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Spokane, Washington  Est. May 19, 1883

Proposed Law Could Fund Treatment Of Alcoholism Beer And Wine Taxes Could Go Up Sharply

Associated Press

A proposed law would increase state spending on alcoholism treatment dramatically by raising Idaho’s beer and wine taxes to among the highest in the nation.

The proposal, by state Sen. Hal Bunderson of Meridian, calls for a sweeping rewrite of state alcohol policies. It would allow wineries and breweries to sell directly to retailers and change how the state handles liquor licenses.

Phased in over three years, money generated from the proposal would go to alcoholism-treatment agencies.

Drinkers, buying everything from cabernet sauvignon wine to the cheapest of beers, would see prices rise. Beer taxes would go from 1.4 cents a 12-ounce can to 7.5 cents. Wine taxes would go from 9 cents to 28 cents a bottle.

That would bring Idaho’s beer taxes to the third-highest in the nation after Alabama and Hawaii, the Beer Institute in Washington, D.C. said. Wine taxes would be the seventh highest, industry consultant Steve Barsby said.

Gov. Phil Batt discussed higher alcohol taxes in his budget address last week. Batt said he is willing to increase so-called sin taxes if the Legislature can state a good case for doing so.

State officials estimate 80 percent of the state’s 4,000 prisoners, who each cost taxpayers $17,000 a year, have substance abuse problems.

Bunderson’s proposal would add millions to what the state can now dedicate to private alcoholism treatment programs.