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Published on Friday, March 7, 2014

State budget could cut city liquor taxes again

The Senate passed their proposed supplemental budget last week, and the House then passed their own version earlier this week. For cities, the main difference between the two is how much liquor revenue you will receive in the next state fiscal year. The House proposes to distribute approximately $25 million in liquor taxes to cities and counties, the amount the Legislature agreed to in last year’s operating budget. The Senate seeks to cut local liquor taxes by an additional $6.7 million. The city portion of these cuts is nearly $5.4 million and would begin to take place in October, 2014. Although the Senate proposes to partially offset the liquor cuts with new marijuana revenue, this marijuana revenue is not guaranteed nor does it fully replace the $6.7 million in cuts.

AWC prefers the House proposal as it does not make further cuts to city liquor revenue and does not rely on marijuana revenue that may not be realized. We’ve developed a chart showing how much each city stands to lose in the Senate’s proposal. The chart is posted here. If you are concerned about this potential loss of revenue, please let your Senator know.

Categories: Liquor, State budget