Alcohol taxes to treat substance abuse.

08LSO-0131.C1

FISCAL NOTE

	FY 2009	FY 2010	FY 2011
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
GENERAL FUND	(12,134,508)	(12,729,783)	(13,354,708)
SPECIAL REVENUE FUND	14,567,574	15,187,179	15,836,678

Source of revenue increase (decrease): Transfer of all current excise taxes and net profits from alcohol to Substance Abuse Account within the Special Revenue Fund. Increase in the excise tax on malt beverages of $.045 per liter will also be distributed to the Substance Abuse Account.

Assumptions:

The above estimates are based on actual collections by the Department of Revenue, Liquor Division in FY 2007, with a projected increase in beer sales of 1% per year and a projected increase in wine and spirits sales of 5%.

The following table details the projected revenues to the Substance Abuse Account of the Special Revenue Fund.

Substance Abuse Account	FY 2009	FY 2010	FY 2011
Revenue source
Alcohol Profit	10,353,030	10,870,682	11,414,216
Current taxes on alcohol	1,727,981	1,802,930	1,881,512
Fees	53,497	56,172	58,980
Current alcohol revenues	12,134,508	12,729,784	13,354,708
Proposed $.045 - malt bev.	2,433,066	2,457,396	2,481,970
Increase to Sub. Abuse Acct.	14,567,574	15,187,180	15,836,678

This bill diverts all current alcohol excise taxes and profits from the General Fund to the Substance Account. Projected total revenues from current excise taxes and profits on malt beverages, fermented liquors, and spirits are projected at $12,134,508 for FY09, $12,729,784 for FY10, and $13,354,708 in FY11.

The new malt beverage tax of $.045 per liter is projected to increase revenues by $2,433,066 in FY09, $2,457,396 in FY10, and $2,481,970 in FY11. These revenues will also be distributed to the Substance Abuse Account.

Funds deposited to the Substance Abuse Account from July 1, 2008 through June 30, 2010 are appropriated to the State Treasurer to make repayments to the General Fund for General Fund appropriations to the Department of Health under sections 1 through 4 of 08LSO-0100 for substance abuse prevention, assessment and treatment programs.

Prepared by:   Dean Temte, LSO  Phone: 777-7881

(Information provided by Tom Montoya, Liquor Division; 777-6453)