LANSING – Officials in the office of Gov. Jennifer Granholm are refusing to comment on reports she has suggested an increase in the state’s beer tax, and possibly the tobacco tax, as one way of helping resolve the 2009-10 budget.
The state’s beer tax has not been raised in more than 40 years and reports have indicated Granholm has suggested doubling the tax from the current 1.9 cents for each 12-ounce bottle or can to 3.8 cents.
The state’s tobacco tax is now one of the highest in the country, at $2 a pack of cigarettes. The tax was last raised in 2004. While there are reports Granholm may consider a tobacco tax increase, what she would propose as an increase is not yet known.
In February, as part of her initial 2009-10 budget proposal, Granholm proposed increasing the state’s liquor tax (which had not been raised since the mid-1970s) as well as changes to the state’s laws to allow bars to stay open until 4 a.m.
A spokesperson for Granholm said the administration would have no comment on reports it is considering any tax changes.
The spokesperson also said that discussions on resolving the budget are ongoing.
A spokesperson for House Speaker Andy Dillon (D-Redford Twp.) said he would not have any comment on the speculation, though in another report he was reported to be opposed to the idea of raising the beer tax.
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