Members of the Neighborhood Market Association strongly opposed the $4.4 billion dollar tax plan introduced in the Legislature today that would dramatically increase the cost of alcohol products. The proposed tax hike on spirits, wine and beer will have detrimental impacts on local hospitality business, leading to loss of sales and potentially eliminating over 20,000 jobs statewide in the process. Furthermore, the projected loss in sales would reduce grocery, convenience and package store sales by nearly $470 million and restaurant and tavern sales by around $540 million. In total, retail sales are projected to decline by over $1 billion.
“With slumping sales and declining revenues, our businesses just can’t take another hit,” said Auday Peter Arabo, President of the Neighborhood Market Association. “Alcohol is already one of the highest taxed consumer good – Californians should not be forced to pay more for products they enjoy responsibly.”
Representing over 2,000 independent family-owned retailers throughout California, who employ over 21,000 workers and provide over $2.5 Billion in gross receipts to the State of California annually. The Neighborhood Market Association is dedicated to empowering independent retailers in the food and alcohol beverage industry throughout California, Nevada and Arizona.