Pennsylvania's Archaic And Complicated Wine Laws: State-Instituted Robbery
And now it seems it will turn into state-instituted theft and destruction -- of rare and expensive wines.
Michelle Minton explains at CEI that a Philly man, Arthur Goldman had his home raided and had cops seize 2,426 bottles of rare wine -- more than $125K-worth -- that the cops reportedly plan to "destroy":
Arthur Goldman, a 50-year-old lawyer, alleged ran afoul of Pennsylvania's archaic wine laws by purchasing and selling through unapproved channels. In Pennsylvania, one of ten states that doesn't allow direct shipping of wine to consumers, the only place one can purchase wine is through state-owned liquor stores. For wine connoisseurs looking for a bottle unavailable for purchase in state stores, the only other option is to order their wine through one of the sanctioned "direct wine shippers" and have it sent to a state store. Of course, this adds a certain cost to the purchase (shipping charge, plus $4.50 handling, the state's 18 percent Johnstown Flood tax, 6 percent sales tax, and an addition 2 percent Philadelphia tax). With an average shipping rate of $7 per bottle or $22 per case, this means that a typical $50 bottle of wine would end up costing $74. A case of that wine, which would have cost $600 could cost around $832 after jumping through the Pennsylvania Liquor Control Board's hoops. Of course, Goldman was likely purchasing much rarer and more expensive wines--the tax and shipping costs, assuming the approved direct shipping companies had the wines he wanted--could have been astronomical.Cops paint a picture of a sophisticated racket meant to make Goldman a lot of money, but his lawyer asserts it was more like a group of 15-20 wine connoisseurs for whom Goldman would procure bottles unavailable in the state, only charging them for his costs.
"It was more 15 to 20 people who liked wine like Art, who he would get the wine for."
RELATED: Read how Prohibition may still have an effect -- maybe slowing the craft beer spread.
Pennsylvania may be more extreme than other states, but liquor laws in the whole country are mucked up. Just as an example: If you import, you cannot sell to consumers - you must go through a wholesaler. Wholesalers, in turn, cannot sell to consumers - they have to sell to retailers.
This is sort of like the way Tesla isn't allowed to sell except through local dealerships. Government protecting established companies from competition; in return, you can be sure that some of that money flows the other way.
Or the blue towns here in Texas: Idealists who think they and their neighbors shouldn't drink. You can tell when you're driving into one of these towns, because they are surrounded by a ring of liquor stores just outside the prohibition zone.
a_random_guy at September 2, 2014 10:48 PM
Don't forget, in the Keystone state, if you want to buy beer, you head down to the 'beer store' because grocery stores and the like cannot be trusted with this devil's brew.
I'm pretty sure it's done that way to keep bars happy as they make good money selling 'carry-out' beer.
drcos at September 3, 2014 4:07 AM
I hope he only did charge his costs, because then he can argue he wasnt actually sellling it, just getting reimbursed.
NicoleK at September 3, 2014 5:25 AM
if you want to buy beer, you head down to the 'beer store'
Actually, the locals call it the "state store" because, guess what? the state owns it.
I'm not surprised that a booze monopoly which also happens to have a monopoly on legal force chose to eliminate a competitor. What is surprising is that they intend to destroy the illicit merchandise instead of selling it and keeping the profits.
I R A Darth Aggie at September 3, 2014 6:21 AM
This is just avoiding paying your legally due taxes. Same as cigarette smuggling or even illegal bologna. That said I also feel the taxes are excessive and immoral. But what else is new? Anyone who runs a business knows it is really a partnership. And the government is the majority partner.
Ben at September 3, 2014 6:56 AM
They won't destroy it, they'll drink it and hand it out as gifts - or sell it themselves.
I've known too many cops who have "liberated" drugs, cash and firearms - and laughed about it - to believe that this crew-in-blue isn't salivating over this haul.
Yeah, he should have paid his taxes, but that's easily remedied by making him pay his taxes.
Gog_Magog_Carpet_Reclaimers at September 3, 2014 9:39 AM
They won't destroy it, they'll drink it and hand it out as gifts - or sell it themselves.
I've known too many cops who have "liberated" drugs, cash and firearms - and laughed about it - to believe that this crew-in-blue isn't salivating over this haul.
Yeah, he should have paid his taxes, but that's easily remedied by making him pay his taxes.
Posted by: Gog_Magog_Carpet_Reclaimers at September 3, 2014 9:39 AM
I suspect this too. Just another reason that people no longer trust law enforcement, They operate like the Mafia, but without the Mafia's interest in keeping you in business.
Isab at September 3, 2014 9:46 AM
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