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Maryland Alcohol Tax Increase Adds Revenue

September 14th, 2011 by WCBC Radio

While it’s too early to draw any concrete conclusions, one state official says he doesn’t believe Maryland’s border counties such as Allegany will be hit as hard by the new alcohol tax as they were with the cigarette tax hike. WBAL reports Maryland raised roughly $6 million in added revenue in July from a 50 percent increase in the state’s sales tax on alcohol. If the revenue raised in July turns out to be the monthly average, it would add up to about $72 million in extra state revenue a year. Initial estimates projected the tax would raise roughly $85 million a year. A few years ago when the state increase taxes on cigarettes, Allegany County bars, liquor stores and general stores that sold tobacco products suffered a tremendous hit as many county residents opted to make the short drive to West Virginia or Pennsylvania for the lower priced cigarettes.  David Roose, director of the Maryland Bureau of Revenue Estimates, said that the increase from 6 to 9 percent on alcohol isn’t as dramatic as the cigarette tax hike was…

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