ND House repeals champagne 'tax on bubbles,' bill now goes to governor

North Dakota wine drinkers pay less tax than those who favor the bubbly, but the difference may end soon.

BISMARCK, N.D. —
North Dakota wine drinkers pay less tax than those who favor the bubbly, but the difference may end soon.

The state House has decided to repeal what Rep. Lonny Winrich, D-Grand Forks, refers to as a "tax on bubbles." Representatives on Tuesday approved the change, 88-3, and the legislation now goes to Gov. John Hoeven.

Buyers of alcoholic beverages pay both a sales tax and an excise tax that generally rises with the drink's alcoholic content. However, the tax on sparkling wine is 26.4 cents per liter, while still wine with less than 17 percent alcohol is taxed at 13.2 cents. The difference dates to the 1930s.

The bill the House approved on Tuesday eliminates the gap, and taxes both types of wine at 13.2 cents per liter.

Winrich joked that he had conducted some "research in a local laboratory" — a Bismarck liquor store — in preparing his House floor speech.

"I found that one can buy a bottle of champagne for as little as $5, or one can pay as much as $150 for Dom Perignon," Winrich said. "In other words, this is an equal-opportunity tax cut."

The bill is SB2416.