Maryland Passes Alcohol Tax Hike

The sales tax on alcohol will bump up from 6 percent to 9 percent starting July 1.

April 13, 2011

ANNAPOLIS, Md. - The Maryland General Assembly voted to raise the sales tax on alcohol 3 percent, to 9 percent, beginning July 1, the Washington Post reports.

Led by Democrats, both chambers managed to approve the alcohol tax hike that will generate an estimated $85 million annually. The tax increase would fund school construction and operation, as well as disabilities programs.

Republicans objected to the rushed nature of the two bills necessary to up the tax on alcohol. "Tyranny rises again, doesn??t it?" said Del. Donald Dwyer, a Republican lawmaker during the debate. "Once again, we??ve been stuffed. We??re not honoring democracy."

Lobbyist Vincent DeMarco had pushed for the tax increase last fall, wanting to raise the excise tax a dime per drink. "In these times of tough budget problems, other states should do what Maryland did, raise money in a way that saves lives," said DeMarco, who is also president of the Maryland Citizens?? Health Initiative. "This alcohol tax increase will save many lives and raise enough money to fund critical health care and community service needs."

DeMarco is pleased with the increase in the sales tax instead of the excise tax on alcohol because sales tax revenues rise with inflation and can bring in more funds.

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