December 15, 2006

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Exicse Taxation

By Ken Lane @ 2:16 pm - Filed under: Contributors, alcohol and tax

If you think your income taxes or your property are too high consider for a moment the tax burden on the average American when he or she purchases a bottle of spirits.  On average combined federal and state excise taxes alone (not counting sales and other taxes that apply) account for 26 percent of the price of a bottle of spirits.  For a bottle of wine that number is 8 percent and for a six pack of beer it’s 9 percent.

While lawmakers are generally hesitant to raise income, property or sales taxes they are less so when it comes to spirits.  In any given year excise tax increases are introduced in two to three dozen states.  And they are introduced in states that are running budget surpluses, in other words, states that don’t need the money.  In fact, since 1980 excise taxes at the state level have been raised a whopping 99 times.

Many states’ legislatures will be reconvening next month and lawmakers will begin grappling with state budget issues.  If the past is any blueprint for the future we can expect dozens of proposals that will increase taxes on beer, wine and spirits.  We will continue to fight these proposals and hold the line on what already amounts to excessive taxation on the distilled spirits industry and our consumers.

November 17, 2006

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Post Election Updates

By Ken Lane @ 5:48 pm - Filed under: Contributors, Sunday Sales

While the dust has mostly settled around the results of last Tuesday’s historic election, we continue to get reports from around the country on voters approving of alcohol beverage sales in one form or another.  Here’s an update.

For the first time in 70 years citizens in Angelina County, Texas will be able to purchase alcohol beverages — because voters approved Proposition 1 and 2 which allows beer and wine to be sold for off-premise consumption and mixed drinks to be served  in restaurants and bars (without customers first having to “purchase a membership”).

And in Haywood and Hardeman Counties in Tennessee voters approved liquor by the drink — which means if you go to a restaurant or hotel in either of these counties you’ll be able to order up your favorite drink (in those establishments that have obtained the proper license).

Residents in Weller Township,  voted to “go wet”.  In other words you will soon be able to by a beer, wine or mixed drink in a restaurant in that town.

Similarly, voters in Zeeland, Michigan have ended a century-old ban on alcohol sales so someday soon (that is, relative to the 100 year ban) you’ll be able to get a drink at a restaurant or buy alcohol beverages at the grocery store.

Also, voters in Dawson County, South Carolina voted to allow the package stores in that county to open on Sunday.

Lastly — and to update you on an item my colleague mentioned last week — voters in Oklahoma approved a measure that will permit alcohol sales on election days.  Halleluiah.

Numerous other measures regarding the sale alcohol beverages were voted on last week and we’ll continue to update you as those results come in.