Saturday, April 18, 2009

Malt Beverage Tax Increase being considered by Senate!

I just got an Action Alert from the Vermont Grocers' Association that I thought you should all read. According to the VGA's Legislative Report for 4/17, the Senate is considering raising taxes on soda, candy, water, beer, wine and liquor. Their immediate concern is over a huge tax hike on "Flavored Malt Beverages." You can read the Action Alert below. Please consider calling or emailing the Senators ASAP.

Thanks!
Jeff

Large Flavored Malt Beverage Tax Hike under Consideration by Senate

Senate Finance Committee considering Malt and Liquor Taxes
Calls & emails from retailers needed now!

Late Friday afternoon, the Senate Finance Committee asked their legislative council to draft a new tax bill that is expected to include increases in the state's liquor taxes and a dramatic increase in the excise tax on flavored malt beverages. FMB's include malt beverage products such as Mike's Hard Lemonade, Twisted Tea, Smirnoff Ice, etc.

All malt beverages in Vermont under 6% alcohol (including FMB's) have an excise tax of 26 cents per gallon and a sales tax at retail (added two years ago). Malt beverages over 6% (specialty beers) and wine have an excise tax of 55 cents per gallon plus a retail sales tax. Senate Finance Chair, Senator Ann Cummings, recommended that the tax bill be drafted this weekend with the FMB tax as high as possible, possibly over $5.00 per gallon, a whopping 1900% tax increase.

An increase of this magnitude on what is already a higher priced malt beverage will likely price them out of reach and force them off store shelves.

The committee is returning Monday morning at 9:30 to resume their review of the tax bill. They may also consider other taxes, such as a new beverage tax depending on the juice content, tax on bottled water and a tax on snack food.

It is very important to contact your state senator(s) and members of the Finance Committee ASAP and urge them to oppose new beer or FMB taxes on Monday.

Senate Finance Committee
Senator Ann Cummings, Chair, Washington County, acummings@leg.state.vt.us, (802) 223-6043
Senator Claire Ayer, Vice Chair, Addison County, cayer@leg.state.vt.us, (802) 545-2142
Senator Bill Carris, Rutland County, bcarris@leg.state.vt.us, (802) 438-5391
Senator Robert Hartwell, Bennington County, rhartwell@leg.state.vt.us, (802) 362-5757
Senator Mark MacDonald, Orange County, mmacdonald@leg.state.vt.us, (802) 433-5867
Senator Hull Maynard, Rutland County, Hull@sover.net, (802) 773-3000
Senator Dick McCormack, Windsor County, rmccormack@leg.state.vt.us, (802) 234-5497

A full list of state senators can be found at:
http://www.leg.state.vt.us/lms/legdir/districts.asp?Body=S

Faxes can be sent to 802-828-2424 (must be addressed to a specific legislator). Messages can be taken at the Sergeant of Arms office M-F at 1-800-322-5616

3 comments:

Erin said...

So in real terms, that means that a 6-pack of malt beverages would cost about $2.65 more ($2.80 tax vs. $0.15 tax per 6-pack)... if I did my math right.

Is the idea to dis-incent youths from buying/drinking a cheap, sweet, tasty beverage by making priced more like microbrews or is this just an attempted cash grab?

ShareYourVoice said...

VERMONT – HAVE YOUR VOICE BE HEARD

Vermont’s General Assembly members are looking for ways to bring money into the state treasury. One of the things they are looking at is increasing excise taxes on flavored beers by almost 500%. Some legislators are even considering an increase on current taxes of almost 2,000%

A tax hike on flavored beer is a very bad idea that hurts consumers, small businesses and the economy.

Encourage your friends and family to take action by joining our group, and by filling out the form http://www.axetaxesnotjobs.com/ so they can join the fight against irresponsible and regressive taxes.

Thank you!

Jeff said...

ShareYourVoice -
Thanks for the info. The website is clearly sposored by Diageo, but it's a great resource for quickly and easily sending an email to state legistlators regarding tax hikes on alcoholic beverages. Thanks for posting!
-Jeff