What's On Tap? Possible Alcohol Tax Hike
Controversy Brewing At State House Over Price Of Beer
ANNAPOLIS, Md. -- Lawmakers in Annapolis are considering legislation that would hike the state's alcohol tax.
The Senate Budget and Taxation Committee heard testimony Friday the bill that could raise the price of a glass of beer by as much as a nickel, WBAL-TV 11 News reporter David Collins reported.
The state Senate is considering increasing the tax on alcohol -- including beer, wine and hard liquor.
This brouhaha historically pits the hospitality and alcohol industry against good intentions, Collins said.
"We're not that happy with it," said Michael Gulway, an Annapolis restaurant owner.
"I think that's ridiculous," said Alicia Hogan, a wine connoisseur.
But the bill's sponsor, Montgomery County Sen. Ida Ruben, D-District 20, believes a tax hike would accomplish several goals.
"The alcohol tax has not been increased since 1955," Ruben said. "We have to do everything we can to prevent the (drunken) driving issue and this is a way to do it."
The bill substantially increases the tax rates, as follows:
- Hard liquor: from $1.50 to $4.50 per gallon
Beer: from 9 cents to 27 cents per gallon
Wine: from 40 to cents to $1.20 per gallon
For consumers, that could mean another nickel to the cost of a drink.
"It's already costing me $4.50 to $5 for a little glass. I complain all the time because I could go into a liquor store and pay $5 for a whole bottle," Hogan said.
Those in the restaurant and hospitality industry said there's a sin tax with a bull's-eye painted on their backs.
"One of the problems is that, right now, they're talking about not smoking, they are talking about increasing the minimum wage, then, (they) add a sales tax increase also," Gulway said.
Bill supporters believe the bill will curb drunken driving and said the more than $51 million in estimated revenue could beef up children's programs and senior services, Collins reported.
Similar bills have failed in the past. There's no word on when the Senate Budget and Taxation Committee could possibly vote on the bill.
My call is for another Sam Adams!
"Barkeep, which way to the harbor?"
