Legislative Activity: Taxes 2009

Bills introduced in 2009. Some states have legislative sessions that span two calendar years instead of beginning and ending during a single calendar year. All of the currently listed 2009 Bills were introduced in states with two-year legislative sessions. Although these bills are not currently active, procedural mechanisms may allow for work on the bills to continue. Thus, we monitor these bills until decisive legislative action is taken or the session ends. Click on your state to find out the latest developments.

Hawaii

Federal

United States House Resolution 836 and Senate Bill 1058
Summary: Reduces the tax on beer to its pre-1991 level. For larger brewers the rate is reduced from $18.00 per 31 gallon barrel to $9.00 and for smaller brewers the rate is reduced from $7.00 per 31 gallon barrel to $3.50.
Sponsor(s): HR 836:Representatives Earl Pomeroy (D-ND); Tom Latham (R-IA); Sam Johnson (R-TX)
SB 1058: Senator Mark Udall (D-CO)

California

Senate Bill 558
Summary: Impose a fee of up to $0.05 per 1.5 ounces of distilled spirits, 12 ounces of beer, and 5 ounces of table wine sold. All funds collected will be used to fund alcohol abuse treatment programs.
Sponsor(s): Senator Mark DeSaulnier (D-Concord)

Hawaii

Senate Bill 42
Summary: Increases the liquor tax rate. The amount has not been set. The increased revenues are to go to a health systems special fund.
Sponsor(s): Senators Roz Baker (D-Maui); Josh Green (D-Hawaii); David Y. Ige (D-Hawaii)

Illinois

House Bill 4557
Summary: Increases the tax rate on the privilege of manufacturing or distributing alcoholic beverages. The increases include, beer from $0.185 to $0.719 per gallon; wine from $0.73 to $2.01 per gallon; and spirits from $4.50 to $8.77 per gallon. Minus the costs of administering the tax rate increases, 55% shall be deposited into the Community Addiction Prevention, Treatment, and Recovery Rescue Fund, 36% shall be deposited into the Community Mental Health Rescue Fund, and the remainder shall be deposited into the General Revenue Fund.
Sponsor(s): Representatives Sara Feigenholtz (D-Chicago), Dave Winters (R-Shirland), Kathleen A. Ryg (D-Vernon Hills)*

Kentucky

House Bill 144
Summary: Lifts exemption and imposes 6% sales tax upon alcoholic beverages from April 1, 2009 to June 30, 2010.
Sponsor(s): Representatives Greg Stumbo (D-Prestonberg); David Watkins (D-Henderson); Rocky Adkins (D-Sandy Hook)*
A victory! Signed by Governor on 2/13/09.

Massachusetts

Senate Bill 759 & House Bill 3489
Summary: Imposes a sales tax of 5% on each vendors' gross receipts on each sale at retail of alcoholic beverages for off-premises consumption. Funds will go to finance substance abuse treatment programs, prevention, and education.
Sponsor(s): SB 759 - Senator Marian Walsh (D-West Roxbury)
HB 3489 - Representative Cleon H. Turner (D-Dennis)

Senate Bill 1254
Summary: Increase excise taxes on alcoholic beverages, including the rate on malt beverages from $3.30 to $9.90 per 31 gallon, alcoholic beverages containing 15% or less alcohol by volume barrel from $1.10 to $4.40 per wine gallon, and alcoholic beverages containing more than 15% but less than 50% alcohol by volume from $4.05 to $12.15 per wine gallon.
Sponsor(s): Senator Cynthia Stone Creem (D-Newton)

House Bill 2684
Summary: Increases the tax rate for malt beverages from $3.30 per 31 gallon barrel to $19.80. All new revenue from the tax shall be allocated to both fund a Criminal Justice Committee and distributed to cities and towns as local aid.
Sponsor(s): Representative F. Jay Barrows (R-Mansfield)

New Jersey

Senate Bill 2013 & Assembly Bill 4104
Summary: Increases the tax rate on alcoholic beverages, including liquor from $4.40/gallon to $5.50/gallon, and wine from $0.70/gallon to $0.875/gallon. The funds raised by the tax increases will go to the Health Care Subsidy Fund.
Sponsor(s): Senator Lorreta Weinberg (D-Teaneck) and Assemblymember John S. Wisniewski (D-Middlesex)
A victory! Signed by Governor on 6/29/09.

New York

Assembly Bill 1078
Summary: Increases the excise taxes on beer imposed on distributors and noncommercial importers from $0.11/gallon to $0.232/gallon. All of this excise tax will go to the newly created substance abuse services fund. Similar to Governor’s proposal (see below)
Sponsor(s): Assemblymembers Jeffery Dinowitz (D-Bronx); Richard Gottfried (D-Manhattan) and Susan John (D-Rochester)*

Assembly Bill 6738
Summary: Increases tax rates on alcoholic beverages, including raising beer from $0.11 per gallon to $1.08 per gallon, wine from $0.1893 per gallon to $2.63, and liquor from $1.70 per liter to $2.26 per liter. Seventy percent of the funds raised will go to the Alcoholism and Substance Abuse Prevention and Treatment Fund.
Sponsor(s): Assemblymember Felix W. Ortiz (D-Brooklyn)

Assembly Bill 8026
Summary: Exempts wine from the state’s sales and use taxes.
Sponsor(s): Assemblymember Peter J. Abbate, Jr. (D-Brooklyn)

Assembly Bill 8465
Summary: Imposes an additional fifty cent tax on every liter of liquor sold. The tax is to be in effect for 4 years and is to be used to fund a sexual assault DNA registry trust fund.
Sponsor(s): Assemblymember Peter Rivera (D-Bronx)

Assembly Bill 8576 and Senate Bill 6096
Summary: Repeal the tax increase imposed on beer and wine as part of the Governor's 2009-2010 Budget. All funds collected as a result of the increase from $0.11 to $0.14 per gallon on beer and the increase from $0.1893 to $0.30 per gallon on wine are to be returned.
Sponsor(s): Assemblywoman Addie Jenne Russell (D-Theresa); Senator Joseph A. Griffo (R-Rome)

North Carolina

House Bill 731
Summary: Creates new tax categories and rates for beer based upon alcohol by volume. Beer with not more than 6% alcohol by volume will be taxed at the current rate of $0.53177 per gallon. Beer with more than 6% and including 16% alcohol by volume will be taxed at a new rate of $0.79485 per gallon. Beer with more than 16% alcohol by volume will be taxed at a new rate of $0.9084 per gallon.
Sponsor(s): Representative Edgar Starnes (R-Caldwell)
House Bill 1579
Summary: Increases the excise tax rate on alcoholic beverages including, beer from 53.432 cents to 57.432 cents per gallon; unfortified wine from 21 cents to 22.68 cents per gallon; and liquor sold in ABC stores from 25% to 27%.
Sponsor(s): Representatives Verla Insko (D-Orange) and Sandra Spaulding Hughes (D-New Hanover)

Pennsylvania

House Bill 874
Summary: An emergency tax of 18% is imposed on all liquor sold by the state board starting January 1, 2010. The rate decreases to 9% in 2011, 6% in 2012, 3% in 2013, and zero percent in 2014.
Sponsor(s): Representative Stephen E. Barrar (R-Delaware)
Bill 1555 and Senate Bill 867
Summary: Establishes the Drug and Alcohol Treatment and Prevention Fund, and provides for the deposit of 12.85% of the liquor tax rate in the immediately preceding fiscal year into the fund. The fund will be used for alcohol and drug detoxification and rehabilitation services, behavioral health services, prevention, treatment, intervention and case management.
Sponsor(s):
HB 1555: Representatives Kathy M. Manderino (D-Philadelphia), Katie True (R-East Hempfield), John C. Bear (R-Lancaster)*
SB 867: Senators Pat Vance (R-Cumberland), Wayne Fontana (D-Allegheny), and Edwin B. Erickson (R-Chester)*

South Carolina
Senate Bill 68
Summary: Replaces the excise tax of 5% of gross proceeds of the sale of alcoholic liquors by the drink with a license tax on wholesalers imposed at the rate of $0.66 /liter. This tax is in addition to two existing taxes totaling to tax alcoholic liquors at a rate of $0.72 /liter.
Sponsor(s): Senator Robert Ford (D-Charleston)

Tennessee
Senate Bill 714 and House Bill 1735
Summary: Increase the tax rate on alcoholic beverages. The wine tax rate will be increased from $1.21 to $1.45 per gallon, spirits will be increased from $4.40 to $4.85 per gallon, and beer from $4.29 to $4.72 per 31 gallon barrel. The sales tax rate for alcoholic beverages consumed on-premises will be increased from 15% to 16%. The tax increases will be used to fund crime prevention grants.
Sponsor(s): Senator Reginald Tate (D-Memphis), Representative Karen D. Camper (D-Memphis)

Wisconsin

Senate Bill 209 and Assembly Bill 287
Summary: Increases the tax rate on fermented malt beverages (such as beer) from $2 to $10 per 31-gallon barrel ($0.0645 to $0.3226 per gallon) and at a proportionate rate for other quantities. The funds collected from the increase will be used to fund enforcement, treatment, and prevention programs.
Sponsor(s): Senator Fred Risser (D-Madison), Representatives Terese Berceau (D-Madison), and Kelda Roys (D-Madison)*

Assembly Bill 547
Summary: Beginning July 1, 2010, deposit $10 million from revenues generated by the wine and liquor tax into the intoxicated and drugged driver fund. Currently, all revenue from the tax is deposited into the general fund.
Sponsor(s): Representatives Peggy Krusick (D-Milwaukee), Jim Ott (R-Mequon) Garey Bies (R-Sister Bay)

Please also see our Alcopops page and Advertising page for additional legislation.

*More than 3 sponsors listed.

Marin Institute

Legislative Activity: Taxes 2009