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House GOP leader outlines bill to privatize liquor stores

HARRISBURG — Pennsylvania would collect a massive one-time windfall and provide better customer service by selling off wine and liquor stores and doubling the number of retail outlets, a senior Republican in the state House of Representatives said Wednesday.

Majority Leader Mike Turzai, R-Allegheny, wants to eliminate the 18 percent Johnstown Flood tax and the Pennsylvania Liquor Control Board’s 30 percent markup, instead imposing a per-gallon tax like those in 26 states for liquor and 35 states for wine.

Turzai’s office provided a fact sheet on his legislation, expected to be formally introduced in the next week, saying it would lead to the auctioning of 1,250 retail licenses — 750 for larger outlets and 500 for smaller businesses, typically independently owned. There are about 620 state-owned stores in Pennsylvania.

Turzai said selling retail and wholesale licenses could generate up to $2 billion, and the annual tax revenues to the state would remain the same or increase.

He called the plan “an idea whose time has come.”

Other provisions would grant local police more power to enforce liquor laws and mandate identification scanners with age-verification software. A scaled-down Liquor Control Board would remain in place to issue licenses, regulate the industry, enforce state laws and perform education functions.

Turzai’s proposal would sell off wholesale licenses under a complicated formula, and includes measures to prevent bid-rigging or monopolies, he said.

He envisions a system where the state is covered geographically by retail outlets, with a mix of large retailers and more narrow purveyors such as specialty wine shops.

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