California BOE

The California State Board of Equalization voted (3-2) in favor today to fund ($250,000) for a Product Testing Implementation Plan for Flavored Malt Beverages.

The plan will establish a full-time position and funding for contract laboratory services to perform work associated with the regulations adopted on April 8, 2008, for the purposes of determining proper taxation when an alcoholic beverage meets the definition of a “distilled spirit” under the Alcoholic Beverage Tax Law.

California law is clear that beverages containing distilled spirits should be taxed as such. In 2008 the Board correctly determined that these products, commonly called alcopops, should indeed be taxed as distilled spirits. Proof however that alcohol producers are complying with the law is necessary and lacking. Alcopops producers of products like Mike’s Hard Lemonade and Smirnoff Ice have resisted offering conclusive evidence of compliance.  The Product Testing Implementation Plan for Flavored Malt Beverages will help accomplish that task.

Marin Institute expresses its unconditional support for the plan and its gratefulness to the board for their leadership in taking this next step to raise taxes on alcopops to reduce underage consumption.