Higher tax could bring new revenue to area wineries
April 16, 2013
A state representative is backing legislation that could help promote Illinois’ wine industry.
Rep. Mike Bost, R-Murphysboro, is sponsoring a bill that would add a two-cent increase on every gallon of wine imported and exported to Illinois. The tax revenue could be used to help vineyards hire professionals to improve their wine’s quality, Bost said. It would also help showcase local wineries and advertise Illinois winemakers to neighboring states and showcase local wineries.
However, Bost said the wine tax is not new legislation.
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Indiana and Missouri passed similar bills in 1997, he said, that helped both states grow their respective wine industries. When Illinois attempted to pass a similar bill in 1997, Bost said, California lobbyists removed the Illinois wine tax from the bill to avoid profit loss for California’s wine industry.
“The California winemakers came in and lobbied against the bill and got several legislators to get the tax taken off so it would just be a line item (in other legislation),” he said. “That line item was in place until Rod Blagojevich, who did not support the Illinois wine industry, took it out.”
Bost said legislators put $500,000 a year to help start the industry until Blagojevich’s first year in office. During that time, he said, every dollar invested in the industry made nearly 17 dollars in profit.
“We made a great return from this growing industry, and you can see how it has really taken off,” he said. “Where we only used to have four wineries, we have over 130 wineries today.”
Jim Ewers, Blue Sky Vineyard part owner and general manager, said the tax increase could be huge for the wine industry, but it will face tough opposition if it is to pass.
“Honestly, I hope the bill goes through, but I don’t see it happening right now,” he said. “This fiscal year, the new director for the department of agriculture said we were just a line item in their budget, but we got his attention, and for this year we are back in the budget.”
Ewers said even though many people from both inside and outside Illinois do not know how diverse the state’s wine industry is, it is great to see people walk away from the wineries after discovering local flavors.
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“We’ll go up and do tastings, or be part of festivals up in Northern Illinois, and it is great to see their reaction, because they were not expecting Illinois wine to be anything but fruit and super sweet, and to see that we can produce high quality wines, from the dessert end to bone dry reds that are world class,” he said.
Karen Hand, a Blue Sky Winery winemaker, said she is excited to see how the wine industry can improve from the tax because the region is an excellent environment for growing all types of produce.
“I think that when you look at Illinois and what we can accomplish, if we could bring in tourism and grow this industry, that two-cent tax can only improve the industry,” she said. “The money also stays in the state.”
Bruce Morgenstern, Pheasant Hollow Winery owner and Illinois Grape Growers and Vintners Association president, said Illinois is a premiere Midwest wine producer, and the tax could improve the state’s industry.
“All (winemakers) have appreciated everything Illinois has done for us, they have been great in helping us fund our industry and getting it started, but that is just it, we have only gotten started” he said. “What is really going to put us over the top is making sure we have the right wine and advertising needed to bring Illinois the forefront,”
Bost said winemakers are making strides to perfecting their craft and the revenue the industry brings in is too positive to be ignored.
“I can say that we have definitely grown as an industry to create some recognizable wines,” he said. “I know these wineries are working hand and hand with each other, encouraging other local wineries to make the best wine possible.”
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