Opposition is building to plans to more than double alcohol beverage taxes in the state.
So far, the Delaware Brewers Guild and the Delaware Restaurant Association have announced their opposition to the bill.
The alcohol tax bill was quietly introduced as legislation reduced the size of the tobacco tax from the figure recommended by Gov. John Carney’s proposed budget.
The text of the legislation indicated the tax hike was relatively small when added to the price of a drink, but neglected to discuss the overall percentage of increase. According to information from the Restaurant Association, the tax would be more than double the rate in neighboring Maryland and Pennsylvania and would leave the First State with the highest alcohol tax in the region.
Based on information from the Restaurant Association, the tax would be more than double the rate in neighboring Maryland and Pennsylvania, and would leave the First State with the highest alcohol tax in the region.
The restaurant group also cited razor thin profit margins in the restaurant business and the negative effect the bill would have on the state’s growing craft beer industry. The craft beer industry now employees hundreds of people in breweries as large as 200-employee Dogfish Head and as small as one or two-person breweries.
Consumers buying beer, wine or spirits at their local liquor store are likely to be hit harder than their counterparts in other states, due to Delaware’s small size and a limited number of liquor stores.
States that allow beer, wine and liquor in supermarkets tend to have lower prices, due to stiff competition for customers. Neighboring Pennsylvania is also broadening its sales channels for beer and wine to grocery and even convenience stores.
The bill was slated for a hearing on Wednesday.
