Wednesday, March 18, 2009

First the Pole Tax, Now Alcoholic Beverage Tax Surcharge Proposed by NYS Assemblyman Felix Ortiz

First it was the pole tax. Now, New York Democrat Rep. Felix Ortiz is looking to increase the alcoholic beverages taxes in New York to fund programs that might get axed or reduced by Gov. Paterson.
A state lawmaker unveiled the proposal today for a bill that would tax all alcohol.

State Assemblyman Felix Ortiz says most of the funds generated through the new tax would be used for alcohol and drug abuse treatment and education programs around the state.

Under Governor David Paterson's proposed budget, the state is facing cuts to these types of programs.

Ortiz also claims making alcohol more expensive will help reduce underage drinking.
The text of the bill is here. He and the cosponsors would be looking to impose a $.25 per bottle surcharge on sales of beer, still wine, artificially carbonated sparkling wine, naturally sparkling wine, or liquor sold in the state of New York.

What about cans of beer sold? Why just bottles? That's probably an oversight that will be corrected in an amended version - just imagine the lost revenue if the breweries simply choose to sell by can instead of bottle.

Of course, this would add $1.50 to the cost of a six-pack of beer, including Saranac, Genesee, Blue Point, and Brooklyn Brewing Co (among others) all of which are brewed and distributed in the state (and for which the state already provides tax breaks at NYS Tax Law Sec. 424(6).

How many lost sales will occur because of this, along with the loss of revenues to those companies? Yet, Ortiz is looking to increase taxes in the teeth of a recession.

UPDATE:
Gothamist points out that Ortiz is a nanny-stater of the first order, who had proposed legislation (an unfunded mandate yet) that would require schools to provide the weights of students on report cards.

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