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Murkowski Introduces Alcohol Tax in House
HB 225 Seeks Revenue to Offset State’s Costs for Alcohol Abuse

(JUNEAU) - Rep. Lisa Murkowski introduced legislation in the House Friday to increase the state’s excise tax on alcoholic beverages, saying the measure is a way to help offset the state’s alcohol-related expenses.

“Right now the terrible expenses associated with alcohol in Alaska are through the roof, and what we collect in an excise tax doesn’t even put a dent in the damage that alcohol does in this state,” said Murkowski, who serves as chair of the House Labor and Commerce Committee. “It is incredible to me that we haven’t increased the alcohol tax since 1983.”

Current state law collects only about 3 to 4 cents tax per drink of beer, wine or distilled spirits, a rate that has not risen in 18 years. HB 225 would increase that rate by 10 cents per drink, increasing annual state alcohol tax revenue to approximately $34 million from the current $12.1 million. It would also allow municipalities in the state the option to levy an additional 10 cents per drink in new or increased alcohol taxes, and have the state collect and return the funds to them.

Murkowski pointed out that even at the higher rate, the state’s alcohol tax would come nowhere near compensating the state for the social, economic and personal costs that alcohol imposes on Alaska for police, courts, jails, hospitals, medical care, domestic violence and deaths resulting from alcohol abuse.

“Clearly, it would be very difficult to pass an alcohol tax to fully compensate Alaskans for the approximately $250 million that alcohol abuse costs us each year,” Murkowski said. “Instead, I view this more as a user fee: Those who drink should help bear the costs of their choices.”

Murkowski said her bill is an important part of the Republican Majority’s efforts to address the problem of alcohol and alcohol abuse in Alaska, and would help provide revenue needed for the expanded treatment, therapeutic courts, diversion programs and other initiatives now under consideration in the Legislature.

HB 225 has been referred to the House Labor and Commerce Committee and the House Finance Committee.

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Attachments:

• Sponsor Statement for SB 225
  
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 114 K

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