Liquor tax boost proposed to pay public safety costs

04/21/2005

Associated Press
April 21, 2005

A state senator today proposed raising taxes on liquor, wine and beer to pay for public safety initiatives, including more supervision of sex offenders and other released prisoners.

DFL Sen. Jane Ranum of Minneapolis, who heads the Senate Public Safety Budget Division, said her plan would cost drinkers about a penny per glass more and would raise $24 million. She wants to earmark the money for probation, drug treatment programs and crime victim services.

“There’s a strong case that this is the ultimate user fee,’’ Ranum said at a news conference. “Alcohol is tied to so much crime.’’ Most criminals in the state’s prisons have substance abuse problems, and the use of alcohol is involved in a majority of crimes, she said.

The proposal would raise wholesale alcohol taxes, which are usually passed onto consumers. Drinkers also pay state sales tax of 6.5 percent on alcoholic beverages plus a 2.5 percent liquor tax, and some are subject to additional local sales taxes.

Ranum said the higher wholesale liquor tax will be part of a public safety bill her committee sends to two powerful Senate committees on taxes and finance. Its chances are uncertain; Senate Majority Leader Dean Johnson said the increase isn’t part of the Senate Democrat platform and Ranum will have to persuade a majority of committee members to back it.