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Higher Beer Tax Dropped

May 23, 2005 - Ohio lawmakers have dropped a proposal to the state's beer tax. The Cleveland Plain Dealer reports that budget planners will instead tack another 25 cents on a proposed 45-cent-per-pack increase in the cigarette tax.

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Ohio brewers and distributors previously delivered thousands of signatures packed in beer crates to the statehouse and then launched an expensive ad campaign to oppose the plan to double the 18 cents-per-gallon excise tax on beer and wine. They said the tax hike could cost 1,500 jobs in Ohio's beer manufacturing and distribution industry.

The debate on alcohol taxes continues in other states. Kentucky and and Washington state recently liquor taxes, while legislatures in Montana, Indiana and North Dakota failed to do the same with beer. Lawmakers in Texas are considering an increase in alcohol taxes to help pay for public schools.


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