Booze tax would help fund public programs

BRAD SHANNON, THE OLYMPIAN

Originally published Saturday, March 9, 2002

OLYMPIA -- A new tax on hard liquor and fortified wine surfaced Friday in the House as a way to raise money for law enforcement and public health programs.

The money would go to counties such as Mason County, which lost more than 10 percent of their revenue when voters repealed the car excise tax three years ago. Small towns like Bucoda and Rainier in Thurston County would get smaller amounts of money to replace the taxes cut off by passage of Initiative 695.

But South Sound lawmakers who represent those areas were cautious or outright opposed.

"It's a new tax," objected Rep. Richard DeBolt, R-Chehalis, whose 20th district includes the three Thurston County towns that would receive aid.

Bucoda would get $32,671 a year, while Rainier would get $34,453 and Tenino $10,631.

"I'm just looking at it," said Democratic Rep. Kathy Haigh of Shelton, who said she received calls about the proposal Friday from Mason County constituents. Mason County could get more than $1.1 million to balance its books, and the town of McCleary would get $32,688.

The tax on spirits would increase by 2 percent on retail sales at liquor stores, and another 41-cents-per-liter tax would be tacked on for sales in state-run stores and in restaurants with liquor licenses.

That would mean a $2.41 increase on a liter bottle of booze. Fortified wine taxes would go up by 20 cents per liter.

The tax measure, which Grant has proposed as an amendment to House Bill 2950, has other provisions that would let counties raise their sales tax by 0.2 percent and impose a 1 percent utility tax.

Senate's turn

How the new tax proposals would fare in the Senate was not immediately clear, but Senate Republicans and some Democrats have voiced support for getting more aid to counties that have struggled after I-695's passage.

The Senate is expected to vote today on its budget proposal, which gives just $1.6 million in car-tax replacement money to counties, but none to cities.

The Olympian Copyright 2002

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