House Committee Turns Down A Tax Hike On Beer And Wine Supporters Of Measure Are Seeking To Put Money Into Treatment Programs

Idaho’s tax on beer hasn’t been increased since 1961. For wine, the tax has remained unchanged for the last 27 years.

And those taxes will remain the same, at least for the time being.

The House Revenue and Tax Committee rejected on Tuesday proposals for big increases in the taxes.

For Rep. Mark Stubbs, R-Twin Falls, it was more of the same. For the eight years he has served in the Legislature, Stubbs said, lawmakers have talked about increasing the beer-wine taxes to put more money into treatment programs. Nothing has been done.

“If we put this off another year, we have just delayed a decision on treatment programs by one year,” Stubbs said. “We just keep putting the problem off.”

Opponents to introducing the legislation sponsored by Sen. Hal Bunderson, R-Meridian, argued that the state plans a study later this year on possible expansion of substance abuse treatment programs.

Until that study is finished, it is premature to increase funding for programs that might arise, the opponents argue.

“We haven’t reached the bottom of the barrel to see what the needs are,” said Rep. Dave Bivens, R-Meridian.

Bunderson proposed doubling the state tax of 1.2 cents per can of beer this year, with similar increases for each of the next four years.

The wine tax, now 45 cents per gallon, would go to 74 cents in fiscal year 1999 with similar increases through 2003.

Bunderson estimated that would generate an extra $4.53 million for treatment programs next year, $9.2 million the second year, $14.02 million the third year, $18.97 million in fiscal 2002 and $24.08 million by the last of five years of increases.