Legislative Leaders Leery Of Soda Tax, Wine in Supermarkets

Posted by: Joseph Spector - Posted in Uncategorized on Mar 16, 2010

Gov. David Paterson’s proposal to allow grocery stores to sell wine and to tax sugary beverages appears to be facing an uphill climb among legislative leaders.

Assembly Speaker Sheldon Silver, D-Manhattan, said this afternoon that “I don’t think there is a lot of support” for either measure, even as groups supporting wine in grocery stores rallied at the state Capitol today.

Senate Democratic Leader John Sampson, D-Brooklyn, was even more emphatic, saying his conference is looking at even deeper cuts that Paterson has proposed and said “As I’ve indicated and my position has always been, no new fees and no new taxes.”

Last week, a number of Senate Democrats came out against the sugary drink tax, pretty much putting an end to the proposal.

If the two proposals are nixed, that would mean about $700 million in revenue lost that Paterson predicted would come into the state’s coffers in the 2010-11 fiscal year, which starts April 1.

Another $218 million is estimated in revenue from increasing the tax on cigarettes $1 a pack, from $2.75 a pack to $3.75 a pack—the highest cigarette tax in the nation.

Silver also said it was unclear whether that measure would be supported by the conference. But Silver warned that budget negotiations are ongoing. Sampson and Silver met with Paterson at the governor’s mansion earlier today.

Assemblyman Joseph Morelle, D-Irondequoit, Monroe County, said he hoped the wine in grocery stores proposal wasn’t dead. Morelle sponsored legislation last year that is similar to the bill submitted by Paterson this year.

“Clearly last year there was very minimal support,” Morelle said. “I think it’s growing. I continue to support it because I think it’s the right thing to do in terms of what consumers want and it’s the right thing economically for the state.”

Paterson said earlier today that he’s laid out his proposals to close the state’s $9.2 billion budget gap, and now it’s lawmakers turn. He said he would expect that 75 percent of the deficit-closing plan come through spending cuts.