Bozeman lawmakers propose higher alcohol taxes

By WALT WILLIAMS, Chronicle Staff Writer

HELENA -- The price a person pays for a can of beer or a glass of wine could go up if separate proposals by two Bozeman Democrats become law.

Rep. Chris Harris, D-Bozeman, is bringing back a bill that would raise taxes on beer, wine and liquor to pay for the prevention and treatment of fetal alcohol syndrome, or FAS a disabling birth defect caused by alcohol consumption.

House Bill 252 is similar to a proposal Harris brought before lawmakers in 2003. That bill didn't make it out of committee, and Harris gives this attempt a less-than-50/50 shot of success.

"But that doesn't mean it's not worth doing, because maybe more people will focus on the problem," he said Wednesday.

In the other chamber, Sen. Mike Wheat, D-Bozeman, has introduced a bill that would place a 5-cents-per-can tax on beer. The new tax would pay for alcohol abuse prevention programs. Wheat's bill has yet to be assigned a number.

Both lawmakers look at their proposals in the same light as the tobacco tax, which is used to cover the cost of tobacco-related social ills.

"It's a use tax," Wheat said. "You don't have to pay it unless you use the product."

Recent legislatures have been reluctant to pass tax hikes of any kind. In 2003, lawmakers raised taxes on tobacco, but only because they cut income and capital gains taxes.

Montana voters also voted to raise tobacco taxes in 2004 to pay for health care programs and insurance tax credits.

FAS is a leading cause of mental retardation and neurological dysfunction in the United States, according to the Montana Department of Public Health and Human Services, which has taken no position on HB 252.

About 21 children are born each year with FAS in Montana; another 87 children are born with alcohol-related birth defects. The state spends $24 million a year to care for people affected by FAS and Fetal Alcohol Spectrum Disorder.

FAS is caused by women drinking alcohol while pregnant. There is no known safe level of alcohol consumption for pregnant women.

Alcohol producers and distributors worry the new taxes are aimed at the wrong crowd.

"The problem is not the social drinkers that have the beer," Kristi Blazer, of the Montana Beer and Wine Wholesalers Association, said.

Blazer also said passing a beer tax would send the wrong message to out-of-state brewers who buy Montana barley.

The FAS bill would raise the state liquor excise tax by one-half of 1 percent. It would raise beer taxes by between a half-penny to 2 cents per barrel, depending on the size of the brewer, and it would raise taxes on wine and hard cider by a fraction of a penny per liter.

Harris said he is bringing the bill forward because federal funding for FAS prevention has dried up.

Wheat's 5-cent-per-can bill was drafted with input from Mother Against Drunk Driving. The revenue that tax would generate would pay for prevention programs, such as in schools, where Wheat believes such programs would do a lot of good.

A hearing for the FAS bill is scheduled for today.

Walt Williams is at wwilliams@dailychronicle.com

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