Thursday, May 3, 2012

California court rejects higher tax on 'alcopops'

California court rejects higher tax on 'alcopops'

Published: Thursday, May. 3, 2012 - 12:00 am | Page 4A
Last Modified: Thursday, May. 3, 2012 - 8:25 am
The California Board of Equalization overstepped five years ago when it voted to tax flavored malt beverages, known popularly as "alcopops," as hard liquor instead of beer, a state appellate court has ruled.

The Sacramento-based 3rd District Court of Appeal, in a decision released Monday, described the bottled drinks, such as Mike's Hard Lemonade and Smirnoff Ice, as "hybrids" of beer and distilled spirits but based its decision on a state agency's classification of them as beer.

The difference in taxation is immense. California taxes beer at 20 cents a gallon but hard liquor at $3.30 per gallon.