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LETTER: Retailers don’t want to raise prices


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The Grand Island Independent
Posted May 13, 2008 @ 12:00 AM

GRAND ISLAND —



I recently talked to some local bar and restaurant owners and everyone I talked to was totally against adding an additional sales tax for a whole year that will only have a benefit for approximately 10 days.

I don't think everyone realizes that the additional tax will not always be paid by the consumer and out-of-towners. Normally when you go to a bar or lounge, you purchase a beer or drink and the establishment charges a set rate, be it, $2.25 to $5.00. There is no sales tax charged to the consumer. How the sales tax is collected is the owner has to deduct the sales tax out of the purchase amount every month and send that to the state. If a 1 percent to 2 percent sales tax is added, that will come directly out of the establishment's profits. I personally look at this as a potential 9 percent surcharge on the business and not the consumer. This, in turn, could cause the retailer to raise prices. Raising prices is the last thing we retailers want to be doing to our customers at this time.

I can't believe that some of our city council members, and you know who you are, already  are overlooking the future increase in sales tax money that will be coming in after June 1, 2008. It was less than three months ago when we were informed that our business would not decrease, but increase, when the new local smoking ban goes into effect. Some council members, and you know who you are, said their statistics from Lincoln establishments showed an increase in sales, in turn, increasing the amount of local sales tax being generated. Maybe we should wait and see just how much our sales increase after June 1. If business increases by 30 percent, that will be a huge increase in sales tax received, and we wouldn't have to put another unwanted tax on owners and consumers.

Curtis Cellar, Owner, Library Restaurant

4258 Nevada

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