A bill pending in the Delaware Legislature would increase the bev/al tax on beer by 2¢ per 12 ounce can. The rate for wine increases by approximately 3 cents per 5 ounce serving. The rate for spirits containing more than 25% ethyl alcohol by volume increases by 15 cents per 750 ml bottle.
It’s a terrible idea, Jay Hibbard, Distilled Spirits Council vp, told the Delaware House Revenue and Finance Committee.
It would cost retailers over $14 million in lost sales, Hibbard said, citing a DIS economic study. The proposed legislation would increase the tax on spirits over 25 percent ABV from $3.75 to $4.50 per gallon, on spirits 25 percent ABV or less from $2.50 to $3.00 per gallon.
“Delaware consumers already pay more than their fair share for distilled spirits,” said Distilled Spirits Council Vice President Jay Hibbard. “By dramatically increasing taxation on alcohol, the state of Delaware will endanger hospitality jobs, limit sales and ultimately hurt responsible consumers.”
“Responsible consumption of distilled spirits, wine or beer is a socially acceptable part of a normal, healthy, adult lifestyle. Imposing new taxes on responsible consumers who help support hospitality businesses across the state is not good public policy,” Hibbard concluded.