Increase for state's alcohol tax seems unlikely

JEFFERSON CITY, Mo. -- Although their efforts haven't yielded much in the way of results, supporters of raising state excise taxes on alcoholic beverages are nothing if not persistent.

Even before the Missouri Legislature convened for the year in January, proponents of higher alcohol taxes began lobbying for their cause. Since the start of the legislative session, "fact sheets" outlining different arguments in favor of increased levies have been delivered to all 197 state lawmakers on a daily basis.

In a legislature dominated by Republicans who campaigned heavily on their opposition to virtually any tax increase, those arguments have failed to win large numbers of converts.

Missouri's excise taxes on alcohol are among the lowest in the nation and haven't been increased in 35 years.

Gerrit DenHartog, a spokesman for Missouri's Alcohol Impact Coalition, said the group is prepared to keep up the pressure for years if necessary and is confident of eventually prevailing.

"Our opponents will often admit that we make a darn good case," DenHartog said. "If you really believe in something, you don't give up."

A bill pending in the House of Representatives would quadruple Missouri's existing excise tax on beer to 24 cents a gallon, double the levy on hard liquor to $4 gallon and nearly double the tax on wine to 78 cents a gallon. Supporters say the increases would translate to about an additional 2 cents per drink.

The estimated $44 million a year in additional state revenue generated by the bill would be earmarked for the prevention and treatment of alcoholism and law enforcement efforts to combat drunken driving. Supporters contend Missouri is doing too little to deal with such problems.

The measure has been stuck in limbo, however, as House Speaker Rod Jetton, R-Marble Hill, hasn't assigned it to committee.

"I'll be honest, I'm not big on taxes," Jetton said. "I am concerned about and have major reservations about the bill."

Jetton said the chances are "probably slim" for House action on the bill this year.

State Rep. Bill Deeken, R-Jefferson City, said he is undaunted by the cool reception the speaker and other chamber leaders have given his bill. Although Deeken concedes the measure won't pass this year, he sees momentum for the idea building.

"Most of the people that are against it are on the Republican side because they are against taxes," Deeken said. "Other Republicans are saying they might be able to go for it because we need the money."

The ongoing struggle to balance the state's budget could ultimately be the factor that causes lawmakers to be more amenable to raising excise taxes, Deeken said.

Under the bill, Missouri voters would have the ultimate say on the matter during November 2006 elections. If approved, voters would have to renew the taxes every six years for them to remain in effect.

Last week, the coalition released a poll of 500 registered voters from throughout Missouri. According to the results, 66 percent of respondents said they "strongly" or "somewhat" support the proposal.

In addition to overcoming the anti-tax sentiment in the legislature, supporters of higher alcohol levies also face a potentially bigger obstacle in Anheuser Busch Cos. Inc. The St. Louis-based brewer is one of the state's largest companies and wields tremendous influence in the Missouri Capitol.

Anheuser Busch's opposition to higher taxes on beer is a major reason they haven't been raised since 1970.

According to the Federation of Tax Administrators, a national tax policy group, Missouri's existing 6 cent tax per gallon of beer is tied with Wisconsin for second lowest in the nation. Only Wyoming's 2 cent per gallon levy is less. Alaska leads the nation with a $1.07 tax per gallon.

While not dismissing the positive economic impact from the tens of thousands of Missouri jobs the manufacture, delivery and sale of alcoholic beverages provides, tax supporter DenHartog said the proposed increases wouldn't put those jobs at risk.

For example, Florida, which is also home to an Anheuser Busch brewery, has a 48 cent per gallon beer tax. However, DenHartog said per-capita consumption of alcohol is much higher in Florida than it is in Missouri.

"If beer has been good for Missouri, it will continue to be good," DenHartog said.

mpowers@semissourian.com

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