More than 300 Maryland jobs could be lost if proposal is approved

During a hearing today before the Maryland Senate Budget and Taxation Committee, the Distilled Spirits Council of the United States (DISCUS) submitted testimony in opposition to SB 0172. This legislation proposes an increase to the already hefty state sales tax levied on beverage alcohol products and could cost more than 300 Marylanders their jobs.

The testimony, submitted by DISCUS Senior Vice President of State Government Relations Jay Hibbard, underscored the high tax rate already in place on beverage alcohol in Maryland and the negative impacts that would occur on an already decimated hospitality industry.

“This tax increase will cause consumer prices to go up, retailer sales to go down and a significant loss of Maryland jobs,” Hibbard said. “The state should be seeking measures to accelerate the hospitality industry’s recovery from the harsh economic impacts of the pandemic, not burdening these struggling businesses and consumers with more taxes. We urge the committee to reject this proposal and the negative impacts it would have on Maryland consumers and businesses, as well as the local economy.”

According to DISCUS analysis, if this tax increase is approved, Maryland businesses will lose more than $12 million in sales from spirits alone and $21 million with beer and wine included.