Moves to raise wine tax run dry

May 20, 2010

California - Two campaigns to raise fees or taxes on wine are effectively dead, according to the Wine Institute. AB 1694, introduced by Jim Beall, (D-San Jose), would have imposed a 640% fee on wine. Proponents said the measure would raise $700+ million annually to help cover California’s annual alcohol-related trauma care, hospitalization, treatment, prevention, and criminal justice costs.Although that bill is stalled, public employee unions have begun a campaign to urge the legislature to consider a 1280% fee/tax on wine to help balance the state budget, according to an institute report.

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