City Council Votes to Keep Liquor Sales Tax at 5 Percent

The plan to triple the sales tax on liquor is no more.

Late last year, the City Council approved raising the sales tax from 5 percent to 15 percent. The increase was supposed to go into effect last month but didn’t because the city failed to notify merchants.

Both liquor store and bar owners voiced their concerns, saying the tax hike would hurt business.

Tuesday evening, council members voted to scrap the idea and leave the tax at 5 percent.

The owner of one bar says he thinks the city was just looking for money.

“Quite honestly because the city is hurting and they’re trying to find anything and everything to raise additional revenue because of the size the deficit has grown to,” says Rick McCaa, co-owner of Ric and Mo’s.

Montgomery Mayor Todd Strange supported the tax increase, saying the 5 percent sales tax on liquor has not changed in the last 40 years, although other taxes have gone up.