TAX NEWS - June 2010

San Francisco may impose booze tax

SAN FRANCISCO — San Francisco could become California's first city and county to tax booze — about a nickel a drink — in an effort to recover taxpayer health care costs for alcohol abusers.

Supervisor John Avalos proposed the fee legislation Tuesday, saying it would bring in $15 million a year to recover the costs of the ambulance and hospital costs involved in transporting and treating inebriates as well has health department programs aimed at alcohol abuse.

Avalos says it's designed to target wholesalers by imposing a 0.076-cent per-ounce of alcohol sold. He estimates it would add a little less than a nickel to the cost of a drink.

Public health director Dr. Mitch Katz says he supports the legislation, saying alcohol abuse has a tremendous cost on the health care system.