Businesses wary of city council's proposal to increase alcohol t - Boston News, Weather, Sports | FOX 25 | MyFoxBoston

Businesses wary of city council's proposal to increase alcohol tax

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BOSTON (MyFoxBoston.com) -- A new tax proposal might be tough to swallow for people who go out in Boston: Two city councilors want to raise a citywide tax on the sale of alcohol.

If it passes, it would tax drinks served at bars and restaurants or alcohol sold at liquor stores.

It wasn't too long ago lawmakers passed a sales tax on alcohol, and voters quickly repealed it. Now a city councilor is saying what he's proposing for Boston is so small, it won't be any kind of hardship.
   
But not everyone's buying it.

Boston City Council President Bill Linehan tells FOX 25's political reporter Sharman Sacchetti that he's pushing a new tax on alcohol sales in Boston because he believes it would help the greater good.

"Everybody stands to benefit from what is a nominal tax," he said.

On Wednesday, Linehan is filing paperwork to push a one to two percent tax on all alcohol sales in Boston.
   
He wants the money generated to go toward substance abuse treatment, and doesn't believe it would hurt restaurants, bars or stores.

"I know how much is made, and I know how much is effective as an economy but we should still put a little piece of it aside for those who are troubled with this crisis," he  said.
 
But Bob Luz, who heads up the Massachusetts Restaurant Association, said Boston already takes part of the meals tax.
   
"They grab 75 cents extra that stays within the confines of Boston," Luz said.

He says a new tax would hurt.      
   
"Restaurants are going through the worst four week period they've probably ever had as an industry. That aside, every time you take a little bit away, and statistics show, guests come in less often," he said.

Sacchetti checked with the Massachusetts Department of Revenue, who explained there is an excise tax on alcohol, paid by winegrowers, farmer brewers, wholesalers, and the like. Rates vary depending on the alcohol.         
   
At Huntington Wine and Spirits, owner Steven Rubin says a new tax would not help.

"We already have a tax on alcohol, one of the highest excise taxes already so this is a tax on a tax, which makes it a double tax," Rubin said.

Sacchetti asked if Mayor Walsh supported this. He said it's not before him and hasn't taken a position.
   
And here's a twist: As a new tax in Boston alone, this needs the support of the legislature and the governor.
   
House Speaker Robert DeLeo has gone on record as not supporting any new taxes or fees. Governor Baker went another step and took a "no new taxes" pledge.

It's just the start of a very long process.
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