A hard drink to swallow
State liquor industry may see tax hike
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.”