Tax Increase in Maryland

Legislators vote for 3% increase

The Maryland Senate voted 27-19 Wednesday to increase the state’s sales tax on alcohol from 6 percent to 9 percent over three years.
Eleven Republicans and eight Democrats voted against the bill. The measure now goes to the House of Delegates.

Analysts estimate the increase would raise about $29 million in the next fiscal year. It would raise $58 million in the following year and $85 million in the third year.

The American Beverage Institute, which represents more than 130 Maryland restaurants, ran full-page advertisements in two Maryland newspapers criticizing the raising the tax at a time when the hospitality industry is still struggling from a sluggish economy.