HomeMy WebLinkAboutMINUTES - 06271989 - 1.42 Board of Supervisors
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FROM: Phil Batchelor, County Administrator
DATE: June 20, 1989 =_
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SUBJECT: LEGISLATION WHICH ADDRESSES ATTEMPTS TO INCREASE
THE EXCISE TAX ON ALCOHOLIC BEVERAGES
Specific Request(s) or Recommendations(s) & Background & Justification
RECOMMENDATION:
Refer this report to the Internal Operations Committee to provide continuing oversight and
subsequent reports to the Board of Supervisors.
BACKGROUND:
There are currently seven pieces of legislation which address the issue of an excise tax on alcoholic
beverages in one way or another. A summary of each of these measures,along with the current status
of each follows:
AB 1712 (Harris) - As amended May 2, 1989.
Authorizes counties, upon a 2/3 vote of the board of supervisors, to impose a transaction and use
tax on alcoholic beverages not to exceed 3%, to provide funds for essential or customary public
services.
AB 1712 is currently on referral to the Assembly Revenue &Taxation Committee. It failed passage
on June 12, 1989.
Continued on attachment: YES Signature:
YRecommendation of County Administrator Recommendation of Board Committee
Approve Other:
Signature(s):
Action of Board on: - June 27_ 1989 Approved as Recommended x Other
Vote of Supervisors I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
X Unanimous (Absent -- ) AND ENTERED ON THE MINUTES OF THE
Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN.
Absent: Abstain:
Attested June 27 , 198 9
cc: County Administrator Phil Batchelor, Clerk of the Board
Health Services Director of Supervisors and County Administrator
Mental Health Director
Alcohol Program Chief
By ��� , Deputy Clerk
CLVM:eh(alcohlbo)
` - n
AB 2051 (Connelly) - As introduced.
This is currently only a spot bill which makes no substantive changes in law.
AB 2051 is currently on referral to the Assembly Revenue & Taxation Committee.
AB 2066 (Killea) - As amended May 24, 1989.
Increases the tax on beer from $0.04 per gallon to $0.20 per gallon, effective July 1, 1990.
Increases the tax on wine from $0.01 per gallon to $0.15 per gallon, effective July 1, 1990 and at
higher rates for wines with a higher percentage of alcohol in them as well as for champagne and
sparkling wine.
Increases the tax on distilled spirits from$2.00 per gallon to$3.25 per gallon,effective July 1, 1990.
One-half of the increased tax revenue is allocated to the State General Fund. Of the other one-half,
30% is allocated for drug and alcohol abuse prevention, education, and treatment programs,
including activities in the public school. Forty percent of this one-half is allocated to providing
trauma care. The remaining 30% of this one-half is allocated for the cost of providing law
enforcement.
The bill also provides that each year the Board of Supervisors will report to the Legislature regarding
the accomplishments of drug and alcohol abuse prevention, education and treatment programs
funded by this legislation. The bill also requires that a specific type of evaluation mechanism be
designed, including specific numerical objectives which must be met or exceeded if a program is
to be judged successful.
AB 2066 has passed the Assembly Revenue & Taxation Committee and is currently on referral to
the Assembly Ways and Means Committee.
AB 2441 (Cortese) - As introduced.
This bill would increase the tax only on wine from$0.01 per gallon to$0.10 per gallon and at higher
rates for wine with higher alcohol content.
The bill also provides that it would only becomes effective if ACA 41 (Cortese) is approved by the
voters.
AB 2441 is currently on referral to the Assembly Revenue & Taxation Committee.
ACA 41 (Cortese) As introduced.
This proposed amendment to the State Constitution would exempt from state and local agencies'
expenditure (Gann) limits the proceeds of any increase in the excise tax on wine which are levied
on or after January 1, 1990.
ACA 41 is currently on referral to the Assembly Revenue & Taxation Committee.
- 2 -
SB 1243 (Garamendi) - As introduced.
At this point this is only a spot bill which makes only technical changes to the tax on alcoholic
beverages.
SB 1243 is currently on referral to the Senate Revenue & Taxation Committee.
SB 1597 (Alquist) - As amended May 11, 1989.
SB 1597 is an identical companion bill to AB 2441 which increases the excise tax on wine from$0.01
per gallon to $0.10 per gallon.
SB 1597 has passed the Senate Revenue & Taxation Committee and the Senate Appropriations
Committee and is currently on the Third Reading File on the Senate Floor.
Follow-up to the Alcohol Summit and Drug Summit is currently on referral to the Internal Operations
Committee. Since plans to increase the excise tax on alcoholic beverages are so closely tied to plans
for a follow-up conference on Substance Abuse, it is appropriate for the Internal Operations
Committee to also follow and make recommendations to the Board of Supervisors on legislation
which would increase this excise tax in one way or another.