Of the nearly 14 million people each year in the United States who could benefit from treatment for alcohol problems, only 2-3 million get the care they need. Surveys show that there is significant popular support for dedicating state funds to treatment programs as one way to expand services for people with alcohol problems and their families.

People with alcoholism suffer from a chronic illness that can be treated, much like diabetes, asthma and high blood pressure. Untreated alcohol problems result in untold damage to families and society, as well as higher health care costs and significant loss of productivity. A number of obstacles, including health insurance restrictions or complete lack of coverage, limit the availability and affordability of treatment. But a wide variety of treatment opportunities need to be available in order to effectively address this health crisis.

In a 1997 national survey funded by the Robert Wood Johnson Foundation, 82 percent of adults favored an increase of five cents per drink in the tax on beer, wine and liquor to pay for programs to prevent minors from drinking and expand alcohol treatment programs. According to a 2002 American Association of Retired Persons (AARP) survey, eight in ten North Carolinians support an additional tax on beer, wine and other alcoholic beverages in their state to generate money for health and long-term care services.

All 50 states and the District of Columbia levy some type of tax on alcoholic beverages. Only ten states use the tax revenues or other revenues from alcohol sales to fund badly needed alcohol treatment programs (see chart). Fifteen other states earmark (or dedicate) the revenues generated from alcohol sales to support programs in education, corrections, tourism promotion and other areas, or simply to supplement the budgets of the state, counties or municipalities.

To support their state's Alcohol Treatment and Rehabilitation Fund, Mississippians pay not only an excise tax on alcohol, but also a three percent markup on all alcoholic beverage purchases. Alcohol excise taxes are based on the type of beverage and its level of alcohol content, not on the dollar value or sales price. For example, state excise taxes on wine, beer, and distilled spirits are frequently levied at different rates.

States with Alcohol Excise Taxes Dedicated to Treatment of Alcohol Problems

Arizona - Drug and Alcohol Treatment Fund

Idaho - Alcoholism Treatment Account

Kansas - Community Alcoholism and Intoxication Programs Fun

Mississippi - Alcoholism Treatment and Rehabilitation Fund

Montana - Treatment, rehabilitation, and prevention of alcoholism and chemical dependency.

New Jersey - Alcohol Education, Rehabilitation and Enforcement Fund

Nevada - Increase services for prevention and treatment of alcoholism and alcohol abuse.

Oregon - Mental Health Alcoholism and Drug Services Account

Tennessee - To assist municipalities and counties in carrying out the provisions of the state's 1973 Comprehensive Alcohol and Drug Treatment Act

Utah - Programs or projects related to prevention, treatment, detection, and prosecution.

Source: Various state statutes/codes

The high social and economic costs of untreated alcohol problems are motivating citizens and policymakers to explore the use of alcohol tax revenues as a source of funding for much-needed treatment programs in many more states. Ensuring Solutions to Alcohol Problems at www.ensuringsolutions.org offers numerous resources on alcohol problems and their impact.

Sources: Center for Science in the Public Interest. 2003. Increasing Alcohol Taxes to Fund Programs to Prevent and Treat Youth-Related Alcohol Problems (Strategizer Technical Assistance Manual #37). Developed by the Community Anti-Drug Coalitions of America (CADCA), in collaboration with the Center for Science in the Public Interest (CSPI), to guide community coalitions working to reduce alcohol-related problems. Available from the World Wide Web: http://www.cspinet.org/booze/taxguide/TaxIndex.htm.

Fiscal Planning Services Inc. 2002. Dedicated State Tax Revenues: A Fifty-State Report. Bethesda, MD. Available from the World Wide Web: http://www.ncsl.org/programs/fiscal/pmtaxrev.pdf.

Harwood, E. M., Wagenaar, A. C., & Zander, K. M. (1998). Youth Access to Alcohol Survey: Summary Report. Princeton, NJ: Robert Wood Johnson Foundation. Available from the World Wide Web: http://www.rwjf.org/publications/publicationsPdfs/Youth_Access_to_Alcohol_Survey.pdf.

National Institute on Alcohol Abuse and Alcoholism. 1998. Drinking in the United States: Main Findings from the 1992 National Longitudinal Alcohol Epidemiologic Survey. Washington, DC: Department of Health and Human Services, Public Health Service, National Institutes of Health.

Substance Abuse and Mental Health Services Administration. 2002. National Household Survey on Drug Abuse, 2001. Washington, DC: Department of Health and Human Services.

May 2003, Revised June 2003