Massachusetts Repeals Tax on Alcohol!
Starting tomorrow, alcohol you buy in stores will no longer have a pesky 6.25% sales tax! This repeal, overturned by a ballot measure in November of 2010, means consumers no longer have to drive to New Hampshire to avoid the extra taxation. Anthony said "I am excited to pay slightly less for my alcohol in the future." When buying alcohol WITH sales tax, you are really being taxed twice. Distributors and sellers have to pay what is called an excise tax; meaning that the producer or seller who pays the tax to the government is expected to try to recover the tax by raising the price paid by the buyer. This excise tax is calculated by volume, which means that the tax is equal across all libations, regardless of price. The sales tax penalizes customers who drink more expensive wine, ie: the tax on a $40 bottle of wine is more than on two 1.5L jugs of vodka.
For a quick overview about this tax, we turn to fellow Massachusetts wine writer and all around great guy, Robert Dwyer. This is a quote from his highly informative article on the measure:
"Massachusetts hasn’t had a sales tax on alcohol since prohibition. Amidst an economic downturn in 2009, the state legislature decided to raise the sales tax rate from 5% to 6.25% and make alcoholic beverages subject to sales tax for the first time. Massachusetts retailers, especially those near the borders, say their business has suffered as a result. If we need the revenue from sales tax on alcohol it would make more sense to raise the excise tax rather than implement a sales tax!"To celebrate the repeal, Maureen as well as several liquor store owners and some of the ladies of LUPEC gathered with a boozy version of the Boston Tea Party by pouring water from wine bottles into the harbor.We wouldn't want to ACTUALLY pour any wine into the harbor, we hear fish aren't big imbibers. The Second Glass staff also made sure to bring our comically large bottle of champagne, for added effect. All in all, a lighthearted event to celebrate no sales tax on alcohol. There were some protesters, but luckily they were peaceful, or this could have easily turned into a Wine Riot!




