Md. Senate Approves Alcohol Tax Increase

ANNAPOLIS, Md. (WJZ)—Get ready to dig deeper in your wallet the next time you have a drink. The Maryland State Senate approves a big hike in the liquor tax.

Adam May breaks down the numbers.

The new tax will generate around $80 million a year and makes Maryland one of the most expensive states in the region to enjoy an adult beverage.

At Quarry Wine and Spirits, off Greenspring near Pikesville, managers are bracing for a big change to wine, beer and liquor taxes that will impact stores and bars across the state.

"Oh, it will be a pain," said Michael Fishman, Quarry manager, "and set two different tax codes."

A bill that just cleared the Maryland Senate phases in a 3 percent sales tax increase, raising the rate up to 9 percent over the next three years.

Health care lobbyists pushed the plan.

"It took 40 years to increase the alcohol tax in Maryland—40 years in which we've been one of the lowest alcohol tax states in country," said Vincent DeMarco, Citizens' Health Initiative.  "Now, we can hold our heads high and say we're saving lives from alcohol abuse, reduce underage drinking and we're gonna use that money in a smart way."

Most of the money will go to the general fund with tens of millions allocated to health initiatives and education.

But it only benefits schools in Baltimore City and Prince George's County.

"This will be money back to Prince George's County so it's huge, considering the fact we're looking at transportation cuts, teacher layoffs, so this is an important part of getting money back to our county,"  said Rushern Baker, Prince George's County Executive .

Managers back at the Quarry worry customers will go somewhere else for big purchases.

"Delaware is only an hour away," said Michael Fishman, Quarry manager. "And for 9 percent, people will travel."

The House takes up the bill next week. It already has a lot of support.