Attorney General No.
Secretary of State No.
ALCOHOL SURTAX FUND. CONSTITUTIONAL AMENDMENT. INITIATIVE STATUTE. Establishes Alcohol Surtax Fund in State Treasury. Imposes surtax of five cents per 12 ounces beer, 5 ounces wine, 3 ounces fortified wine and 1 ounce distilled spirits. Imposes additional per unit floor stock tax. Proceeds deposited into Alcohol Surtax Fund. Appropriates revenues from surtax fund for alcohol and drug abuse prevention, treatment and recovery programs (24%); emergency medical care (25%); community mental health programs (15%); child abuse and domestic violence prevention training and victim services (15%); alcohol and drug related law enforcement costs, other programs (21%). Prohibits affected program reductions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Initiative will result in revenues to the Alcohol Surtax Fund of $360 million in 1990-91 and $730 million in 1991-92 (a 5.8 fold increase over current revenues), declining thereafter due to decreasing alcohol consumption. Administrative costs estimated at less than $1 million annually. Increased sales tax revenues to the General Fund would be offset by decreased excise tax revenues. Local sales tax revenues will increase by $2.4 million in 1990-91, $4.7 million in 1991-92, and decline slightly in subsequent years. Unknown savings to state and local programs to extent that funded programs reduce drug and alcohol consumption and related injuries, illnesses and crimes. Unknown potential future state costs of up to hundreds of millions of dollars may result if the prohibition on funding reductions for affected services requires appropriations beyond the amount that would otherwise be provided in future budgets.
Andrew Mcguire C/O Lance Olson Olson, Connelly, Hagel & Fong, 300 Capitol Mall, Suite 350, Sacramento, California 95814
Alcohol Surtax Fund. California Initiative 491 (1989).