Michigan Licensed Beverage Association and Michigan Spirits Association Oppose Potential...

Michigan Licensed Beverage Association and Michigan Spirits Association Oppose
Potential Alcohol Tax Increase

House Bill 5059 Would Open Door to Tax Increases, Causing Revenue Decline and
Job Losses Across Michigan

LANSING, Mich., June 16 /PRNewswire/ -- Concerned about Michigan's struggling
economy, The Michigan Licensed Beverage Association and the Michigan Spirits
Association, announced their opposition to House Bill 5059 today. Introduced
recently in the Michigan State Legislature, HB 5059 would effectively allow
any city, township or county in Michigan to place a question on ballots in
local elections to raise excise taxes on beer, wine and spirits sold bars,
restaurants, and nightclubs by as much as $0.50 per drink.

"Michigan's problems concerning job loss and reduced economic activity are
widely known and publicized, so it is worrying to see that our state
representatives would be in favor of a bill that opens the door for tax
increases that would exacerbate these problems," said Lance Binoniemi,
Executive Director of the Michigan Licensed Beverage Association. "The people
of Michigan are already struggling financially and any tax increases on
alcohol, no matter how big or small, that would add to their financial burdens
is simply bad policy."

According to the Distilled Spirits Council of the United States (DISCUS), a
national trade association representing America's leading distillers, the
beverage alcohol industry in Michigan:

-- Employs more than 83,000 people;
-- Contributes more than $7 billion in economic activity to the state;
and

-- Pays more than $700 million in state and local taxes.

HB 5059 threatens to decrease the industry's financial contribution to the
state of Michigan because raising taxes on alcohol would cause price increases
that would negatively affect the businesses where these products are sold.
The end result would be lost jobs and revenue for the cities, townships and
counties that decide to implement these tax increases. At the same time, 70%
of the average price of a bottle of spirits goes to taxes and this proposal
could mean an additional tax of at least a $12.00 tax on each liter of spirits
sold in bars, restaurants and nightclubs throughout Michigan.

"The facts speak for themselves," said Marsha Keenoy, a Director with the
Michigan Spirits Association. "Right now, our representatives should focus on
how to create jobs and stimulate growth in our state's economy. We need to do
all we can to keep businesses thriving in Michigan and this is a shortsighted
measure that would directly hinder those efforts."

About The Michigan Licensed Beverage Association

The Michigan Licensed Beverage Association is a not-for-profit corporation
created in 1939 by liquor licensees in the state of Michigan with the purpose
of mutual improvement, protection, and benefit, therefore promoting the moral,
social and intellectual advancement of the liquor licensees of the state of
Michigan. For more information on the association and its activities, visit
the MLBA website at www.mlba.org.

About The Michigan Spirits Association

The Michigan Spirits Association represents the marketing, sales and delivery
agents for liquor sold throughout Michigan. The association members employ
over 1,000 Michigan residents.

SOURCE Michigan Licensed Beverage Association; Michigan Spirits Association

Lance Binoniemi, Michigan Licensed Beverage Association, 800-292-2896,
lbinoniemi@mlba.org