05/16/1999 04:20 PM Senate CRA

              HB  92-MUNICIPAL TAXATION OF ALCOHOL                                                                              
                                                                                                                                
REPRESENTATIVE GARY DAVIS, sponsor of HB 92, explained the measure                                                              
is best described as a local control bill.  At present,                                                                         
municipalities cannot tax alcohol at a rate higher than the local                                                               
sales tax rate, if a sales tax exists.  HB 92 removes that                                                                      
restriction from statute and allows municipalities to charge a                                                                  
sales tax on alcohol sales at any rate approved by the voters of                                                                
the municipality.                                                                                                               
                                                                                                                                
Number 25                                                                                                                       
                                                                                                                                
DON DAPCEVICH, Director of the Advisory Board on Alcoholism and                                                                 
Drug Abuse, stated the Advisory Board strongly endorses passage of                                                              
HB 92.  Aside from the issue of alcohol consumption, HB 92 allows                                                               
communities to raise the resources to combat the costs associated                                                               
with alcohol misuse.  HB 92 provides that the associated costs fall                                                             
hardest on those who use the most alcohol.                                                                                      
                                                                                                                                
Number 050                                                                                                                      
                                                                                                                                
LOREN JONES, Director of the Division of Alcoholism and Drug Abuse,                                                             
Department of Health and Social Services (DHSS), stated support for                                                             
HB 92.  Many communities try to get local support for prevention                                                                
and treatment programs in their locales but find those effforts                                                                 
hindered by a lack of resources.  HB 92 allows communities to                                                                   
impose a tax to be used for law enforcement, prevention, and                                                                    
treatment programs.                                                                                                             
                                                                                                                                
There being no further testimony, SENATOR PHILLIPS moved HB 92 to                                                               
its next committee of referral.  There being no objection, the                                                                  
motion carried.