There is some good news for overburdened taxpayers in Baltimore this week. A proposed $11 million tax on bottled beverages, including beer and soft drinks, failed to pass the Baltimore City Council. Baltimore’s Mayor Stephanie Rawlings-Blake proposed the tax as a means to help close a $121 million budget gap. The final vote was 7-7 with one recusal. Councilman Warren Branch cast the deciding vote. He noted that it was e-mails from constituents – he said about 100 wrote in opposition to the tax – that convinced him to vote against the proposal. NTU and its members were part of the opposition, writing e-mails and placing calls to members of the Council.
The problem NTU and its members have with the proposed bottle tax is that it would combine with existing state and local sales taxes to considerably increase the price charged on bottled beverages. A four-cent per container tax would increase the cost of a 30-pack of beer $1.20. Baltimore is already regarded as one of the worst-taxed jurisdictions in Maryland, as several state and local tax rates piggyback on each other to create a very heavy tax burden for residents and businesses.
Also, the proposed tax heavily burdens convenience stores, restaurants, and other small businesses, as beverages make up a significant portion of their sales. The price differentials of their products compared to those offered in neighboring jurisdictions, such as Baltimore County, will lead to more cross-border shopping, or fewer purchases by those passing through the city.
Of course, the outcome of this battle does not mean the war against higher taxation in Baltimore is over. Already, Mayor Rawlings-Blake and her tax-and-spend allies on the City Council say they hope to bring the bottle tax up for another vote soon. We’ll keep our eyes on this proposal and will be ready to fight it should it come before the Council again. If you live in the Baltimore area, you can click here to add your voice to helping prevent this $11 million tax on the bottled beverages you drink.