» Commercializing highway rest areas and privatizing liquor stores is worth considering if it will generate revenue for the state.
Democratic Gov. Tim Kaine and Republican gubernatorial candidate Bob McDonnell each have high-profile ideas for generating some much needed state revenue. Kaine, on the heels of closing 19 highway rest stops as a cost-cutting measure, is seeking federal permission to commercialize Virginia’s rest areas. McDonnell wants to privatize the state’s liquor stores, which are run by the Virginia Department of Alcoholic Beverage Control.
There are reasons to be concerned about both plans. Business owners already established along busy highways could be hurt by the addition of fancy rest stops with multiple fast food options, gas and gift shops. Government-controlled liquor stores are easy to regulate and provide a steady stream of income.
But with the state severely strapped for cash, legislators must give serious thought to whether the benefits outweigh the risks. Plenty of isolated stretches of highway in Virginia could use a commercialized rest stop, and anything that encourages travelers to pull over here rather than waiting to get to Maryland, North Carolina or another neighboring state is positive.
The privatization of liquor stores would generate about $500 million to fund transportation needs, according to McDonnell. The state government would still collect sales tax on the alcohol, but would also collect property tax from the store owners while eliminating the cost of running the stores itself.
A bonus to the consumer would be the introduction of a free market. Any Virginian who has bought a bottle of liquor in Maryland can tell you that competition drives down price.
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