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Mass. Voters Repeal Sales Tax On Alcohol

Massachusetts voters have repealed the 6.25 percent sales tax on alcohol.

Package store owners claimed the tax — first imposed in August 2009 — was driving many customers north of the border to tax-free New Hampshire. Question 1 supporters also argued that Massachusetts already slapped an excise tax on alcohol.

Opponents said repealing the tax would cut millions of dollars from community-based programs that treat alcoholism and substance abuse. They also said most other states impose both a sales tax and an excise tax on liquor.

State revenue officials said the alcohol sales tax had been projected to bring in $110 million in the current fiscal year.

The liquor industry raised nearly $2 million this year to fight for repeal of the tax.

This program aired on November 3, 2010. The audio for this program is not available.

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