Stop the Beverage Tax Increase!

Legislative Alert – Want to pay $4.50 more for a case of Heavy Seas?!  Maryland House Bill 832 would raise MD beer excise taxes about 12 fold, making MD among the highest alcohol beverage tax states in the country. To see the actual legislation click here.

The sponsors are passing this bill off as a harmless proposal that Marylanders pay a “dime a drink” – which certainly sounds reasonable enough.  But if you look a little deeper, the true impact could be to increase the cost of a case of beer at retail by about $4.50 per case – anywhere from a 15 to 25 % increase in cost to the consumer.

For my brewery alone this would raise our tax burden over $220,000.  Since there is no way we could absorb that kind of cost increase, we would have to pass that along – hence your increase in cost to consumer.  This would certainly negatively impact our sales, and then translate into JOB losses.  And don’t forget we are talking manufacturing jobs here  – the kind of jobs the economists are telling us we want to keep.  It would be difficult to effectively outsource local beer manufacturing jobs to India!

This proposed beer tax increase is of course in addition to the increase we have already gotten on MD unemployment insurance.  However, if we have to lay people off to deal with these tax issues, I guess that means we can put that extra unemployment tax money to good use. And none of this deals with the negative impact that would be faced by the hospitality industry and package stores.  Wow, I guess we can really put those extra unemployment dollars to good use.

Also, let’s not forget the inestimable benefit this tax increase will deliver to our good neighbors in Virginia, West Virginia, Delaware, Pennsylvania and DC.  Think of all the Marylanders who will flock to those states to buy beer, wine, and liquor – saving fairly large dollars and making sure that all that money goes out of state where it will do us all a world of good.  Kind of makes you feel giddy doesn’t it!

You know it occurs to me that with all of the positives noted above the state might actually net fewer tax dollars as a result of this proposed tax increase.

Seriously, whether you are a beer drinker or not, this kind of legislation is more about small business rather than beverage alcohol.  Those of us in this industry are an easy target – they call it a “sin tax” remember!  But just because we are an easy target doesn’t make it either right, good business, or even more importantly, good tax policy.  We are collectively just now beginning to emerge from one of the most difficult economic time periods in our history.  This is NOT the time to take this kind of action.  Let MD small business get back on its feet, and then let’s look at options for balancing the state budget correctly - with broad based initiatives rather than penalizing any one industry.

To communicate to your state Delegate that you oppose this bill you can…

1) Click here 

2) Enter your address and city and hit "Find Elected Officials"

3) The next screen will give you email links to both your State Senator and Delegates.

4) Send them an email today!  Please be respectful, but tell them what you think! 

5) Remember who sponsored this bill at the polls in November!

Hugh Sisson

Founder, Heavy Seas Beer