Proposed budget could impact wineries

WATKINS GLEN, N.Y. – "We can't balance the budget entirely on small business and I feel like that's what's happening here," said Chris Stamp, President of Lakewood Vineyards.

More than ever, wine makers across the state may soon feel the effects of the tumbling economy, thanks in part, they say, to Governor Paterson's budget proposal. He's calling for an increase in the excise tax, raising it from 19 to 51 cents per gallon.

"It's unfair to put the burden on the wine industry, to extract more money from us in the form of excise taxes," Stamp said.

Stamp says if the excise tax makes it through to the final budget, business is going to be tough. 

"For the 80,000 gallons we make at the Lakewood Vineyards, in addition to the excise tax we already have to pay, we're going to have to pay $24,000 in taxes," Stamp said.

But some wine makers say the biggest blow would come from the proposed elimination of promotions funding where advertisements for the Seneca Wine Trail can be seen across the state.

"It's just like any enterprise competing on a national even global scale. You have to market your product. If we don't, someone else is going to acquire that business," Stamp said.

Under the proposal, funding for the New York Wine and Grape Foundation, a move Smith says would have a huge impact on business. For now, vineyard owners must wait to see what will happen at the capitol.

"We all have to tighten our belts and be careful where our money is spent, but one thing we're not going to do is cut back on the quality of the wine, we're going to keep on doing what we do as efficiently as we can," Stamp said.