or passing it on to customers.\"It\u0027s disappointing. it\u0027s a great city. But so many restaurants and bars are closing down all over this city and state,\" Morgan said. \"We\u0027re definitely looking at leaving the city, so, Chicago is doing us no favors.\"This week, Mayor Johnson\u0027s $300 million property tax increase was unanimously shot down by all 50 alderpeople. But the mayor\u0027s budget also calls for an increase of 34% for wholesale beer sales and roughly 35% for other spirits.\"The consumer is not blaming the City of Chicago or the mayor. They\u0027re blaming me the restaurant owner\u2014that it\u0027s my fault because I increased it,\" said Morgan. \"But I have no choice. If I don\u0027t increase it, we go out of business.\"The Distilled Spirits Council, a national lobby group, said Chicago already has some of the highest taxes on distilled spirits at $13.73 a gallon.\"Consumers are going to end up footing the bill,\" said Ainsley Giglierano, vice president of public affairs for the Distilled Spirits Council.The State of Illinois tax on distilled spirits is $8.55\u2014which Chicago taxpayers pay on top of the local tax. The distilled spirits tax in Wisconsin is $3.25, and in Indiana $2.68.\"When prices go up, consumers are going to shop elsewhere\u2014or they\u0027re going to go to the bar just outside the city limits,\" Giglierano said, \"and that\u0027s going to ultimately impact these local businesses.\"Steve Hartenstein is a restaurant owner and chairman of the Illinois Restaurant Association. He also fears what a spike to the cities liquor tax would mean for the industry.\"We\u0027re the economic engine to every city and state in the hospitality world,\" Hartenstein said. \"It\u0027s making it impossible to stay in business. Everybody\u0027s got to make money.\"The City Council will continue to conduct budget hearings over the next few weeks, and the budget must be finalized by the end of the year.","alternativeHeadline":"Possible Chicago liquor tax hike would be disaster, hospitality industry says","video":{"@context":"https:\/\/schema.org","@type":"VideoObject","mainEntityOfPage":{"@type":"WebPage","@id":"https:\/\/www.cbsnews.com\/chicago\/video\/experts-say-a-chicago-liquor-tax-hike-would-be-bad-news-for-business-consumers\/"},"name":"Experts say a Chicago liquor tax hike would be bad news for business, consumers","description":"Those in the industry who spoke to CBS News Chicago said their margins are already so slim that an increased liquor tax could drive business owners to close their doors\u2014and customers to drink outside the city. 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disaster for business, hospitality industry says</h1> <div class="content__meta-wrapper">  <a class="content__topic-link " href="https://www.cbsnews.com/chicago/" data-invalid-url-rewritten-http=""> <img width="60" height="60" class="content__show-logo" alt="chicago" src="/assets/show/chicago/logo-square-32.svg" loading="lazy"></a>  <p class="content__meta content__meta--byline byline"> By <span class="byline__author__text">Charlie De Mar</span> </p> <p class="content__meta content__meta--timestamp "> <time datetime="2024-11-15T22:29:03-0600">November 15, 2024 / 10:29 PM CST</time> / CBS Chicago </p> <ul class="sharebar"><li class="sharebar__button-container sharebar__button-container--service "> <a href="http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.cbsnews.com%2Fchicago%2Fnews%2Fchicago-liquor-tax-hike-hospitality-industry%2F" class="sharebar__button sharebar__button--type-facebook lazyload" title="facebook" target="_blank" data-component="popups" rel="noopener"> <svg 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class="lazyload embed__frame" data-width="1920" data-height="1080" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen" id="experts-say-a-chicago-liquor-tax-hike-would-be-bad-news-for-business-consumers--hero" title="Video: Experts say a Chicago liquor tax hike would be bad news for business, consumers" data-sort-time="1731730618000" data-update-time="1731730618000"></iframe> </div> <div class="player-overlay--draggable-handle"></div> </div> </div> <figcaption class="embed__caption-container"><a href="https://www.cbsnews.com/chicago/video/experts-say-a-chicago-liquor-tax-hike-would-be-bad-news-for-business-consumers/" class="embed__headline-link" data-invalid-url-rewritten-http=""> <span class="embed__icon"> <svg viewbox="0 0 32 32" aria-hidden="true"><use xlink:href="#icon-video"></use></svg></span> <span class="embed__headline">Experts say a Chicago liquor tax hike would be bad news for business, consumers</span> <span class="embed__video-duration">02:29</span> </a> </figcaption></figure><section class="content__body"><p><strong>CHICAGO (CBS) </strong>-- <span class="link"><a href="https://www.cbsnews.com/chicago/news/chicago-city-council-set-to-vote-down-mayor-johnsons-proposed-300-million-property-tax-hike/" target="_blank" data-invalid-url-rewritten-http="">With Mayor Brandon Johnson's planned property tax hike failing</a></span>, he has to find the money somewhere to balance the nearly $1 billion budget deficit.</p><p>One idea for a source for that money is taxing liquor sales even more. And many in the hospitality industry are not happy about that idea at all.</p><p>Those in the industry who spoke to CBS News Chicago said their margins are already so slim that an increased liquor tax could drive business owners to close their doors—and customers to drink outside the city.</p> <p>At the Irish Nobleman, at 1367 W. Erie St. in West Town, owner Declan Morgan says his neighborhood pub simply can't take on any more taxes without cutting staff or passing it on to customers.</p><p>"It's disappointing. it's a great city. But so many restaurants and bars are closing down all over this city and state," Morgan said. "We're definitely looking at leaving the city, so, Chicago is doing us no favors."</p> <div id="mpu-plus-outstream-middle" data-ad="mpu-plus-outstream-middle" class="ad-mpu-plus-outstream-middle ad-wrapper " data-ad-unit='"mpu-plus-outstream-middle"'> </div> <p>This week, Mayor Johnson's $300 million property tax increase was unanimously shot down by all 50 alderpeople. But the mayor's budget also calls for an increase of 34% for wholesale beer sales and roughly 35% for other spirits.</p><p>"The consumer is not blaming the City of Chicago or the mayor. They're blaming me the restaurant owner—that it's my fault because I increased it," said Morgan. "But I have no choice. If I don't increase it, we go out of business."</p><p>The Distilled Spirits Council, a national lobby group, said Chicago already has some of the highest taxes on distilled spirits at $13.73 a gallon.</p><p>"Consumers are going to end up footing the bill," said Ainsley Giglierano, vice president of public affairs for the Distilled Spirits Council.</p> <div id="leader-plus-inc3" data-ad="leader-plus-inc" class="ad-leader-plus-inc ad-wrapper " data-ad-unit='["leader-plus-inc",3]'> </div> <p>The State of Illinois tax on distilled spirits is $8.55—which Chicago taxpayers pay on top of the local tax. The distilled spirits tax in Wisconsin is $3.25, and in Indiana $2.68.</p><p>"When prices go up, consumers are going to shop elsewhere—or they're going to go to the bar just outside the city limits," Giglierano said, "and that's going to ultimately impact these local businesses."</p><p>Steve Hartenstein is a restaurant owner and chairman of the Illinois Restaurant Association. He also fears what a spike to the cities liquor tax would mean for the industry.</p><p>"We're the economic engine to every city and state in the hospitality world," Hartenstein said. "It's making it impossible to stay in business. Everybody's got to make money."</p><p>The City Council will continue to conduct budget hearings over the next few weeks, and the budget must be finalized by the end of the year.</p>  <aside class="component list recirculation component--type-recirculation "><div class="component__heading-wrapper"> <h3 class="component__title">More from CBS News</h3> </div> <div class="component__item-wrapper"> <div class="item" id="inline-recirc-item--id-0"> <a class="item__anchor" href="https://www.cbsnews.com/chicago/news/chicago-parking-garage-tax-hike-proposal/?intcid=CNR-02-0623" data-invalid-url-rewritten-http=""> <span class="img item__thumb item__thumb--crop-0"><img src="https://assets2.cbsnewsstatic.com/hub/i/r/2024/11/22/961d9733-892d-4866-bb91-36253006a883/thumbnail/1200x630/3586820f56ade62ec556894956da2407/parking-tax.jpg?v=b1635869826311f914073798d8df6484#" alt=" " layout="fill" height="90" width="140"></span> <div class="item__title-wrapper"> <span class="item__hed"> Chicago parking garages warn proposed tax hike will drive up their rates</span> </div> </a> </div> <div class="item" id="inline-recirc-item--id-1"> <a class="item__anchor" href="https://www.cbsnews.com/chicago/news/convenience-store-robberies-chicago-old-town-loop/?intcid=CNR-02-0623" data-invalid-url-rewritten-http=""> <span class="img item__thumb item__thumb--crop-0"><img src="https://assets3.cbsnewsstatic.com/hub/i/r/2024/11/25/60efe6e2-0933-457f-909b-9ab8d629c095/thumbnail/1200x630/5b6c5b0439855703518d026bd6be5201/snapshot-2024-11-25t055304-260.jpg?v=b1635869826311f914073798d8df6484#" alt=" " layout="fill" height="90" width="140"></span> <div class="item__title-wrapper"> <span class="item__hed"> Employee pepper sprayed in one of at least two Chicago convenience store robberies overnight</span> </div> </a> </div> <div class="item" id="inline-recirc-item--id-2"> <a class="item__anchor" href="https://www.cbsnews.com/chicago/news/food-vendor-shot-attacker-west-side/?intcid=CNR-02-0623" data-invalid-url-rewritten-http=""> <span class="img item__thumb item__thumb--crop-0"><img src="https://assets2.cbsnewsstatic.com/hub/i/r/2024/11/23/23234a2e-efec-456c-b6fd-38806105ac6b/thumbnail/1200x630/77aaf6a2c2f3b15af388490db87d4388/snapshot-2024-11-23t070439-837.jpg?v=b1635869826311f914073798d8df6484#" alt=" " layout="fill" height="90" width="140"></span> <div class="item__title-wrapper"> <span class="item__hed"> Attacker killed, food vendor hurt after shootout in Austin neighborhood</span> </div> </a> </div> <div class="item" id="inline-recirc-item--id-3"> <a class="item__anchor" href="https://www.cbsnews.com/chicago/news/copa-investigating-shots-fired-off-duty-chicago-police-officer/?intcid=CNR-02-0623" data-invalid-url-rewritten-http=""> <span class="img item__thumb item__thumb--crop-0"><img src="https://assets1.cbsnewsstatic.com/hub/i/r/2024/03/31/7f5d1407-a455-4717-b90d-794556bf9fa0/thumbnail/1200x630/04759ebf14083ea46d6d91af134359da/gettyimages-1460029671.jpg?v=b1635869826311f914073798d8df6484#" alt=" " layout="fill" height="90" width="140"></span> <div class="item__title-wrapper"> <span class="item__hed"> COPA investigating after off-duty CPD officer shot at in Washington Park</span> </div> </a> </div> <div class="item" id="inline-recirc-item--id-4"> <a class="item__anchor" href="https://www.cbsnews.com/chicago/news/4-hurt-car-crash-west-side-liquor-store/?intcid=CNR-02-0623" data-invalid-url-rewritten-http=""> <span class="img item__thumb item__thumb--crop-0"><img src="https://assets2.cbsnewsstatic.com/hub/i/r/2024/11/23/6cf7b321-0ecc-4719-9a70-387229ef0fc6/thumbnail/1200x630/1f83911072f9b252a83de48d72a0f462/snapshot-2024-11-23t092409-642.jpg?v=b1635869826311f914073798d8df6484#" alt=" " layout="fill" height="90" width="140"></span> <div class="item__title-wrapper"> <span class="item__hed"> 4 hurt after driver crashes SUV into Austin neighborhood liquor store</span> </div> </a> </div> </div> </aside><style type="text/css"> .component--type-recirculation .item:nth-child(5) { display: none; } #inline-recirc-item--id-31136a1e-6cf4-43ac-a8c9-bcfb10797c73, #right-rail-recirc-item--id-31136a1e-6cf4-43ac-a8c9-bcfb10797c73 { display: none; } #inline-recirc-item--id-31136a1e-6cf4-43ac-a8c9-bcfb10797c73 ~ .item:nth-child(5) { display: block; } </style><ul class="content__tags">In: <li><a href="/chicago/tag/chicago-city-council/">Chicago City Council</a></li> </ul><div class="content-author"> <a href="https://www.cbsnews.com/chicago/search/author/charlie-de-mar/" class="content-author__name" data-invalid-url-rewritten-http="">Charlie De Mar</a> <div class="content-author__bio"> <div class="content-author__image"> <a href="https://www.cbsnews.com/chicago/search/author/charlie-de-mar/" data-invalid-url-rewritten-http=""> <span class="img "><img src="https://assets3.cbsnewsstatic.com/hub/i/r/2022/02/25/e3d80c18-1146-4687-94b8-66a25f8c7694/thumbnail/80x80/30ed2539866d590be034788b8d51480c/charliedemar-2.jpg?v=b1635869826311f914073798d8df6484#" alt="charliedemar-2.jpg " height="80" width="80" class=" lazyload" data-srcset="https://assets3.cbsnewsstatic.com/hub/i/r/2022/02/25/e3d80c18-1146-4687-94b8-66a25f8c7694/thumbnail/80x80/30ed2539866d590be034788b8d51480c/charliedemar-2.jpg?v=b1635869826311f914073798d8df6484 1x, https://assets3.cbsnewsstatic.com/hub/i/r/2022/02/25/e3d80c18-1146-4687-94b8-66a25f8c7694/thumbnail/160x160/010b00585c4ddd6910b63febd2f4b8e6/charliedemar-2.jpg?v=b1635869826311f914073798d8df6484 2x" srcset="data:image/svg+xml,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20viewBox%3D'0%200%2080%2080'%2F%3E"></span> </a> </div> <div class="content-author__full-information"> <p class="content-author__text">Charlie De Mar is an Emmy Award-winning reporter for CBS2.</p> <div class="content-author__social-links-container"> <a href="https://twitter.com/CharlieDeMar/" class="content-author__social-link" rel="nofollow noopener"> <svg viewbox="0 0 32 32" class="content-author__logo" aria-hidden="true"><use xlink:href="#icon-social-twitter"></use></svg> Twitter </a> <a href="https://www.facebook.com/CharlieDeMarNews/" class="content-author__social-link" rel="nofollow noopener"> <svg viewbox="0 0 32 32" class="content-author__logo" aria-hidden="true"><use xlink:href="#icon-social-facebook"></use></svg> Facebook </a> </div> </div> </div> </div> </section><footer class="content__footer"><p class="content__copyright"> <small>© 2024 CBS Broadcasting Inc. All Rights Reserved.</small> </p> </footer><div id="flipp-ux-slot-3n48n33"> <div class="flipp-ux-header" style="display: none"> <h3>Featured Local Savings</h3> </div> </div> </article></div> <div class="col-4 nocontent"> <section class="component list list component--topic- component--view-list --item-count-4" id="component-queryly-right-rail-article-recirc" data-id="af907f0c-7c99-459b-bad1-fc091da10a84" data-slug="queryly-right-rail-article-recirc"><div class="component__heading-wrapper"> <h3 class="component__title">More from CBS News</h3> </div> <div class="component__item-wrapper"> <article class="item lazyload item--type-custom"><a href="https://www.cbsnews.com/chicago/news/chicago-parking-garage-tax-hike-proposal/?intcid=CNR-01-0623" class="item__anchor" draggable="false" ondragstart="return false;" data-invalid-url-rewritten-http=""> <span class="img item__thumb item__thumb--crop-0"><img 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Possible Chicago liquor tax hike would be a disaster for business, hospitality industry says - CBS Chicago