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How alcohol tax increase could impact restaurant industry
KOAT ^ | Mar 21, 2023

Posted on 03/21/2023 9:12:42 PM PDT by nickcarraway

"We just hope with a state that has more money than they ever had, they would consider not putting taxes on citizens at this point," Carol Wight said.

The highly anticipated $959 million tax package now awaits Gov. Michelle Lujan Grisham's signature. Supporters said House Bill 547 would provide more relief for working for New Mexican families, make the state's tax code more equitable and supply incentives to help move the state forward.

$959 Million Tax Proposal$959 million tax proposal progresses through roundhouse

While the bill is proposed to make the state's tax code more equitable— the tax reform also includes an alcohol tax increase. The alcohol tax increase would impose a one-cent per drink increase on beer and a nearly two-cent per drink increase on spirits. Supporters of the bill said revenue generated from the alcohol tax increase would go toward alcohol treatment programs.

New Mexico's Restaurant Association CEO, Carol Wight, says she's pleased lawmakers made a compromise, but believes the alcohol tax increase could cause more harm than good for the industry.

"This was a compromise. It was the lowest of compromises, so we do appreciate the work that the legislature did to bring this down. We don't think this is necessarily the end of them talking about tax increases, we just hope that with a state that has more money than they ever had— they would consider not putting taxes on the citizens at this point," Wight said. "Restaurants need everybody's help right now, they don't need additional taxes on anything. We're facing so many pressures right now—you know, supply chain shortages, obviously as everybody knows we can't seem to find labor out there and so we have to pay more for labor and course we're paying more for everything else."

"They are already paying more for everything they get in their restaurants, and now to have additional tax on something they've already been paying more for is kind of adding insult to injury," she added.

Downshift Brewing co-owner, Pete Kassetas said the alcohol tax hike won't harm his business — but wants lawmakers to make good on their promise.

"Okay, legislature, you've done this. You've done it during a surplus in budget, fine. But now make it work—that's all we ask," Kassetas said. "I followed the bill closely. I'm happy the original proposal did not go through, because I thought that would have hugely impacted the alcohol industry at close to $0.05 per drink. However, I'm keeping a close look at what that really means for the future. Will we actually be able to implement these programs that drive down some of these factors that are affecting our quality of life throughout New Mexico?"

"We know we have a high rate of DWIs and fatalities in substance abuse, but we also have a massive issue with homelessness and the lack of entities that address treatment for people with mental issues or alcohol or substance abuse. Let's get those in place," he said.

Lujan Grisham has until April 7 to sign House Bill 547 into law.


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: New Mexico
KEYWORDS: newmexico

1 posted on 03/21/2023 9:12:43 PM PDT by nickcarraway
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To: nickcarraway

Is there a new tax on weed? I doubt it.


2 posted on 03/21/2023 9:15:20 PM PDT by reg45 (Barack 0bama: Gone but not forgiven.)
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To: nickcarraway

People pay $10 for beers at a ballgame, they will pay the tax for booze at a restaurant.


3 posted on 03/21/2023 9:18:30 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: CedarDave

And the hits keep on coming...


4 posted on 03/21/2023 9:22:48 PM PDT by kiryandil (China Joe and Paycheck Hunter - the Chink in America's defenses)
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To: nickcarraway

A person could make a fortune if they filled a truck with booze from a low tax on booze and headed up north.

But that would be criminal, and that’s not me.


5 posted on 03/21/2023 11:10:20 PM PDT by dp0622 (Tried a coup, a fake tax story, tramp slander, Russia nonsense, impeachment and a virus. They lost.)
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To: dp0622

A pipeline of booze instead of a truck, like the Matt Bass Scheme.

https://theuntouchables.co/the-matt-bass-scheme/


6 posted on 03/21/2023 11:16:01 PM PDT by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: nickcarraway
...the bill is proposed to make the state's tax code more equitable...

Bull crap! Are they really saying that low income people drink less than high income people? This is a regressive tax and they know it. If your state has a tax surplus, why do you need more money now?

7 posted on 03/22/2023 3:07:53 AM PDT by econjack
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To: nickcarraway

......at restaurants I frequent in Central Texas, a crummy little tiny glass of gin and tonic will cost you $4.50. And, it’s really only about two swallows. A similarly sized “Call” drink (specifying a specific liquor) is $6.50.

These high prices caused me, a person who can afford to drink what he wants, to rebel. So, in recent years I have reduced drinking mixed drinks 80%. Accordingly, I doubt tax revenue goes UP when taxes are increased because more people will just reduce their drinking.


8 posted on 03/22/2023 3:43:35 AM PDT by Cen-Tejas
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To: nickcarraway

I’m hanging onto my shares of TAP, because an increase in alcohol taxes can be overcome by another bad Biden decision, causing folks to drink even more than before the tax increase.


9 posted on 03/22/2023 3:49:04 AM PDT by Dixie Yooper (Ephesians 6:11)
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To: nickcarraway

“...make the state’s tax code more equitable...”

Cool! Everyone will pay the same amount of tax. Or is that not today’s definition of equitable?

EC


10 posted on 03/22/2023 6:07:24 AM PDT by Ex-Con777
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To: Cen-Tejas

“These high prices caused me, a person who can afford to drink what he wants, to rebel. So, in recent years I have reduced drinking mixed drinks 80%. Accordingly, I doubt tax revenue goes UP when taxes are increased because more people will just reduce their drinking.”

$7 mixed drinks, $3.50 cokes. I end up with water only.


11 posted on 03/22/2023 6:11:54 AM PDT by TexasGator
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To: nickcarraway

They never see a tax they don’t like. Another way to discourage spending in a blue state.


12 posted on 03/22/2023 6:41:47 AM PDT by vetvetdoug
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To: nickcarraway

The Peoples Republic of Minnesota spends millions to stop smoking, has declared a jihad on all forms of vaping products, has a nearly 10% tax on retail alcohol sales and bans smoking and drinking in state parks, yet our leftist Legislature is now close to legalizing pot sales. Are there no similar health hazards from smoking pot?


13 posted on 03/22/2023 7:49:27 AM PDT by The Great RJ
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