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Friday, March 25, 2011

Alcohol Tax Increase Advances To Full Senate

For the first time in more than four decades, a Maryland legislative committee has approved an alcohol tax increase.

The Senate Budget and Taxation Committee today advanced a plan to bump tax on alcohol from 6 to 9 percent over the next three years. Alcohol taxes would go up by one percentage point per year.

Budget Chairman Edward Kasemeyer noted the historic nature of the committee's move, saying most Marylanders "probably wonder why it has taken so long."

If it wins general Assembly approval, the tax increase is expected to pump about $30 million into state coffers next year and $85 million once it is fully implemented. The House of Delegates has yet to vet the plan.
Although the new revenue would go into the state's general fund, the Senate committee has plans for it next year: $5 million would assist people with developmental disabilities, $8.8 million would flow to Prince George's County, and Baltimore City would receive $12.2 million.

Because Prince George's County has grown relatively wealthier, state aid has dropped, something the alcohol tax money would help assuage. Baltimore would use the money to pay for increasing costs of retired teachers' health care.

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2 comments:

Anonymous said...

It's typical tax and spend government. Advocate groups for years have propsed increases in the taxes to reduce alcohol consumption by minors and nothing. When they need more money they pass it the first time.

Anonymous said...

Time to start buying my booze a few miles north of here.....since I drive back and forth on a regular basis, I don't even need to make a special trip.....