PROPOSAL FOR NEW ALCOHOL TAX
IT’S BACK! Yes, the issue that won’t go away . . . alcohol tax. City Council President Bill Linehan and City Councilor Frank Baker filed paperwork in February to begin a process that could result in a substantial new citywide tax on the sale of alcohol, and to use the millions of dollars in expected revenue exclusively on substance abuse prevention and treatment programs. The proposal, if passed by both the City Council and the State Legislature, would impose a tax of 1 to 2 percent on all alcohol sales, including beer and wine, in city restaurants, taverns, bars, supermarkets, and package stores.
Alcohol is already subject to an excise tax, and the Legislature passed a state law in 2OO9 to add a sales tax of 6.25 percent on top of the excise tax. But voters repealed that new sales tax on alcohol, 52 percent to 48 percent, in a statewide referendum in 2O1O. Proponents had promised to use a portion of the money raised to underwrite treatment programs. Last year, Linehan and Baker proposed adding a sales tax on alcohol at supermarkets and package stores. But they dropped the proposal after hearing from retailers who complained that the proposal unfairly singled out their industry while leaving alone alcohol sold at restaurants, taverns, and bars. That led to this year’s proposal, which is still being met with opposition. “We are opposed to an increase in the sale taxes,” said Frank Anzalotti, Executive Director of the Massachusetts Package Stores Association. “Alcohol is already taxed. It would mean a tax on a tax.”
“We just can’t turn to an increase in taxes whenever there’s a problem,” said Bob Luz, President and Chief Executive Officer of the Massachusetts Restaurant Association. Asked about the proposal, the office of Mayor Martin J. Walsh released a statement saying that the mayor “understands the critical need for additional funding for treatment programs in Boston,” but was noncommittal on support for the measure. No vote on the measure is likely to come for at least several weeks. If the City Council passes it, the proposal – known as a home rule petition – would have to be approved by a majority vote of both the House and the Senate and signed by the governor.
