SENATE BILL REPORT

SB 5548

BYSenators Lee and Anderson

Authorizing counties to tax the sale of liquor to support housing programs for alcoholics.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 24, 1989

Senate Staff:Charles A. Woods (786-7452)

AS OF FEBRUARY 20, 1989

BACKGROUND:

Counties are authorized to participate in the program established under the Alcoholism and Drug Addiction Treatment and Support Act of 1987.  No authority was granted to individual counties to raise additional revenues for funding such programs.  Some counties believe that without a new source of funding for such programs they will not be able to participate to the fullest extent possible and that those people needing treatment will suffer.

SUMMARY:

Counties have the option of imposing a 5 percent of sales tax on wholesale sales of beer and wine, and liquor board retail sales of strong beer and spirits.  Counties would have to contract with the Department of Revenue for collection of the tax.  Counties imposing the tax would have to set up a housing fund for the revenue.  Monies from the fund could be used to pay costs associated with construction of housing units for use in county alcoholism treatment programs, service provided to residents at existing facilities, and acquisition of land.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 20, 1989