Massachusetts No Sales Tax for Alcohol Initiative
The No Sales Tax for Alcohol Question, also known as Question 1, was on the November 2, 2010 ballot in Massachusetts. The measure asked voters whether to repeal a sales tax on alcohol sales. The ballot measure for the 2010 ballot was added after the Massachusetts State Legislature increased the sales tax in the state from 5% to 6.25% and eliminated an exemption for alcohol sold in liquor stores.
The Measure passed with 52% of the vote thereby eliminating the sales tax on alcohol beginning January 1, 2011.
Text of measure
Summary
The summary of the measure reads:This proposed law would remove the Massachusetts sales tax on alcoholic beverages and alcohol, where the sale of such beverages and alcohol or their importation into the state is already subject to a separate excise tax under state law. The proposed law would take effect on January 1, 2011.
A YES VOTE would remove the state sales tax on alcoholic beverages and alcohol where their sale or importation into the state is subject to an excise tax under state law.
A NO VOTE would make no change in the state sales tax on alcoholic beverages and alcohol.
Support
Arguments
- Liquor retailers in the state had argued that the 6.25 percent sales tax on alcohol is making sales decline, that more people are heading to New Hampshire to buy their alcohol, since that state is tax-free. According to retailers, liquor sales in Massachusetts have declined from 10 to 40 percent in the past year.
Opposition
Opponents
- Senator Steven Tolman
- The Committee Against the Repeal of the Alcohol Tax
- Massachusetts Hospital Association
Arguments
- Alcohol is not a necessity and does not deserve a special tax exemption. The only goods in Massachusetts exempt from the sales tax are necessities like food, clothing, and prescriptions. If anything should be taxed, products like cigarettes and alcohol should be.
- The tax has brought in $93 million in the current fiscal year that has helped fund the operations of recovery high schools
Financing
Contributor | Amount |
Association For Behavioral Healthcare Inc | $30,000 |
The Health Foundation of Central MA | $10,000 |
Recovery Homes Collaborative, Inc | $9,000 |
Spectrum Health Systems, Inc | $6,000 |
Advocates, Inc. | $5,000 |
Bay Cove Human Services | $5,000 |
Behavioral Health Network | $5,000 |
CAB Health & Recovery Services, Inc | $5,000 |
Children's Hospital | $5,000 |
Community Healthlink | $5,000 |
High Point Treatment Center | $5,000 |
Northeast Hospitals | $5,000 |
North Suffolk Mental Health Assn. | $2,700 |