MA to tax alcohol et al

Just moving the topic of conversation out of the Commerce Corner and into a new discussion thread.

Personal view from just outside of Boston:
It will barely effect our sales.

However, along the border with New Hampshire I expect to see a (roughly) 10% closure rate on alcohol purveyors with a significant drop-off in sales of “money making” brands in those that survive. The state will garner a windfall of tax revenue while a small number of people will be forced into unemployment. I suppose this makes some sense even if I don’t agree with it from a personal perspective.

I also suspect the recent clampdown on inter-state shipping by the State of MA is indicative of their expectation of increased incoming shipments. This should prove extra annoying and stupid. [suicide.gif]

MA has been tough on incoming shipments for quite some time. Several of the retailers here won’t ship to MA. Maybe you can put together a Boston Alcohol Party and throw your legislators in the bay.

Wait, let me send you some of our legislators to weigh yours down.

Just ship the wine inside of gun boxes. Gets through every time.

Never understood why is MA so tax friendly, and wine unfriendly? It sure is “green” to have MA residents drive to neighboring states to pickup their wine shipments . . . [rolleyes.gif]

Meet some of our august Mass. legislators and you will never again make the mistake of looking for logic in their decisions…

While I am fervently against restrictions on shipping, why is it a big deal that they want to tax in state sales? As far as I know, most states do the same. It seems silly that the alcohol industry has been exempt all this time.

To be clear, I don’t support any vice taxes, but I think alcohol should be treated as any other consumer product.

Bruce, not sure anyone would argue with you. It’s just that it never was taxed before here. I don’t want to pay it, but with the economic issues, I said a while ago they should tax booze here to raise money

Now if we can cut some of the crap out of the budget, I’ll feel better about where the tax revenue will go!


BINGO!

What I don’t understand is why NH gets to tax interstate shipments when it doesn’t tax in-state sales. Doesn’t that violate the commerce clause in the same way that prohibiting interstate shipments but allowing in-state shipments does?

– Matt

I take no credit for this post now that Maoderator Zach took a dump on it. Way to hit “edit” Bro…
[1928_middle_finger.gif]
LOL!

Hahah! Good seeing ya today! Drinking that Palazzo on Friday, I’ll let you know what I think!

I don’t think the NH 8% is a tax. It’s a fee the direct shipper has to pay. Not sure if that effects the legality of it but it could be some loop hole or it just hasn’t been challenged yet.

Andy

I think your on the right track with that. I’ve had good natured debates with folks who work in the NH State liquor stores over the 8%. When they start spout’n about having “no sales tax” I throw the 8% liquor tax at them. The reply is that it’s not a “tax” but “fee” for shipping into the state. To that I reply 'BULLSH*T", it’s a tax or else your committimg some sort of violation of federal IC laws. They usually shut up after that.

On the NH thing…

NH is a state-run store. There is no actual “sales tax” on purchases but the ‘tax’ the state puts on alcohol is built in to their price. The 8% retailers and wineries have to pay is because the products they are shipping direct to consumers have not gone through their state system, so they are collecting on those goods. It makes sense to me…

On the MA thing, yes I agree too it’s about time for sales tax on alcohol, but the shipping issue makes no sense. They should do what NH does and just have shippers register for a fee and then collect sales tax on any orders shipped to MA. A few more forms, some regulation, but in the end they will gain more than lose as long as the registration fees aren’t prohibitive.

But they will lose because all of those “donations” the polls get from the MA Liquor industry could dry up.

In MA, my understanding was that ther was a state alcohol tax that hit the wholesalers and was just passed on to the consumer imbedded in the pricing, but right now, if a botlle is tagged $20, consumer pays $20, and the taxing was paid by one of the three tiers before purchase on the wholesale price.

Anyways, looks like our legislature is raising taxes and fees this past week with voice votes and no accountability on all sorts of things.

Awesome!!!

Where do you get them?

I just read today in the local paper that there is already in MA $2.90 tax on a $10 bottle between existing Fed and State taxes. Also $8+ on a case of beer. So obviously we need to be taxed more.

Sean,

You’re spending too much time on the little picture. The view from the statehouse is “everyone else is doing it, why not us?” and when the answer to that question is another 28mil for the state coffers, why say no?

Fair warning!

The new alcohol sales tax commences on August 1, 2009