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Lawsuit Seeks Reclassification of Alcopops
November 15, 2006

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News Summary

Santa Clara County, Calif., has announced plans to file suit to try to force the state to reclassify so-called "alcopop" drinks as liquor products, not beer, the San Jose Mercury News reported Nov. 14.

If the county succeeds in its lawsuit against the state Board of Equalization, the tax on alcopops would rise from 20 cents per gallon (the beer tax rate) to $3.30 per gallon (the tax rate for liquor). Alcopops are made with malt, like beer, but are sweetened and often branded with liquor names like Smirnoff and Bacardi.

A Board spokesperson said that the state Alcoholic Beverage Control (ABS) agency classifies alcopops as beer, and an ABC spokesperson said his agency takes its lead from the federal Tax and Trade Bureau.

Prevention experts say that taxing alcopops at a higher rate would discourage adolescents from buying the drinks. Surveys show that alcopops are particularly popular among teen drinkers. The proposed reclassification would increase prices on a six-pack of alcopops by $2-3.

 

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