Question 1: An Act to Repeal the Sales Tax on Alcohol

Posted on 28. Jul, 2010 by ywwlawrence in Question 1

Scroll down to read the Attorney General’s official summary.

Our summary:

This proposed law would remove the Massachusetts sales tax on alcohol, starting on January 1, 2011.

PROS:

• The current tax on alcohol puts MA at a competitive disadvantage with New Hampshire, which does not have a sales tax

CONS:

• Revenue from tax on alcohol equals about $80 million annually
• The tax revenue has gone to substance abuse counseling, treatment, and education programs, which have subsequent benefits in the reduction of crime, health problems, violence, etc.

The Attorney General’s official summary:

This proposed law would remove the Massachusetts sales tax on alcoholic beverages and alcohol, where the sale of such beverages and alcohol or their importation into the state is already subject to a separate excise tax under state law.  The proposed law would take effect on January 1, 2011.