That’s A Wrap; or, Sour Grapes?
The Maryland General Assembly wrapped up the 2011 session late Monday night with mixed blessings for wine lovers across the state. Although we finally got a direct shipping law passed (albeit somewhat watered down with retailers left in the cold), we also got a significant bump in the taxes levied on alcoholic beverages. The governor is expected to sign both bills into law, taking effect on July 1, 2011
Although early discussions on the tax rate proposed a gradual increase by 1% a year through 2012 – from the current 6% up to 9% – last-minute amendments this weekend scrapped that plan in favor of an all-at-once increase this year. The 50% bump puts Maryland well above neighboring Virginia (5%), Pennsylvania (6%), West Virginia (6%), D.C. (6%) and Delaware (an amazing 0%).
While the increase goes to a respectable cause full of political brownie points – school construction – I have to wonder what the effect might be on those delicate liquor stores we worked so hard to protect by barring wine shipments from out-of-state retailers when lower prices await consumers just across the borders of our (geographically) small state (can you feel the sarcasm?). Granted, consumers in the middle of the state like yours truly (Howard County) aren’t likely to drive 60+ minutes to avoid the 3% tax difference. But for residents in the DC suburbs, Frederick, or even the northern Baltimore suburbs might run across state lines to stock up for a big event. Technically that’s illegal – but I never saw that prevent those fireworks stands from hawking their business along I-70 north of Hagerstown or I-83 north of Baltimore. Consumers will follow the best deals.
Are you planning any interstate alcohol smuggling come July 1? If you do, you might want to consider hiring a vessel that can make the run in less than twelve parsecs.
April 14th, 2011 at 5:53 am
As someone living in SW Frederick County the Leesburg Costco is looking better and better!