Segerblom again pushes bill to raise Nevada ‘sin’ taxes
CARSON CITY — A Nevada senator wants to raise taxes on beer, liquor and smokes to fund substance abuse programs and create a pilot program to treat hard-core heroin addicts.
Sen. Tick Segerblom, D-Las Vegas, presented Senate Bill 181 on Wednesday to the Senate Committee on Health and Human Services. The measure seeks $65 million a year to set up the Treatment of Substance Abusers within the state general fund. The account would be used to fund drug and alcohol treatment programs and specialty courts, Segerblom told the committee.
He proposed a similar bill in 2015.
Another provision requires the Division of Public and Behavioral Health to establish a four-year pilot program, at $10 million annually, to treat heroin addicts.
“I think the war on drugs is over and we’ve lost,” Segerblom said. “We have to stop criminalizing addicted behaviors and start treating them as mental and physical illness, and that’s what SB181 starts to do.”
He said the idea is to tax the products at the root of addictive behavior that leads to expensive social consequences.
Besides raising excise taxes on alcohol and cigarettes, the bill would increase state gambling license fees by one-quarter percent, raising the tax on gross revenue paid by the largest resorts to 7 percent.
The bill was supported by Michael Hackett with the Nevada Public Health Association.
But lobbyists for tobacco companies, big breweries and distilleries testified against the bill. Some said while they support the concept, they opposed higher taxes on their industries.
Keith Lee, representing the Distilled Spirits Council, said projected liquor sales in Nevada would drop by more than $50 million and result in more than 700 job losses.
“Suffice it to say, we oppose the funding mechanism of this that would increase alcohol taxes,” he said.
Similar concerns were raised by lobbyists for beer, wine and tobacco companies.
No action was taken by the Health and Human Services Committee. Should it approve the policy, the measure would likely be referred to taxation or money committees to debate the funding aspect of the bill.
Contact Sandra Chereb at schereb@reviewjournal.com or 775-461-3821. Follow @SandraChereb on Twitter.
Tax increases sought under SB181
Alcohol:
- Malt beverages from 16 cents to 24 cents per gallon.
- Liquor with up to 14 percent of alcohol, from 70 cents to $1.05 per gallon.
- Liquor with 14 percent to 22 percent alcohol, from $1.30 to $1.95 per gallon.
- Liquor with more than 22 percent alcohol. from $3.60 to $5.40 per gallon.
Cigarettes:
- From $1.80 to $2.40 per pack.
Casino license fees:
- From 3.5 percent to 3.75 percent on monthy gross revenue under $50,000.
- From 4.5 percent to 4.75 percent on monthly gross revenue from $50,000 to $134,000.
- From 6.75 percent to 7 percent on monthly gross revenue exceeding $134,000.
