Tax Threats Beginning to Surface

Legislation to increase beverage alcohol taxes already has been introduced in 15 states, despite the fact most states are anticipating budget surpluses in 2007. A plan that ties tax increases to funding for various medical or social programs is a recurring feature in many of these proposals and indicates that anti-alcohol activists around the country are collaborating on a new strategy to convince legislators to increase taxes on the hospitality industry.

Additionally, there have been several proposals to grant local governments the authority to increase alcohol taxes on their own. Some of these proposals would grant broad authority to all municipal jurisdictions statewide, while others would convey authority on specific towns to increase certain taxes. These proposals and/or legislation have surfaced in Indiana, Ohio, Pennsylvania, Vermont, West Virginia, and Wyoming.

For more information on alcohol taxes, visit www.discus.org or www.bevretailspotlight.org.