In a move that has roused constitutional and legal concerns in California, the State Board of Equalization has voted to uphold a ruling that amounts to a huge stealth tax increase on certain alcoholic beverages.You can read the full story here.
With a vote of 3 to 2, the board raised the tax on flavored malt beverages, such as Smirnoff Ice, from 20 cents to $3.30 a gallon. They did so by changing the classification of the beverages from beer to distilled spirits.
The reclassification must be approved by the Governor's Office of Administrative Law. Should it stick, the reclassification would amount to a tax increase of 1,550%.
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