When Buda voted in 1999 to become "damp," meaning that some alcohol sales were allowed, the city's sales tax revenue more than doubled in one year. Now city leaders are hoping the recent passage of Proposition 1, which will allow bars and liquor stores in the city limits, will have a similar effect.
The proposition passed Nov. 6 with 79 percent of the vote and will allow businesses to apply for annual liquor store permits for $1,501 and beer and wine permits for $673, as opposed to the old mixed-beverage permit, which was $6,602. Kyle passed a similar law during its election in May.
John Hatch, a partner with Texas Petition Strategies, headed the effort in 1999 and worked on the most recent proposition. After the 1999 election, H-E-B moved into town, and according to figures from the state comptroller, Buda's annual sales tax revenue jumped from $451,793 in 2000 to $978,905 in 2001.
"It's not just beer and wine," Hatch said. "When the grocery store has to make room for beer and wine, well, somebody has got to deliver that now. And when you've got this many places now delivering, they've got to hire more drivers, they've got to hire more stock boys, and those people pay taxes and those people buy groceries, and it multiplies."
In May, Buda had five establishments reporting mixed-beverage taxes to the state comptroller's office. In November, that number had risen to eight.
"I don't want Buda becoming known as 'the bar town,'" said Tommy Poer, a Buda resident since 1957 and a regular at Buda City Council meetings.
Poer was the most vocal opponent of relaxing the city's liquor laws.
"I've been accused of being anti-growth, but I'm not," she said. "I have said that I would like for it to be smart growth and for us to look at things before we let everything in the world come in."
Former Place 3 Councilwoman Sandra Tenorio, Buda Economic Development Corp. board president, said while she is leery of disturbing Buda's "small-town feel," she can see the Tavern on Main and Buda Grocery and Grill's expansion already starting to bring a new feel to Buda's downtown.
"What you're seeing different that you hadn't seen before was downtown on a weeknight, when it should be dead, you can drive by, and this place is packed with cars at both places with people just hanging out and having a drink and watching something," Tenorio said. "Now you can say, 'Why don't you meet me there at 6?' instead of having to go to Austin."
Kyle
Kyle's liquor election in May allowed restaurants to apply for wine and beer permits as opposed to the costlier mixed-beverage permits. Liquor stores were already allowed within Kyle's city limits.
Nearly six months after that proposition was passed, James Rios announced he would be opening Center Field Sports Bar, the city's first bar with a beer and wine permit, on Dec. 8. Had the city's voters not approved the proposition in May, Rios said he would not have come into town.
"There are a lot of places where, to have a restaurant and to get a liquor license, you have to be 51 percent food and 49 percent alcohol, and that's extremely tough," Rios said. "It's very hard to keep that ratio, and it's a stretch that as a business owner you don't need."
In May, Kyle had 10 businesses reporting mixed-beverage taxes to the state comptroller, and by November, that number had increased to 11. Kyle's mixed-beverage sales tax was $10,686 for the monthly reporting period ending May 21. That increased to $14,868 for the period ending Nov. 26.
Long-term effects
In 2004, the City of Woodway, a suburb of Waco, held a similar election to determine its wet or dry status. Before the election, Woodway was completely dry, meaning the sale of all alcoholic beverages was illegal.
Yousry Zakhary, city manager and public safety director of the city, said the direct sales tax effect from alcohol sales has been negligible.
"Dollars and cents, we have not seen a true figure we can put our fingers on, but economic development, we have seen some great opportunities," Zakhary said.
Advocates for remaining dry have argued that alcohol sales could lead to increases in crime. Zakhary said there has been a slight increase in forgeries, thefts and burglaries since 2004, but he said he attributes very little of the increase to alcohol sales.
"We haven't had to add police officers, and we haven't had to reduce our responses because of the alcohol sales and liquor," Zakhary said.
Hatch said estimating the effect the new regulations will have on the area is difficult because although according to the 2010 census there are 7,295 residents in Buda, there are more who live in the surrounding area and spend money in the city. The fact that the city is on I-35 and commuters passing through might stop by one of the city's liquor stores or bars further complicates things, Hatch said.
Poer said since the proposition passed, she will not fight it any longer. Her 83 years have taught her that much, she said.
"Yesterday is history," Poer said. "It's history, and you learn to accept things, like it or not."
