Mar 3, 2010 7:27 pm US/Eastern
Suzanne Collins
A trip to the liquor store could be more expensive if a proposal to increase the alcohol tax passes in Annapolis.
Supporters tell Suzanne Collins the money could be used for the disabled and those without health insurance.
A crowd in Annapolis rallied Wednesday to increase the alcohol tax by about a dime a drink. Even the Montgomery County executive has endorsed the plan as a way to fund certain health-related programs.
"A little dime, you can't even buy a telephone call today," said Ike Leggett, Montgomery County Executive. "But this dime can go a very, very long way in protecting people throughout this great state."
"All of us suffer when there are so many people without health insurance, without drug treatment, because they have run up huge hospital bills. We all have to pay for it," said Vinnie DeMarco,Maryland Citizens' Health Initiative.
The proposed increase would add about 60 cents to the cost of a six-pack of beer or a bottle of wine. According to wholesalers and liquor store owners, that cost would be passed on to consumers.
Liquor store owners are opposed to the hike. The steepest hit would be on beer. A half-gallon of liquor would increase by $5.
"A $10 bottle is going to have a $10 tax, a $50 bottle is going to have a $10 tax, so it's going to really impact the lower cost items we sell," said Chuck Ferrar, liquor store owner.
Ferrar, the owner of Bay Ridge Wine and Spirits, says right now one-third of the state's liquor is sold to out-of-staters. They come to Maryland because the lower taxes make it cheaper.
"If we lose that advantage and lose one-third of our sales, we're going to lose a third of our employees," said Ferrar.
The Senate President, the House Speaker and the governor have all said they don't want any tax increases this year. A hearing about the tax hike is scheduled for next week.
