Brewnotes

Delegates Malone & DeBoy,

I would like to understand your position on House Bill 832.   I am concerned that this is an easy target to raise taxes without looking at the source of Maryland’s budget woes.   While I am not opposed to raising taxes, I take great exception to the following passage of the bill:

"Comptroller shall distribute the remaining alcoholic beverage tax revenue to the General Fund of the State".

If this bill was intended to raise funds for health concerns, why would any funds at all make it into the general fund? Beyond this, the rate of increases for the different beverage areas are astronomical.   My intelligence is being mocked when I’m told its $0.10/beer.  In actuality, the percentage increases are obnoxiously and ridiculously high:

MD proposed tax rates ($$/gal):

	beer	1.16  (1,288% increase)
	wine	2.96  (740% increase)
	spirits	10.03 (668% increase)

If the tax increase passes, our state alcohol beverage taxes will be four times the
national average for beer (highest in the nation; 2nd place Alaska at $1.07/gal), over three-and-half times the national average for wine (highest in the nation; 2nd place Alaska at $2.50/gal), and just shy of 50% higher than the national average for spirits (eleventh-highest in the nation; 1st place Washington state at $26.45/gal) [Source: the Jernigan paper referred to in the House bill preamble].  Please take into consideration the true impact of such a bill.  Any way you slice it, this bill is bad fiscal policy and doesn’t solve any aspect of the looming budget crisis.   The only true way to solve the budget crisis is to reduce spending.

Looking forward to your response,

Ben Brouse

Update #1: I added the link to the figures that were cited.

Update #2: Both Delegates responded that they were opposed to this bill.    I will be watching.

Ben Brouse Beer, Food & Drink, Wine

Tom Wark writes the Fermentation blog.   In it, he describes the absolute mockery of testifying before a committee that isn’t going to do anything regardless of the testimony.  Yes, this is how democracy really works in Maryland.  Too bad it was regarding the proposed Direct Wine Shipping bill (HB 716)  that I’ve talked about so much before.  

Ben Brouse Beer, Food & Drink, Wine

Thank you for contacting me concerning HB 832 – The Lorraine Sheehan Health and Community Services Act of 2010.

This bill is scheduled for a hearing on March 11, 2010 before the Ways and Means Committee.  There is no chance any tax bill will pass in FY 2011.
I appreciate hearing from you regarding this issue.

Very truly yours,

Delegate Frank S. Turner
House Ways and Means Committee
Chairman, Finance Resources Subcommittee
District 13 – Howard County
410-841-3246/301-858-3246
Fax:  410-841-3986
E-mail:  frank.turner@house.state.md.us
http://mlis.state.md.us/

Ben Brouse Beer, Food & Drink

Ben Brouse Beer, Food & Drink, Prelude

Interesting chatter over the last few days about a new alcohol tax bill in Maryland.   Over the past weeks I’ve outlined Maryland’s Wine Siege.    Now this gem.   Deceptively named the “The Lorraine Sheehan Health and Community Services Act of 2010”.     The house bill is here.  The senate version is here.

Synopsis:

Increasing the State tax rates for alcoholic beverages sold in Maryland from $1.50 to $10.03 per gallon for distilled spirits, from 40 cents to $2.96 per gallon for wine, and from 9 cents to $1.16 per gallon for beer; providing for the distribution of the additional revenue to special funds to be used only for the purpose of providing additional funding for specified health services; etc.

Brandon Miller-Millhouse summarized as following:

“A Maryland Brewery" Brews 40 Barrel batches
40 bbl = 1240 gallons presently taxed at $111.60
with bill passed that same single batch would be taxed $1,438

…So lets say a brewery right now sells a gallon of beer for $5 (just an example) this tax makes them to have to raise the price of their product to say $7.50-$8 per gallon. The Distributor has to mark it up to retain their profit margin ($10-$11)and the retailers have to mark it up retain their profit margin ($13-$15) and WE are left paying Stone Six-Pack Prices for everything…oh and I almost forgot the 6% MD sales tax.

BTW – Brandon reads this blog, so if you’d like to leave him feedback, do it here.  I won’t be handing out his email address.

Conclusion

Just another example of how clearly broken Maryland’s three-tier distribution system remains.  I completely understand wanting to raise the taxes to be more in-line with other states, but don’t provide that comparison to me regarding states that don’t have a bogus three-tier distribution system in place.   The reality is, the distributors don’t care because they are going to add their costs on regardless of what this bill does just as Brandon has previously outlined.

Opinions and comments welcome. 

Ben Brouse Beer, Food & Drink, Wine

Last evening, I had the pleasure of trying Troegs Nugget Nectar on firkin.  A seasonal brew they describe as a Imperial Amber.   Coming in @ 7.5ABV and 93 IBU’s, this beer can be a real beast.

While the beer was OK, it wasn’t the experience I had hoped.    I don’t think it was cellared properly.   While you may think this isn’t too big of deal, the beer was as cloudy as many of the primary fermentations I’ve run and so active that they were pouring foam into pitchers, then into my glass.  The result – real ale with all the natural carbonation knocked out of solution.   

On the positive side, it was amazing how 93 IBU’s were masked in this beer.  It was extremely easy drinking and enjoyable outside of my other experience.

I hope my little story tells you how important a good cellar man is to real ale.   You can’t have one without the other.

Update #1  (2/19/2010 1pm):  This is not an attack on the place of business that served the firkin, I really enjoy the variety of beers served, the food and the staff.  In fact,  I purposely didn’t even mention their name because I didn’t want Google holding onto that forever.   I merely wanted to tell of my experience and elicit feedback and thought.    FWIW, I will continue to enjoy great beer at this great pub.  I am fascinated by real ale and will continue to seek it out.

Ben Brouse Beer, Food & Drink

In this article, MD Senate President Thomas V. Mike Miller cites “institutional inertia” regarding the city of Annapolis’ inability to remove snow.    He also says “This city is stuck in a time warp".  

I read both of these quotes and nearly landed on the floor laughing.   You do understand that institutional inertia is one of the very tactics that he utilizes to govern.    The fact that he won’t allow wine & beer to be shipped to Maryland is not only stuck in a time warp but also draconian and neo-prohibitionist.    Not allowing the bill to get out of committee when 106 out of 188 legislators support the bill is institutional inertia.

This article depicts the liquor lobby’s stranglehold on our elected officials:  “But Maryland’s liquor wholesalers won’t give an inch. Until now, neither have their (handsomely rewarded) champions in the legislature. “

Mr. Miller should begin choosing his words a little more wisely as he has become a hypocrite to cite institutional inertia as it is a tactic for which he is very familiar.

Please support Marylanders for Better Beer & Wine Laws.   They have an on-line petition that I urge you to sign.    Yes – Maryland’s Wine Siege Continues.

Ben Brouse Beer, Food & Drink, Wine

When I head into a new pub or place I haven’t been in a while, I typically follow the following process:

1. Look at the tap handles – just the big boys (AB/SAB Miller/Coors)?   or someone who cares?
2. Look at the bottles they serve – same criteria as above
3. Does the place have a decent bartender? – you would be surprised at the number of places that ignore this.
4. If I’m still around – what’s the atmosphere, do I want to stay here?
5. Order a cheeseburger – if a pub can’t make a decent burger, you know the rest of the food stinks
6. Decide if I would visit this place again.

What process does everyone else in the blogosphere follow?

Ben Brouse Beer, Food & Drink

Went to the St Bernardus Tasting at Victoria Gastro Pub on Saturday night.   The beers were amazing.   The pub has an incredible beer list with Alex at the helm.    He was very knowledgeable.    Highlights of the evening: Pater 6 on draught,  24 faucets & over 100 bottles. Pater 6 – “This “Paterke” is a chestnut coloured dark beer with a high fermentation (6.7 alcohol content) and a full taste.”   A very nice belgian dubbel!     The Prior 8 was excellent also. If you haven’t been to a Baltimore Beer Week (#bbw09)event yet there are still plenty.    I’m sure I’ll be hitting something at Metropolitan this week.   Prost!

Ben Brouse Beer, Food & Drink

Had a great time aboard the USS Constellation for the opening ceremony of the 1st Annual Baltimore Beer Week (#bbw09).    Got to talk to a ton of people from the old Sean Bolan’s days.  Boog Powell tapped the firkin of Clipper City Loose Canon.  “It’s tapped hon!”  “Squire Frederick” was a nice touch to the ceremonies.

Beer highlights for me – Oliver Dark Mild, Sierra Nevada Harvest Ale & the variety of beers that Legends was pouring.   Special thanks to Mick Kipp for arranging my invite to this!

Ben Brouse Beer, Food & Drink