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Moves to raise wine tax run dry

Posted By Sun News On May 19, 2010 @ 7:35 pm In News | Comments Disabled

Two campaigns to raise fees or taxes on wine are effectively dead, according to the Wine Institute.
AB 1694, introduced by Jim Beall, (D-San Jose), would have imposed a 640% fee on wine. Proponents said the measure would raise $700+ million annually to help cover California’s annual alcohol-related trauma care, hospitalization, treatment, prevention, and criminal justice costs.

Although that bill is stalled, public employee unions have begun a campaign to urge the legislature to consider a 1280% fee/tax on wine to help balance the state budget, according to an institute report.

A $5.11 tax on every 750-ml. bottle of wine was proposed in a ballot initiative, the Josie and Kent Whitney Ballot Proposal. That movement is called dormant because a professional firm was not retained to gather signatures, making certification for the ballot extremely unlikely.

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