A 50% increase of the Mississippi state bailment fee has been opposed by a collation of wine and spirits councils amidst fears of negative effects for local businesses and consumers.
A coalition formed of the American Distilled Spirits Alliance (ADSA), the Distilled Spirits Council of the United States (DISCUS) and the Wine Institute (WI) sent a letter today to Governor Tate Reeves urging his veto of another increase in the state bailment fee on every case of wine and spirits in the state.
The new fee would be $1.50 per case which is up from $1.00 in 2022. Prior to 2022, there was no such tax.
“The Mississippi Legislature just voted to raise prices on every bottle of wine and spirits in the state by passing a 50% fee increase,” said the coalition in the official press release. “This comes at a time when Mississippi’s hospitality industry has yet to fully recover from the pandemic while continuing to face new economic challenges like staffing shortages, inflation and supply chain disruptions.
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“As prices increase, consumers in border towns will simply drive across state lines into Tennessee, Louisiana or Alabama to buy the same products at a cheaper price. We urge the governor to veto this misguided proposal that would harm consumers and local businesses in the state.”
The 50% hike is the second increase in two years, and has caused concern over the potential to jeopardize jobs in Mississippi and cause an increase in prices for consumers. In a landscape of global economic uncertainty governments need to balance taxes against the greater good of the economy and the people of its country. Taxing alcohol can seem like an easy solution, but it’s rarely a solution that is supported by local businesses and consumers.
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