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LWVMD Testimony on Alcoholic Beverage Tax-Rates

Presented To: 
Senate Budget and Taxation Committee
Date: 
3 Nov 2007
LWV Position: 
Support
The League of Women Voters of Maryland supports the proposed increase in state tax rates for alcoholic beverages in Maryland. There has been no change in the Maryland tax on distilled spirits since 1955 or in the tax on beer and wine since 1972. As a result, Maryland’s alcoholic beverage taxes are well below the median for the 50 states plus the District of Columbia. Income to the state from the proposed legislation would increase by more than $40 million per year in the case of HB 13 and $70 million per year in the case of HB 32. We can also support these bills because of the deleterious health effects of alcohol consumption - particularly on teenagers. An increase in the price of such beverages should lead to a decrease in alcohol use in that vulnerable population. At a time when the state is in need of considerable additional revenues, we believe that an increase in the alcoholic beverages taxes is merited.
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