Governor calls his beer tax proposal ‘out of kilter’

At his Friday morning news conference, Governor Jim Justice admitted that his original proposal to meteorically raise alcohol taxes in the state was flawed. He announced his willingness to change this proposal, which is part of his package to do away with the state personal income tax and replace it with a variety of other taxes.

“Without any question I’ve said over and over, from the standpoint of beer, wine, and liquor, my numbers were out of kilter,” Justice said. “We change them. That’s what we’ll do.”

This has to be sweet music to the state’s small brewery, winery and distillery businesses, which would have been put in a most precarious position if Justice’s original proposal had found its way into law.

Three separate income tax elimination plans are now floating in the legislature. One from the Governor, one by the Senate leadership and one by the House leaders. The fact that neither the House nor the Senate versions embraced the Governor’s huge alcohol tax increases, is a definite win for industry. While we are still a good way from the finish line, and more modest alcohol tax increases are still on the table, it appears that the draconian alcohol tax hikes are dead this year.

Justice used the news conference to announce that he is calling House and Senate leaders to meet with him Monday in an attempt to hammer out a compromise bill that would eliminate the state income tax, yet be as fair as possible to all income groups, individuals and businesses. “I’m perfectly willing to compromise in every way on my stuff,” he said. “We can tweak and change my plan and I welcomed it in every way in the world.”