Proposed tax could hurt Hub restaurants/hotels

BOSTON – A proposed two percent tax on the sale of alcoholic beverages here is under attack from the Distilled Spirits Council, the national trade association representing producers and marketers of distilled spirits sold in the U.S.and No Boston Drink Tax, a coalition consisting of the Massachusetts Package Store Assn., Massachusetts Restaurant Assn., Beer Distributors of Massachusetts, Massachusetts Wine & Spirits Wholesalers and the Distilled Spirits Council.

The two percent citywide tax would mean double and triple taxation on alcoholic beverage purveyors and would impact the hospitality industry here, the Distilled Spirits Council estimates, by costing the city close to $10 million in lost sales and more than 130 jobs.

Distilled Spirits Council Vice President Jay Hibbard declared in a published report that “by instituting double and triple taxation on alcohol, the city of Boston will endanger jobs, limit sales, and ultimately hurt responsible consumers.” Currently on-premise alcohol sales are subject to both the 6.25 percent state sales tax and the additional 2.5 percent meals and lodging tax. The change would bring the city’s sales tax to 10.25 percent, one of the highest in the entire country.

For more details, contact the Distilled Spirits Council at 202-682-8840.

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