E-Malt.com News article: USA: Lawmakers consider to increase tax on beer

Lawmakers are considering a tax increase on beer, and proponents say the mental health and substance abuse treatment that would benefit are good causes, according to Associated Press, December 6.

Wyoming currently taxes beer at 2 cents per gallon. A draft bill before the Select Committee on Mental Health and Substance Abuse would raise that to 6.5 cents per gallon.

By volume, the tax on beer is low. Wine is taxed at 28 cents per gallon. The tax on hard alcohol is 24 cents per gallon.

But Wyomingites drink enough beer that the increase would raise an additional $607,500 a year, based on the $270,000 raised by the current 2 cent tax each year.

The additional revenue would be part of $14.5 million the bill would add to the state's substance abuse account. Proponents say the Legislature likely would find that approach more palatable than a bill just to increase the beer tax.

"I think people are going to be real leery about a beer tax," said Rep. Keith Gingery, co-chairman of the Select Committee on Mental Health and Substance Abuse.

At least one lobbyist already opposes the bill. Mike Moser, of the Wyoming Liquor Association, said higher taxes on alcohol aren't necessary.

"You're charging people for a problem that's not theirs," Moser said. "Consumers of alcohol are not the same thing as problem drinkers."

He likened the proposed tax increase to taxing Twinkies to pay for the costs of obesity.

Gingery's committee has been working for three years on developing a regional approach to mental health services in Wyoming. The goal is to set up five regions in the state with services like acute mental health care and a crisis center in each region.

A separate committee bill would appropriate $18 million to complete the regional system.


07 December, 2007