Sponsor Statement for HB 132

An Act relating to Municipal Taxation of Alcoholic Beverages

HB 132 removes the restrictions on municipalities related to the sales tax imposed on alcoholic beverages. Current statutes are interpreted to allow municipalities to impose only general sales tax amount on alcohol. This bill allows municipalities to impose a sales tax which may be equal to, lower, or higher than the general sales tax.

State laws are continually passed that have a direct financial impact on municipalities. Municipalities are required by state law to care for and protect public inebriates. Currently, the State does not provide sufficient funding for such activities. This is not a new tax, HB 132 merely allows municipalities to tax alcohol according to their local alcohol related costs.

This legislation will enable municipalities to address budgeting problems created through the consumption of alcoholic beverages. HB 132 will enable municipalities to address their local expenses. Such costly services include public safety, care for inebriates, and alcohol related social and health problems.