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Public Policy
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Campaign for Addiction Prevention, Treatment, and Recovery
Committee
Against Repeal
of Tax on Alcohol
www.NoOn1MA.com
Alcohol tax raises $97m, sales dip 1%
Sales impact of new tax less than predicted
BY:
Bruce Mohl
July
15, 2010
New
sales taxes on alcoholic beverages raised $97 million over the
last 10 months while beer, wine, and spirit consumption fell by
1 percent.
The state raised its sales tax from 5 percent to 6.25 percent
last August and extended the tax to alcoholic beverages for the
first time, prompting concerns that higher prices would depress
alcohol sales or send Massachusetts consumers across the border
to New Hampshire to buy their booze.
Revenue Department officials, releasing numbers for the
just-completed fiscal year, said revenue gains from the new tax
on alcohol exceeded their expectations by $19 million while
sales of beverages dipped 1 percent. The sales, as measured by
excise tax revenues, were actually up 1 percent through the end
of January, Revenue Department officials said.
“We thought demand would go down much more than 1 percent,” said
Robert Bliss, a spokesman for the Revenue Department.
Question 1 on the November ballot would repeal the new sales tax
on alcoholic beverages. Republican gubernatorial candidate
Charles Baker, at a press availability today outside a Kappy’s
Liquors in Medford, called for the repeal of the alcohol sales
tax.
Overall, state tax revenues made a sharp uptick in June. The
state ended the fiscal year with $18.5 billion in tax revenues,
up $279 million, or 1.5 percent, from last year and $78 million
above the most recent revenue forecast in January.
Income tax collections for the year were off $474 million, or
4.5 percent, from a year ago while the higher and expanded sales
tax generated $739 million in new revenue for the state.
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