Supermarket News just ran a story that says the following:
"Initially, Patterson estimated that the measure would bring in $147 million over two years from a one-time franchise fee that retailers interested in selling wine would pay, per store. But in order to help plug a $750 million budget gap, he increased the fee that would be required of stores with gross sales of over $1 million. And not just by a little.
Given the higher revenue projections, proponents are hopeful wine at grocery will pass. But it remains to be seen whether the franchise fee will be too high for widespread participation. Without adequate retailer buy-in, there is a chance that more revenue would have been produced under the old plan."
And, a little further down they conclude:
"Patterson may have failed to do his homework."
So, apparently even the supermarket industry feels that the higher franchise fee will actually produce LESS money than the governor's original proposal because it will cause many stores to not buy-in at the higher franchise fee level. I guess that's what happens when the desperate Governor uses PFTA (Pluck From The Air) to get income projections for his amended WIG franchise fee proposal. Oops.
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