2011 April Archive at Barley and Hops Restaurant

Dear friends of Barley And Hops, as you may have heard, the MD Legislature is planning on passing an Additional Sales Tax on Alcoholic Beverages. This tax will be a total of 9% when finally phased in. It is not bad enough they plan to give over 6% to the Transportation Fund (so they can rob it again) the majority of this tax increase is going to Baltimore City and Prince Georges County Schools since they could not balance their budget. The Legislature is going to take your hard earn monies and give it to them. 22 of 24 Maryland Jurisdiction seem to be able to balance theirs without this kind of bribery for votes.

SO I encourage you to write all the delegate listed below and encourage to VOTE NO on this SALES TAX BILL ON ALCOHOL>

Thank you for your support.

Dear Delegate, I am writing you today to request that you vote NO on Sales Tax on Alcoholic Beverages. As a small retailer in a border county this type of legislation would be devastating to my business. Just reviewing the Fiscal Report by the Legislative Services shows many reasons why this would be bad legislation to the WHOLE State of Maryland. The following are my reasons.

Fiscal and Policy Note

General Funds Revenues Increase – according to the Fiscal & Policy Note Report it is stating that there will be a 100% increase in revenues from FY2012 to 2013 which would require the alcohol industry to also increase 100% in revenue in an industry that has seen flat or even decrease in sales over the last several years. Also they also show increases of 46.0% in 2014, again one must remember that this industry has been flat and even in the report it states that to expect a decrease of 8% in sales.
The Fiscal Report repeatedly states that “the actual amount of sales and use tax revenue attributable to the retail sale of alcoholic beverages is not known…” So all projection are being done without solid information, just assumptions.
It reports that the state expenditure for the Comptroller office will be in excess of $187,000 to make programming changes, what it does not state is the expense to the 11,000 plus retailers that will have to have their Point of Sales systems (cash register) reprogram at an average cost of $2,500 per location or the thousands of retailer that will have to incurred the cost of a new Point of Sale System because their current system is not capable of processing multiple tax rates.
As the Fiscal Report states: “Small Business Effect: … MEANINGFUL” “The sales tax increase on alcoholic beverages may result in a DECLINE in sales for ALL retailers and Wholesalers of alcoholic beverages.” (But to achieve the revenues needed it will take an 100% increase in sales) “those businesses located nears the State’s borders” (19 of 24 counties border other states including DC)” may be MORE adversely affected as customers could cross the border into other jurisdiction to purchase alcoholic beverages.”
The Fiscal Reports states all surrounding states with the exception of DC, DO NOT have a separate sales tax for alcoholic beverages and again net results will be more cross border sales which results in REAL lost of revenue to the State. PLEASE REMEMBER the Cigarettes tax and the 37 million dollar lost that Maryland experienced.
This will be a 19.0% increase in the sales tax for a pint of beer and a 50.0% increase in the sales tax on a liter of sprits.
This Sales Tax has been earmarked for many programs to include the Transportation Trust Fund (TTF). Well if all these programs including the TTF are all Marylanders challenges then all Marylanders should be charged not just the hospitality industry, which will be hardest hit by such a regressive tax.

Also it has been said that if this bill passes, the Governor will sign a supplemental budget to provide a major portion of this revenue source to Prince Georges and Baltimore City Schools. I ask you one question; how is that fair to the 22 other jurisdictions through out the state? Back in your District your School Boards and County Commissioners have worked hard and made major cuts to balance their budget, but now you are being asked to provide Taxpayer monies from your district to balance other District problems. SO again I say VOTE NO when this comes back to you.

Gary

Folks here is the list of Delegates on Appropriations and Ways and Means who will hear this.

PLEASE email asking them to vote no and use the talking points above or just use the whole thing but please write them.

Susan.Aumann@house.state.md.us

Gail.Bates@house.state.md.us

Wendell.Beitzel@house.state.md.us

John.Bohanan@house.state.md.us

Galen.Clagett@house.state.md.us

Steven.DeBoy@house.state.md.us

Adelaide.Eckardt@house.state.md.us

Tawanna.Gaines@house.state.md.us

Melony.Griffith@house.state.md.us