Drinking in Boston: New Tax On Alcohol

We’ve been living a carefree, tax-free lifestyle in the world of liquor for a while now. That all could change soon. Lawmakers finalizing the 2010 budget are proposing a hefty tax on alcohol. They have raised the general sales tax from 5% to 6.25% and are now applying that to the sale of all beer, wine, and alcohol sold in stores.

On one hand, the money from the tax is being sanctioned for a good cause: substance-abuse programs. It sometimes seems that programs for addiction and other mental health issues get the shaft when it comes to funding. The estimated revenue from these taxes is 80 million dollars.

On the other hand, this tax could put a huge burden on liquor store owners and brewers, especially smaller craft brewers. Alcohol may not have a sales tax, but it already deals with excise taxes. These are taxes levied most often on alcohol and tobacco: they are often referred to as the “sin taxes.” The tax is on the production or sale of goods produced in this country. And needless to say, the owners of liquor stores in northern Massachusetts are especially frightened by the prospect of a new and weighty tax. Many people already drive to New Hampshire for cigarettes, so why not alcohol?

Both Harpoon and BeerAdvocate have spoken out against the tax. If you too are against the tax, we suggest checking out the BeerAdvocate article about what to do next, which includes a sample letter to send to your representative.

This is something that’s being discussed right now by legislators, so pro or con, it is something to watch in the upcoming weeks.