Categorized | Arkansas News Bureau, News

Proposed alcohol tax for treatment programs rejected

By Rob Moritz
Arkansas News Bureau

LITTLE ROCK — A proposed initiated act that would raise the excise tax on all alcoholic beverages sold in the state to pay for treatment, prevention and law enforcement programs was rejected by the state attorney general’s office today because of ambiguities.

The proposal filed by Teresa Belew, former executive director of Mothers Against Drunk Driving’s Arkansas chapter and now a volunteer with the organization, would levy a 10 cent tax on every “standard drink” of alcohol sold in the state.

The proposal also would create the Arkansas Substance Abuse Programs Fund.

Belew said today the tax would generate about $60 million annually, based on information provided by the state Department of Finance and Administration, and would go to prevention programs, treatment programs and law enforcement interdiction programs.

Belew pointed to a recent poll released by the state Chapter of the Closing Addiction Treatment Gap program that found nearly 70 percent of Arkansas voters would support raising taxes on beer, wine and liquor to provide more drug and alcohol treatment programs.

The survey “confirmed what I’ve seen and heard, and that is we need resources brought to bear for prevention and for treatment and to assist law enforcement, so that lives can be changed,” she said.

In denying the proposal, the AG’s office pointed to a number of ambiguities and problems, including that the proposal does not address sales in border cities and does not define the phrase “standard drink.”

Also, the AG’s opinion questioned whether the term “wholesale” is sufficient to inform voters at what stage of the distribution and sales process, and from whom, the tax will be collected.

Belew said she planned to rewrite her proposal and submit it at a later date in an effort to get it on the 2010 general election ballot.

Legislation that would have placed a 5 percent tax on liquor, beer and wine to fund a variety of substance abuse treatment programs was filed during this year’s legislative session but failed to get out of committee.

Sen. Hank Wilkins, D-Pine Bluff, sponsor of that proposed tax hike, said recently he would file similar legislation in the 2011 session.

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