Alcohol Sales Tax Lifted in Mass.

Liquor store owners relieved, predict more residents will purchase alcohol locally rather than in tax-free (and bordering) New Hampshire.

January 04, 2011

BOSTON - The New Year ushered in less expensive times for consumption in Massachusetts, with a voter-mandated repeal of the state sales tax on alcohol ?" previously 6.25 percent ?" taking effect, NECN reports.

"It's truly a benefit that the customers appreciate," said Paul Fagan of Macy's, a Boston liquor store, adding that when the tax was implemented in 2009, his customers began patronizing tax-free New Hampshire to stock up on booze.

"They'll combine and send someone up and say, 'get me this and get me that,'" he said. "Come back with a few hundred dollars worth."

Now, he expects Bostonians to remain home when purchasing alcohol.

Not everyone is happy with the repeal, though. Sen. Steven Tolman said that nearly $100 million a year in revenue will be lost, money that was earmarked for alcohol treatment programs.

"I really think, if the public knew that they'd be inclined to say, 'that's an okay tax,' because they knew it was being well spent," he said. "When we have a good recovery program, it saves us in social costs ?" not in the millions, but in the billions ?" and that's no lie. Additionally, when we have the right programs, we can make a difference in saving lives."

NECN was careful to point out that Massachusetts alcohol is far from tax free, with 40-percent of the cost attributed to state and federal excise taxes. The only tax missing now is sales tax.

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