Tuesday, February 21, 2006

CAPITOL HILL PROPOSES NEW WINE TAXES

The Bush administration is proposing new wine fees to raise an estimated $29 million to help fund regulations under the nation’s Alcohol, Tax and Trade Bureau. Although a similar proposal was killed last year, lawmakers have resurrected it without releasing any details. Industry leaders, however, believe it will be a lot like the last proposal including up to $100 for any label changes, $200 to register wine recipes and $500 for special permits. According to the seattlepi.com, a group of Northwest lawmakers sent a letter to Treasury Secretary John Snow urging the administration to drop the proposed law. “The wine industry in Washington and Oregon is growing rapidly, providing new economic development opportunities for agriculture producers and rural communities," the letter said. "However, most of our states' wineries are family-owned operations that can ill-afford a heavier tax burden on top of what they already pay now through federal and state excise taxes.” The letter was signed by 11 Congress members.