In these days of declining revenues and increasing costs, local governments are looking for different avenues to pay for local services. House Bill provides a new option to do this, but only if approved by a majority vote of the local citizenship.

House Bill 92 amends the statutes to allow--NOT require--municipalities to impose a sales tax on alcoholic beverages regardless of whether there is a tax on other kinds of sales. The interpretation of current statutes is that only municipalities with a sales tax on other sales may impose a sales tax on alcohol and then only at the general sales tax rate. This legislation would allow municipalities to impose a sales tax that is equal to, lower than, or higher than, the general sales tax rate.

Local voters would have to decide whether to impose a sales tax on alcohol. As with other municipal taxes, the sales tax on alcoholic beverages and its rate cannot be imposed without approval of the voters in the municipality.

Laws are continually passed that have a direct financial impact on municipalities. For example, state and federal laws require municipalities to care for and protect public inebriates; however, sufficient funding is not always provided for these activities. Such costly services can include public safety, care for inebriates, and alcohol-related social and health problems. This legislation enables municipalities to address these budgeting problems along with others. It provides them with a new option.