Boston Herald

A hard drink to swallow

State liquor industry may see tax hike

- By DONNA GOODISON

An industry group is raising concerns about talk of booze tax hikes that could jack up the price of a drink for consumers — even as it welcomes a plan to ease state regulation­s governing the alcoholic beverage industry.

“I’m never for increasing taxes,” said Bob Luz, CEO of the Massachuse­tts Restaurant Associatio­n, though he added, “I don’t think that’s something that the governor and his team are looking to do necessaril­y. The price of food and beverages is already a challenge for me and you when we go out to dinner, and I don’t think folks are looking to pay more on that front.”

The Alcohol Task Force, formed in February by state Treasurer Deborah B. Goldberg, who oversees the Alcoholic Beverages Control Commission, yesterday released a final report with 37 recommenda­tions.

The task force recommende­d increasing excise taxes by as much as 50 percent, as well as hiking license fees, to fund 30 more ABCC investigat­ors and 15 staff members for better enforcemen­t of licensees. Distributo­rs pay excise taxes on alcohol bought from brewers and manufactur­ers for resale to restaurant­s, bars and liquor stores. The recommende­d per-gallon increases are from $0.11 to $0.16 for beer, $0.55 to $0.82 for wine and $4.05 to $6.07 for liquor to generate another $41.65 million in revenue per year.

Luz supports a proposed change that would allow bars and restaurant­s to accept out-of-state licenses as a form of identifica­tion.

“We’re the only state in the union that does not allow that,” he said. “We get students and travelers from 50 states as well as all over the world. The reality is if you go to (TD) Garden and order a beer, they will accept a passport from Finland, but they won’t accept a drivers license from Rhode Island..”

Rob Burns, president of the Massachuse­tts Brewers Guild, said his group’s initial read of the report “is very encouragin­g.” The task force recommende­d easing requiremen­ts that hinder brewers from terminatin­g agreements with distributo­rs unless they prove “good cause.”

“The task force agrees with us and notes the need for significan­t franchise law reform and recommends clearly defined parameters to govern the relationsh­ip between brewers and distributo­rs,” said Burns, co-founder of Night Shift Brewing in Everett.

The Massachuse­tts Food Associatio­n backs a change that would let cities and towns decide the number of liquor licenses issued to grocery stores and supermarke­ts in their communitie­s after 2020. The law currently limits chains to seven licenses, and that number will increase to nine in 2020.

“It’s good for our industry,” MFA vice president Brian Houghton said. “Convenienc­e is really driving it.”

 ??  ?? THAT BURNS: The state’s Alcohol Task Force issued a report yesterday recommendi­ng an increase in excise tax on booze by as much as 50 percent, as well as hiking license fees.
THAT BURNS: The state’s Alcohol Task Force issued a report yesterday recommendi­ng an increase in excise tax on booze by as much as 50 percent, as well as hiking license fees.

Newspapers in English

Newspapers from United States