Liquor tax increase

04/27/2005

Associated Press Report

A penny-per-drink increase in wholesale liquor, wine and beer taxes cleared a MN Senate hurdle Tuesday when an attempt to remove the provision from a spending bill failed in committee.

The Senate Finance Committee deadlocked 11-11 on the tax increase, which meant it stayed in the public safety spending bill. The package passed on a divided voice vote and now heads to the Senate Tax Committee, where the liquor tax faces an uncertain fate.

“I honestly was wondering if we were going to get it out of Finance,” said Sen. Jane Ranum, DFL-Minneapolis, author of the drink tax increase. “People understand there’s a real need.”

The liquor tax increase would raise $24 million a year to pay for more supervision of sex offenders and other offenders living in the community. Drug treatment programs and crime victim services would also get a share.

“This penny is going to pay so these folks right here can go out and check those people,” said Sen. Steve Murphy, DFL-Red Wing, referring to probation officials who spoke to the committee. “Let’s just get it done.”