Review of State Laws Restricting Local Authority to Impose Alcohol Taxes in the United States

Abstract

Building on the extensive research literature demonstrating that increasing alcohol prices reduces excessive alcohol consumption and related harms, this article presents the results of a 50-state review of local authority to tax alcohol in the United States. Method: Between 2013 and 2015, legal databases and government websites were reviewed to collect and analyze relevant statutes, ordinances, and case law. Results reflect laws in effect as of January 1, 2015. Results: Nineteen states allow local alcohol taxation, although 15 of those have one or more major restrictions on local authority to tax. The types of major restrictions are (a) restrictions on the type of beverage and alcohol content that can be taxed, (b) caps on local alcohol taxes, (c) restrictions on the type of retailer where taxes can be imposed, (d) restrictions on jurisdictions within the state that can levy taxes, and (e) requirements for how tax revenue can be spent. Conclusions: The number and severity of restrictions on local authority to tax alcohol vary across states. Previous research has shown that increases in alcohol taxes can lead to reduced excessive alcohol consumption, which provides public health and economic benefits. Taxes can also provide funds to support local prevention and treatment services. Local alcohol taxes therefore present an important policy opportunity, both in states that restrict local authority and in states where local authority exists but is underused. (J.

Implementing intersectoral alcohol policies at the local level: A case study from Santiago, Chile, 2014-2017

“…First, local governments are often responsible for implementing national policies, including the administration of alcohol licences, sobriety checkpoints, and alcohol brief interventions (Holder & Reynolds, 1997). Second, local governments have, in some jurisdictions, the statutory right to introduce alcohol control policies, such as alcohol taxes, restrictions on outlet density, or trading hours (Grace et al, 2016;Mosher et al, 2017;Wilkinson et al, 2020). Local policy space is especially important when national policy space is constrained due to a lack of prioritisation of alcohol policies or opposition from the alcohol industry.…”

The association between excise tax structures and the price variability of alcoholic beverages in the United States

“…As of January 2015, 19 out of 50 states allow localities to impose alcohol taxes, which presents an important opportunity for local actions to reduce excessive drinking and its burdens. [28]…”

Measuring Attitudes About Alcohol Misuse and Dependence Among Alaska Native People Within a Tribal Health Care System

“…Among AN/AI people, public attitudes about alcohol may be influenced, for example, by the introduction of alcohol by outsiders during colonization, negative stereotyping of AN/AIs by researchers (eg, the Barrow Alcohol study), or belief in the “firewater myth,” which purports that AN/AI people are more susceptible to the effects of alcohol because of biological or genetic differences 14–17 . Attitudes toward alcohol use and misuse may also reflect the environments in which there are AN/AI people, such as villages that are accessible only by air or local laws prohibiting the use or sale of alcohol 18,19 . Although survey instruments exist to measure public attitudes about alcohol in the general US population, no such tools have been developed and validated to assess the attitudes of AN/AI populations about alcohol misuse and dependence.…”

“…[14][15][16][17] Attitudes toward alcohol use and misuse may also reflect the environments in which there are AN/AI people, such as villages that are accessible only by air or local laws prohibiting the use or sale of alcohol. 18,19 Although survey instruments exist to measure public attitudes about alcohol in the general US population, no such tools have been developed and validated to assess the attitudes of AN/AI populations about alcohol misuse and dependence. This results in a dearth of evidence about perceptions of alcohol misuse and dependence to guide treatment development and delivery efforts in AI/AN communities.…”