2007 Tax Climate Taking Shape

As an industry, beverage alcohol always seems to be a target for tax increases. Year after year, dozens of state officials attempt to increase taxes on spirits, beer and wine - in spite of beverage alcohol's importance to the hospitality industry. It is unlikely that 2007 will be any different.
    In fact, a bill to increase beverage alcohol taxes by an additional 1 percent already has been introduced in Colorado, and it is likely that there will be at least one other attempt in this state during the upcoming session. Although this is the only materialized threat at this time, there have been rumblings in other states, such as the Minnesota Medical Association's support for a 10-cent-per-drink tax increase to fund prevention, detox and treatment programs.
    Fortunately, not all news has been bad. Chicago Mayor Daley recently announced a "no-tax-increase" budget for 2007, and most states have been financially healthy for the past two years. Only time will tell.
To keep abreast of important developments, visit The Distilled Spirits Council of the United States at www.discus.org .