Maryland drinkers could be paying a little more to hit the bottle, as elected officials push for an extra 10-cent tax per drink.
Montgomery County Executive Ike Leggett is scheduled to speak Wednesday at a rally in Annapolis in support of legislation that would raise taxes on alcohol beverages for wholesalers that supporters said would translate to a dime per drink.
He and Council President Nancy Floreen, D-at large, sent a letter to state lawmakers saying additional tax revenue was needed to preserve “critical needs.” The proposed legislation would use $214 million generated by the tax increase to fund health and addiction services, supporters say.
Maryland has one of the lowest alcohol taxes in the country, and the rates haven’t risen in 38 years. Previous attempts to raise the tax have failed, as business owners have complained that raising taxes would hurt sales.
Only Montgomery County-owned stores sell liquor in the county, and the sale of beer and wine in grocery stores is limited.
The state is facing a $2 billion budget gap and the county is facing a $760 million deficit that could grow worse if state lawmakers reduce local aid.
Leggett and Floreen said that they “absolutely understand the concerns of residents and businesses that have been hit hard by the recession and are opposed to raising taxes.”
“But we have also not been shy or reluctant, despite the politics involved, to voice our support for targeted tax increases that have far-reaching health or environmental benefits and help to raise revenue for critical needs,” the pair wrote, noting their past support for tax increases on gasoline and cigarettes.
They also noted a recent study by professors at Johns Hopkins University that found an increase would reduce alcohol abuse, saving lives and hundreds of millions of dollars.
A poll released by Opinion Works Tuesday showed that 72 percent of Maryland residents favored an increase in the alcohol tax.
