Its time to allow micro-breweries in SD to distribute their own beer, and, time to raise the alcohol tax

I know what you are thinking, a few contradictions there, but not really. I have often believed a tax hike in alcohol would actually help the bar business and give property tax payers a little relief from paying for criminals.

First the distribution issue. Distributors are clearly fighting this because of greed. But they have their excuses;

Distributors, meanwhile, said allowing craft breweries to work as producer, distributor and retailer in some capacity could create problems for the state in collecting tax revenue and for consumers in ensuring their beer meets quality standards.

Breweries would still be paying taxes and as for the quality issue, that is silly. Distributors ARE NOT testing the quality of the product, if they were Coors Light would no longer be available 🙂 This is clearly a way for distributors to reap a commission for basically doing nothing but acting like a keg taxi. Distributors would still be in the picture anyway for mass distribution. All brewers are asking is to brew more beer and sell it from their locations.

As for increasing the alcohol tax, I agree 100% with Minnehaha County Commissioner Jeff Barth that it is silly that property tax payers are footing the bill for crimes related to alcohol. I think if alcohol taxes increase, liquor stores and bars will charge more, which in turn could mean bigger profits and less consumption, which means less crime. MPR has a great story about this.

The Centers for Disease Control and Prevention estimates that the cost of excessive alcohol use is $2.05 per drink — costs that create financial burdens for federal, state and local governments.

“Currently, federal and state taxes do not even come close to covering those costs,” said Dr. Timothy Naimi, author of a recent article study on state alcohol excise taxes. “Public health is a strong rationale for alcohol taxation. … If we don’t recover the costs related to alcohol sales, then it amounts to a subsidy for people who drink, and who drink excessively.”

I don’t think the habits of casual drinkers would change with a tax increase, but I do think it would help to curb reckless drinking.



3 comments ↓

#1 scott on 01.13.18 at 5:14 pm

arch beal and his former employee jack kolbeck will work to kill this for sure.

#2 "Very Stable Genius" on 01.13.18 at 10:13 pm

Yep, the “Senator from Budweiser” won’t like this bill – especially in its current draft foam….. form…

#3 Warren Phear on 01.14.18 at 3:59 pm

Kolbeck the former? Still is, or not?

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