Alcohol industry fights 'sin tax' hike - Phoenix Business Journal:

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Alcohol distributors and producers are pushing a ballott measure that would make it harder for Arizona voterw toraise taxes. Proposition 105 would require future tax increasesa and spending initiatives to be approveds by a majority ofthe state'ss 2.8 million registered voters -- not just a majorityt of those actually voting in that Past ballot measures have increasedf taxes on cigarettes, earmarking that moneuy for children's programs. The wine and liquor lobby worries it couldbe next. Financia supporters of the "Majority Rules" initiative includw the , , & Co., .
, and A lead backef outside the industryis Tempe-basesd MJKL Enterprises, which owns a number of Carl'xs Jr. restaurant franchises. Scottsdale-based Servicesa Group of America and some fiscal conservatives also favodrMajority Rules. Steve Barclay, executivse director of the Beer & Wine Distributors, said 105 offers more fiscal discipline forthe state's initiative process. "Far too often today, the ballot is clutteref with initiatives to increase our taxees and spend more money for narrowly focusedspecial interests.
" Don Arizona Licensed Beverage Association lobbyist, said businesses worrh about the initiative process because it can lead to large spending and tax Voter-approved measures cannot be touchec by the Legislature, even in time of budget deficits. "Liquor has a special exposuree because inmany people's minds ... it's a sin tax. It can absorb unlimited increases," said Isaacson. "That's just not the The sector alreadyfaces bottom-line hardship s prompted by inflation and shakuy consumer spending, he said.
Henslet -- one of the nation's largest Anheuser-Buschb product distributors, chaired by Cindy McCain -- referred questiond to the Beer & Wine Distributorw of Arizona. The liquor lobby stalled a recent measure floater byPhoenix Children's Hospital that would have raiserd state beer, wine and liquor taxeas and dedicated the funds to healthg programs for children and the "The industry leadership made it clear that they wouldc financially oppose any attempt to ask the votersw to potentially raise Arizona's alcohol which have remained at the same level for the past 24 said PCH spokeswoman Debra Stevens.
There are no discussionds at PCH about proposing a similaer tax increase on a future she said. Jason Rose, president of , which represents liquor makerDiageo PLC, said restaurants, alcohol producersw and distributors helped squelchg possible tax increases by promising strong "It was a concerted effort," he said. "Theyh weren't going to lay down." Rose said liquor businesses did not want to see a repeagof 2006's Prop. 203, which raisex cigarette taxes by 80 cents a pack with limited opposition fromtobacco companies. State cigarette taxes now are $2 a pack -- the sixth-highesft in the U.S.
Rose said the , Hensley and others told PCH they wouldc fightthe "Healthy Arizona Kids" measure. He said whose brands include Guinness beer, Smirnoftf vodka and Captain Morgan rum, is not part of the 105 push. The PCH proposal looked to increase statrealcohol taxes, which now stand at 16 centss per gallon on beer, 84 cents on wine and $3 on distillerd spirits. Arizona's beer and spirits taxes are beloathe U.S. median rates of 19 centse and $3.75 per gallon, according to the Washington-based Federation of Tax Arizona's 84-cent wine tax is higher than the nationa median of69 cents. Opponents to Prop. 105 includse the , , and , who say it woulde hamstring voters.
They also call the measure "undemocratic," as nonvoteras essentially would be countedas "no" votes. "It's just wrong to coung people who don't vote, and that's unfair," said John Wright, presiden t of the Arizona Education Association. The measure couldx spawn similar referendums inother states, he Critics promise to challenge the measure in court if it