CALIFORNIA STATE BOARD OF EQUALIZATION (BOE)MAKES HISTORIC DECISION
Alcopops To Be Taxed As Distilled Spirits
SAN RAFAEL, CA (August 14, 2007) --- The California State Board of
Equalization (BOE), under the strong leadership of State Controller John
Chiang, made history today when they set in motion a rulemaking procedure
to tax alcopops as distilled spirits, instead of the current "beer"
classification. The decision was immediately applauded by alcohol activists
and youth from the California Youth and Alcopops Coalition, the group that
initiated the drive with a petition to the BOE last fall.
“Flavored Malt beverages should be taxes as distilled spirits because they
fall under the category of distilled spirits, as written in California
law,” stated Chiang. “While today’s vote is about fair taxation,” he added,
“taxing flavored malt beverages as liquor will also help reduce their
popularity with young people by simply pricing the product out of their
reach.”
“This is an enlightened step forward in controlling underage consumption of
alcohol,” said Bruce Lee Livingston, MPP, Executive Director of Marin
Institute. “For generations, Big Alcohol has evaded proper taxation on
these products. Now, the state will benefit and the health and well-being
of our youth will be improved.”
A recent Marin Institute report detailed the true costs of the consumption
of alcopops by underage youth in California. The report concluded that
alcopops cost California $1.25 billion, 60 lives, and 50,000 incidents of
harm. With the new tax in place, the lives of 21 youth will be saved, as
well as $437 million in societal costs. The tax is also expected to reduce
underage alcopop consumption in the state by 35 percent.
“Public policy trumped corporate-influenced politics today,” said Michele
Simon, Director of Research and Policy at Marin Institute. “It’s a great
victory not just for the people and state of California but for other
states that are taking a keen interest in our process because they desire
similar outcomes. If we can do it, so can they,” she added.
In addition to Controller Chiang’s “yes” vote, board members Judy Chu and
Betty Yee also voted for the change. Members Bill Leonard and Michele
Steele voted no. The proposed tax could increase the average price of
alcopops by an estimated 25% and generate over $40 million for the state
treasury. In addition, the funds could be used for alcohol prevention
programs and emergency medical center expenses.
Listen live to Board Hearing
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