Threat of new state tax on wine returns (Santa Rosa Press Democrat)

Viticulture briefs
Santa Rosa Press Democrat
March 22, 2009

Just weeks after being dropped during state budget negotiations, the threat of a new state tax on wine has returned.

California legislators have introduced separate bills in recent weeks calling for 10-cent and 5-cent per drink taxes on alcohol.

Assembly Bill 1019 calls for a 10-cent per drink tax. It was introduced Feb. 27 by Assemblyman Jim Beall Jr., D-San Jose, who made it clear he's no wine lover.

"The alcohol industry creates devastating problems -- traffic accidents, alcoholism -- and walks away with money stuffed in its pockets while the public -- including non-drinkers -- are left to pay billions for the mess," reads a statement on Beall's Web site.

Senate Bill 558, introduced Feb. 27 by state Sen. Mark DeSaulnier, D-Concord, calls for the state Department of Alcoholic Beverage Control to collect a 5-cent "fee" per drink and establish an Alcohol Abuse Treatment Program Fund.

To date, neither bill has been set for a hearing and vote. The Wine Institute is working to defeat both bills.