Idaho beer, wine tax hike clears initial hearing

Story

Summary

Measure, to more than triple the 15 cent per gallon beer tax to 52 cents and boost the 45 cent per gallon wine tax to $1.56, avoids being killed.

Story Published: Feb 17, 2009 at 2:05 PM PST

Story Updated: Feb 17, 2009 at 2:05 PM PST

BOISE (AP) - Proponents of boosting Idaho's beer and wine tax to fund substance abuse treatment won an initial victory in the Legislature when their bill was narrowly approved for further debate.

The measure, to more than triple the 15 cent per gallon beer tax to 52 cents and boost the 45 cent per gallon wine tax to $1.56, avoided being killed on a 10-8 vote.

Keith Allred, head of The Common Interest government reform group, says drinkers should shoulder more of the burden of alcohol abuse, since beer and wine taxes are unchanged since 1961 and 1971, respectively.

Retailers oppose the hike, arguing it could crimp business further in a dour economy.

Idaho's beer tax ranks 37th highest in the nation. The median is about 19 cents. If the hike passes, Idaho would be ninth.

Its wine tax is 34th highest, compared to a 69 cent median. If Allred's bill passes, Idaho would be seventh.