Session: State Capitol, Room 408 Juneau, AK 99801-1182 Phone: (907) 465-3783 Fax: (907) 465-2293 Subscribe to Newsletter District 14 and L & C Committee Info Interim: 716 W 4th Avenue, Suite 650 Anchorage, AK 99501-2133 Phone: (907) 269-0174 Fax: (907) 269-0177

Sponsor Statement for HB 225
Alcoholic Beverage Tax

An Act relating to municipal taxation of alcoholic beverages and increasing the alcoholic beverage tax rates.

I have introduced HB 225 as a way to help offset the Immense cost to the state related alcohol use and abuse. The current state excise tax on alcohol is between 3 to 4 cents per drink on beer, wine or distilled spirits, a rate that has not been adjusted in 19 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.

Those who oppose HB 225 argue that it would place Alaska as #1 in the nation for the highest state excise tax. While this is true, it is important to look at the other statistics that Alaska currently holds as leader:

• Alaska has the highest alcohol related death rate - 11.2% compared to 5% nationally
• Alaska has the highest incidence of Fetal Alcohol Syndrome (FAS) in the nation, 4 times the national average
• Alaska has the 2nd highest per capita alcohol consumption in the U.S.
• In Alaska, alcohol is implicated in 83% of child abuse investigations, 63% of sexual assaults and 60% of domestic violence reports
• Alaska Advisory Board on Alcoholism and Drug Abuse study indicates that the negative impacts associated with alcohol abuse in Alaska cost more than $250 million per year and a more recent study by the McDowell Group found the costs associated with alcohol abuse to be closer to $450 million per year
• Rural Alaska alcohol-related deaths are 7 times the national average
• The prevalence of alcohol dependence and alcohol abuse is nearly 14% of Alaska's population, compared to 7% nationally

Another important factor to consider is sales tax and other additional alcohol taxes that other states assess on alcohol. While many states may have a lower excise tax, when their sales and other alcohol taxes are included in the amount per drink, their cumulative tax effect far outweighs Alaska's excise tax. Alaska's effective alcohol tax rate would be less then the median among states on a taxes-per-drink basis even with the increase proposed in HB 225 and an additional 3% sales tax.

This legislation is an important part of the effort 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. I urge your support of HB 225.

# # #

Attachments:

• Discus This Topic
  
• Print Friendly Version
  Requires Adobe Acrobat Reader - 1 page(s) - 18K

| Rep. Murkowski's Page |

| Top | Home | Site Search | Breaking News | Legislators | Bills |
| Committees | E-Newsletter | Surveys | Research | Help |

The Official Web Site of the House and Senate Legislative Majorities
for the 22nd Alaska State Legislature
To Report Technical Problems or Contact Webmasters