North Andover Liquor Stores Pleased but Cautious with Passage of Question 1

North Andover liquor storeowners are pleased, but cautious after Some stores thanked their customers on their Web sites and via emails.

There had been a substantial drop in local business when the 6.25 percent sales tax on liquor went into effect in August 2009. Storeowners saw their customers flee to New Hampshire to buy wine, beer and liquor.

The repeal, voted 52 percent to 48 percent, is binding and will go into effect on Jan. 1, 2011.  Supporters of the repeal had cited a "double tax" on alcohol, formed when the new sales tax was added to the pre-existing federal and state excise tax.

According to William Burliss, owner of "It will improve, but will take some time to get it back to what it was before the tax went into effect."

Burliss said that he used to sell bottles of wine ranging from $100 to $400 before the liquor sales tax.

"If a customer is buying quantity that price can add up," he said. He is not sure he will regain that business.

Bill Buco, owner of  is also cautious and said, "People are creatures of habit."  He cited that friends of his who own stores closer to border such Haverhill and Lowell who lost sales up to 25 percent and explained that it would be hard to make up that loss. 

He said his sales on hard liquor were most affected by the sales tax.

Adding to the difficulty, Buco said that the State of New Hampshire, which operates state liquor stores, is very aggressive in its advertising. He explained when the tax here went into effect, New Hampshire had billboards, radio and newspaper ads that enticed Massachusetts consumers to shop there.

Buco said he wouldn't be surprised if New Hampshire ran another advertising campaign at the time the repeal goes into effect.

"New Hampshire can buy liquor in railroad cars and distribute it to their stores," he said.

He explained that New Hampshire liquor cost is less to begin with because they only have the federal tax, which is imposed on all liquor in the nation.  Massachusetts has always had a state excise tax, and making it worse was the added sales tax.

He also said that New Hampshire can sell below wholesale, and in Massachusetts, the stores cannot. This is especially true of the supermarkets that do not solely count on profit from sales of wine and beer, he said.

Both Burliss and Boco who both own family businesses said that New Hampshire stores do not have the selection or personal service that they offer.

"We sell without attitude," said Burliss.