February 28, 2013
To the Members of the House Taxes
Committee:
WineAmerica, the National Association of American
Wineries, on behalf of our members in Minnesota and across the nation, urge you
to oppose H.F. 885 and any similar proposals. Imposing significant wine excise tax increases
would threaten
the dynamic growth of Minnesota’s wine industry and the state’s valuable
investments in cold climate grape hybridization research.
More than 50 wineries have been established in Minnesota in the last
decade and over 60 are in operation. The
significant capital investment required for these businesses, in vineyards, equipment,
and existing federal and state tax burdens, make excise tax increases particularly
devastating. Minnesota wineries are
directly responsible for hundreds of jobs and millions in economic impact
annually. These businesses are dedicated
to Minnesota family farming and sustainable rural development. Imposing a 10-fold excise tax increase would
significantly weaken the financial condition of the state’s wineries.
Minnesota is a world leader in cold climate grape hybridization
research. The dynamic growth of local wine
industries, not only in Minnesota, but across the Midwest and Canada, are the
direct result of the introduction of commercial grape varieties by the
University of Minnesota. Growers may
obtain these varietals only from a licensed nursery. The University maintains exclusive control
over their sale and distribution, and research and the development of new
varietals is ongoing. Imposing
significant excise tax increases would be at direct cross-purposes to this
investment in cutting edge research.
Excise taxes do not target problem drinking. 95% of Americans
who drink wine consume light-to-moderate amounts—consumption often associated
with reduced healthcare costs. Heavier
drinkers, meanwhile, are the least responsive to tax changes. Wine excise tax increases reduce healthful
wine consumption without reducing problematic drinking.
Excise tax increases would be a devastating change for your state and
for consumers. WineAmerica urges you to
vote against imposing new wine excise tax increases.
Sincerely,
Mark Chandler
Executive Director
Executive Director
