[Vision2020] Beer, Wine Tax Bill Turned Down

[Tom Hansen]

A viable alternative to increased beer tax:
http://www.beermachine.com/
 
Courtesy of today's (February 26, 2009) Spokesman Review.

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Beer, wine tax bill turned down
Intense lobbying preceded rejection of measure to raise treatment money
Betsy Z. Russell / Staff writer

House Bill 140 (PDF Format)
http://www.legislature.idaho.gov/legislation/2009/H0140.pdf
  
BOISE – After three days of hearings and an intense lobbying campaign, 
Idaho lawmakers Wednesday rejected legislation to raise the state’s beer 
and wine tax.

House Bill 140 would have raised a tax that hasn’t been raised in four 
decades to pay for substance-abuse treatment services. The state has 
expanded the services in the past few years in an effort to trim its large 
prison population.

The House Revenue and Taxation Committee voted 13-5 to kill the bill, a 
lopsided outcome in a vote expected to be close.

“It was a good vote,” said Bill Roden, lobbyist for the Idaho Beer and 
Wine Distributors Association. “We worked at it.” 

A coalition of groups – retailers, wineries, breweries and “the general 
business community” – helped the lobbying effort, Roden said.

North Idaho committee members split on the vote. Rep. George Sayler, D-
Coeur d’Alene, favored the bill, while Reps. Jim Clark, R-Hayden Lake; 
Dick Harwood, R-St. Maries; and Phil Hart, R-Athol, voted to kill it.

House GOP Caucus Chairman Ken Roberts, R-Donnelly, said he said he thought 
the bill was flawed.

But, he said, “I want to make sure I give notice to the beer and wine 
industry that it is time to step up to the table and have an increase that 
is supported by that industry, to help fund substance abuse treatment in 
this state.” 

Rep. James Ruchti, D-Pocatello, said, “This is not the right time to be 
raising a tax on Idaho’s businesses.” Doing so, he said, “would send a 
message that their government doesn’t get it.”

Several industry lobbyists told the committee they would never support any 
increase in Idaho’s beer or wine taxes.

Clark questioned advocates who said the measure would provide a “stable” 
funding source for substance abuse services. “I’m not sure beer and wine 
drinkers are a real stable revenue source,” Clark said.

Keith Allred, a former Harvard professor and the bill’s sponsor on behalf 
of the good-government group the Common Interest, countered, “There are 
few products you can find that are more recession-proof than beer and 
wine. That speaks to the stability.”

Several lobbyists who opposed the bill said responsible drinkers shouldn’t 
have to pay for substance abuse services they don’t need, though Allred 
said the alternative is that nondrinkers pay for the services through 
general tax funds, rather than those who do drink. He said research shows 
that those who abuse alcohol drink by far the most alcoholic beverages, 
and thus would pay most of the tax.

Harwood said rather than focus on treatment, perhaps Idaho should focus on 
education and prevention. 

Rep. JoAn Wood, R-Rigby, who urged lawmakers to support the bill, 
said, “This is a powerful lobby that’s been lobbying us. … I resent having 
people in my district come to me and tell me they’ve been threatened with 
losing their jobs (if the bill passes). … I think that is unconscionable.”

Sayler said, “I question the argument about ‘the time is not right.’ My 
question is, if not now, when? … It hasn’t been the right time for 48 
years.”

Roden, asked afterward if he’d still work with the bill’s proponents this 
year toward a compromise, said, “I don’t think there’s time this year to 
really consider it.”

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Cheers, Moscow.

Tom Hansen
Moscow, Idaho
 
“Beer is proof that God loves us and wants us to be happy.”

- Benjamin
Franklin

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