Dime a drink: Help us inform legislators about the need for an increased alcohol excise tax
The alcohol excise tax is a true "user fee."
Twenty percent of drinkers consume 85 percent of all alcoholic beverages. That means that the remaining 80 percent of drinkers consume on average relatively little alcohol and pay a small amount of alcohol taxes. The state excise tax falls on heavy drinkers who appropriately assume a greater share of the cost of problems caused by drinking.
Three out of four Minnesotans support increasing the alcohol tax.
Recent surveys from the AARP and The Robert Wood Johnson Foundation show strong support for an increase in the alcohol excise tax to pay for public safety, prevention, treatment, and law enforcement.
The costs of alcohol use far exceed alcohol tax revenue.
Alcohol use cost Minnesotans $4.5 billion in 2001, according to a 2004 study by the Minnesota Department of Health. That amounts to over $900 for every person in the state. These costs are 17 times higher than the $260 million collected from alcohol sales in 2004.
The alcohol excise tax was last increased in 1987.
In the past 20 years, revenue from Minnesota’s alcohol excise tax has declined by nearly 40 percent in real value. The alcohol excise tax currently brings in less than ½ of 1 percent of all state revenue — less than what is collected through the deed transfer tax or the mortgage registry tax.
Other states have recently increased the user fee on alcohol.
Since 2002, ten states have increased their alcohol excise tax.
A modest increase in the alcohol excise tax will generate funds to pay for the costs of alcohol and other drug use.
An increase of a nickel per drink in the state alcohol excise tax will generate an additional $112 million per year to pay for criminal justice, law enforcement, treatment, detox services, and prevention.
Local governments bear most of the high costs of dealing with alcohol-related problems.
The economic burden of alcohol use in Minnesota includes costs for public safety, medical treatment, law enforcement, fire and emergency response, criminal justice system, chemical dependency treatment, detox facilities, damage to cars and other property, and the social costs resulting from violence and abuse. Most of these costs fall on cities and counties. |
Download a fact sheet from the FACTS Coalition Web site to get more information.
Help us inform legislators about the importance of the dime-a-drink tax. Download a sample letter here, personalize it and send it to your legislator.
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After you contact your legislator, send us an e-mail to let us know! Thanks.
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