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Supes file protest against $1.48 per gallon wine fee

Friday, May 22, 2009

By Roger Phelps

Mace Meadows Golf & Country Club
An idea of easing California's budget disaster via an alcoholic-beverage surcharge that is floundering in the State Legislature now faces opposition from wine giants Amador and Napa counties.

Amador supervisors Tuesday ordered a "strongly worded" letter sent to state officials opposing any legislation in the spirit of either Senate Bill 558 - still alive - or Assembly Bill 1019, dead in an Assembly committee.

Both measures propose excise surtaxes levied directly against wine producers. California wineries are currently taxed 20 cents on each gallon of wine produced. SB 558 would raise that to $1.48 per gallon. AB 1019 would have raised it more sharply, to $2.56 per gallon.

"SB 558 is still out there," District 5 Supervisor Brian Oneto said.

District 2 Supervisor Richard Forster noted that Napa County's anti-558 letter has already arrived in Sacramento.

SB 558 and AB 1019 would raise money for drug and alcohol treatment programs to continue amid ongoing state-budget chaos. Voters Tuesday failed to ratify some new revenue-raising taxes.

Local vintners have said either beverage-surcharge bill could depress Amador County's commerce by affecting two high-profile industries, grape growing and winemaking. Grapes can be had more cheaply from growers outside Amador, as has been noted by Paul Sobon, co-owner of Sobon Family Wines near Plymouth. Vintners' profit margins might dictate they go elsewhere for grapes, winemakers have said.

Amador's letter will go to the Regional Council of Rural Counties, the California State Association of Counties, state legislators representing the county and to Gov. Arnold Schwarzenegger's office.

Estimates predicted AB 1019 would bring the state $1.2 billion in revenue, SB 558 less than that.

District 4 Supervisor Louis Boitano acknowledged that the state is in desperate need of money but said the current economy dictates avoiding tax measures that would create lower profit margins for businesses.


Roger Phelps


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