San Francisco Considers Fee On Alcoholic Beverages

Fee is projected to generate more than $16 million a year to treat alcohol abuse.

August 10, 2010

SAN FRANCISCO - San Francisco Supervisor John Avalos proposed last week adding a fee to alcohol sold in San Francisco, a move that he projected would generate more than $16 million a year to help fund city-funded public health costs associated with alcohol abuse, the San Francisco Chronicle reports. In response, beer, wine and spirits vendors said the fee would hurt alcohol sales.

The proposal would add nearly six cents for every ounce of alcohol sold, or roughly 3 cents for a bottle of beer, 4.5 cents for a glass of wine, and 3.5 cents for a mixed drink. It was met with mixed response at a City Hall hearing.

"The toll that alcohol has on the public health system is huge," said Dr. Michael Rokeach, president of the San Francisco Medical Society. "The idea that you could charge a very small amount per drink and fund programs that would help keep patients out of the emergency departments and better their lives is a no-brainer."

However, nightclub owner Guy Carson said the fee would be passed along to businesses at a time when profit margins are already stretched thin and customers are cutting back on consumption.

"It's just one more example of City Hall looking to make it hard to do business in San Francisco," he said.

San Francisco's chief economist, Ted Egan, said the fee would reduce consumption, costing up to 80 jobs per year in the private sector. However, he said the loss could perhaps be offset by a gain in city or city-contract jobs to provide more services.

The impetus for the fee comes as the city tries to reduce its $483 million deficit.

"It's not too much to ask that the people who provide the city with alcoholic drinks help cover (the city's) cost," Avalos said.

The city's Board of Supervisors Budget Committee delayed a vote on the proposal to later this week, with the city's full Board of Supervisors expected to review the issue next month. A spokesperson for Mayor Newsom said the mayor has concerns. "The mayor's not inclined to support the fee," said Newsom spokesman Tony Winnicker.
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