Bill to Increase Beer & Wine Tax Creates Controversy

Boise, Idaho -- Drink up while you can.  Downing a cold one or sipping some wine could soon cost more if legislators pass a new bill that would increase alcohol taxes to fund more substance abuse treatment.

The issue is so charged it's taking three days of hearings just to get through all the public's comments.  Even among the Common Interest Group, which is driving a bill to more than triple taxes on beer and wine, there doesn't seem to be much common interest.

"This way the users will be paying for the treatment of the people who abuse the product.  It's a user fee," said Laurynda Williams, a member of the Common Interest Group.

"Even though I'm virtually a tee totaler and a member of the Common Interest Group, I don't support this legislation.  It's basically just taking money and spending it on ineffective techniques," said Dwight Callaway, a member of the Common Interest Group.

And that back and forth, is exactly how it's gone for two days. More than 60 people have testified before the House Revenue and Taxation Committee. Plenty of them passionate about a tax that would cost drinkers a few extra cents per glass.

"The economy is tough right now and any tax that specifically an industry specific tax is a bad idea," said Chuck Everett, who represents the Lodging and Restaurant Association.

And some wine and beer producers claim the extra cost could put them out of business, making them less competitive with out of state competition.  Others, including those with lodging and restaurant businesses admit, while it wouldn't destroy them, they just don't want to pay for a plan they don't believe in.

"I don't think that you can mandate a tax and throw all of the money out at a program that has yet to be defined," said Everett.

As for supporters of the bill, they say with funding being cut to Health and Welfare right now it's long past time to get the state's priorities in order.

"We see a huge lack in legislative input into the detox center that's been proposed in the Treasure Valley for the past 25 years," said Williams.

As for committee members, they're keeping quiet about which way they're leaning. They still have six or seven people whose testimony they'll have to sit through on Wednesday.

"And then after they've had their say, the committee will have their discussion around the table and hopefully have a vote and get on with it," said Rep. Dennis Lake, the committee's chairman.

If it passes, the bill will take Idaho from having some of the lowest beer and wine taxes in the country to some of the highest.

Overall it would cost moderate drinkers, who indulge only a few times a week, less than $10 extra a year.

Even if the bill passes committee, it will still have to go before the house and senate.