Alcohol Taxes May Fund Drug Program Proposal Raises Liquor Surcharge, Doubles Excise Tax On Wholesalers

Taxes on alcoholic beverages could go up in order to promote drug awareness programs in Idaho public schools.

One legislative proposal would raise the surcharge on liquor by 10 percent. The second calls for doubling the excise tax charged on beer and wine wholesalers.

“This is a tax increase,” said Rep. Maynard Miller, R-Moscow. “But a very modest one.” The beer and wine tax has not been raised since 1961, Miller said.

The money raised by both plans would go toward the promotion of anti-drug campaigns.

Studies show that between 80 percent and 90 percent of adults in prison have a substance abuse problem “that was a contributing factor in their being incarcerated,” said Rep. Tom Trail, sponsor of the first bill. “The majority of these inmates developed drug problems as teenagers.”

Trail, a Moscow Republican, said Idaho spends more than $20 million a year on juvenile offenders.

Programs need to be introduced that will reduce the growing cost of institutionalizing juvenile offenders and that will produce productive citizens, said Trail.

Studies show that drug awareness programs that combine efforts of families, law enforcement agencies, teachers, community and students are effective in keeping children away from drugs.

The two proposed taxes would raise an estimated $16.1 million.

The bills come in response to an unexpected split in the cigarette tax.

The tax, originally proposed to fund school substance-abuse prevention programs, has been split between the anti-drug programs and the Juvenile Corrections Department.

The schools, assuming that they would receive the full $7 million, instituted the drug awareness programs two years ago. Now, because they have to split the money with the Juvenile Corrections, schools have to make cut-backs.

Either of the two bills would prevent that. Trail’s bill would split the estimated $10 million it makes between the school programs and Juvenile Corrections.

The House Revenue and Taxation Committee voted Tuesday to introduce both bills.

, DataTimes