[Congressional Record (Bound Edition), Volume 145 (1999), Part 14]
[Extensions of Remarks]
[Page 20690]
[From the U.S. Government Publishing Office, www.gpo.gov]



  A BILL TO REPEAL THE SPECIAL OCCUPATIONAL TAX (SOT) ON THE SALE OF 
                          ALCOHOLIC BEVERAGES

                                 ______
                                 

                             HON. DAVE CAMP

                              of michigan

                    in the house of representatives

                        Thursday, August 5, 1999

  Mr. CAMP. Mr. Speaker, along with several of my colleagues on the 
Ways and Means Committee, Ms. Thurman, Mr. Nussle, Mr. Matsui, Mr. 
McInnis, and Mr. John Lewis, I am introducing a bill today to repeal 
the Special Occupational Tax (SOT) on the sale of alcoholic beverages.
  We are introducing this bill to alleviate a problem that many of our 
constituents have raised with us. I know that many of our colleagues 
have also heard from convenience store owners, innkeepers, restaurant 
owners, vintners, wholesalers and other small business owners 
complaining about the burden of the Special Occupational Tax on the 
sale of alcoholic products.
  The SOT is an annual tax imposed on all businesses that manufacture, 
distribute or sell alcohol products. Whether it's a seasonal 
restaurant, an Elks Lodge, convenience or grocery store, or even a 
campground or florist that delivers wine with flowers--no one is spared 
from the tax.
  However, it is especially burdensome for small retain stores. Over 90 
percent of all SOT revenue comes from retailers. In addition, small 
producers--especially wineries--have a difficult time meeting the 
obligations of this tax.
  A recent General Accounting Office study, which conceded that the 
alcohol industry is a heavily taxed and regulated industry already, 
illustrated the problems caused by this tax, particularly on small 
business owners. This tax is an unnecessary burden and should be 
eliminated.
  I urge all of my colleagues to join me as cosponsors on this bill to 
repeal this unfair tax on small businesses.

                          ____________________