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Tuesday, August 14, 2007

Officials OK tax hike for sugary alcohol drinks

The decision, which affects "alcopops" such as Mike's Hard Lemonade, is a victory for a group of California teens.




By Nancy Vogel, Los Angeles Times Staff Writer
August 14, 2007

SACRAMENTO -- A group of California teenagers working to curb underage drinking scored a victory today when state officials voted to impose steep new taxes on sugary alcohol drinks such as Smirnoff Ice and Mike's Hard Lemonade.

The Board of Equalization decided to treat flavored malt beverages as distilled spirits rather than as beer, which will boost taxes on a six-pack of the drinks by nearly $2.

"The ruling will send a signal to youth that these drinks are hard liquor because they have costs similar to hard liquor," said board member Judy Chu of Monterey Park, one of the three Democrats to vote for the change.

The "alcopop" drinks mimic lemonade, cola, fruit punch and other flavors. They don't fit neatly into California's alcohol classifications of beer, wine and distilled spirits.

Before the tax change can take effect, the state must study the content of all flavored malt beverages sold in California, board staff members said. That could take a year.

The 3-2 vote came eight months after a group of teenagers from around the state petitioned the board for the higher taxes.
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