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News State House Sound Bites Mixed feelings about lottery sales in state liquor stores
Wednesday, 22 February 2012 10:48

Mixed feelings about lottery sales in state liquor stores

Written by  Mary Wilson, Capitol Bureau Chief

Pennsylvania’s revenue watchers say putting lottery ticket sales in state liquor stores would be a boon to the state’s coffers, but not all lawmakers are keen on the idea.  

 

Profits from the Pennsylvania Lottery have held pretty steady over the past few years, according to the Revenue Department.  A key to boosting those sales is to increase the number of retailers, and the first places the Revenue bean counters are looking to are the state-run liquor stores.

 

But at a budget hearing Tuesday, Senate Appropriations Committee majority chairman Jake Corman said such a move would force privately-owned stores to compete with state stores for lottery ticket sales.

 

“I’m not for putting those in a government run monopoly,” said Corman.  “I think that would be unfair to private enterprise that’s out there working hard to meet a payroll.”

 

Revenue Secretary Dan Meuser said he’s sympathetic to Corman’s concern.

 

“He’s got a strong point there.  We don’t want to do anything that would put a current retailer at a competitive disadvantage.”

 

According to Meuser’s office, the first year of selling lottery tickets in state liquor stores could net up to $20 million, depending on where and how the tickets are sold.  30 percent of lottery revenue goes into programs benefitting older Pennsylvanians.

 

Meuser also remarked on his agency’s ongoing effort to educate Pennsylvania taxpayers about reporting a use tax for their online sales purchases.

 

State senators are skeptical that many people will file the tax at all, despite the Corbett administration’s announcement that those who don’t voluntarily pay sales tax on items bought online may be audited.  Many suggested people still aren’t in the habit of keeping tabs on all their online purchases. 

 

Meuser said it’s for precisely that reason that the commonwealth’s tax returns will include a suggested amount of online sales tax to pay. 

 

“It’s based upon what their income is and what we’ve determined through various analysis what would be typical at those income levels,” said Meuser. 

 

The state expects to see about seven million dollars from individuals who file the tax, but Meuser said that could end up being higher.  Electronic tax forms don’t allow individuals to leave the line blank, and about 70 percent of the state’s residents file their tax returns electronically.

 

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