San Francisco Mayor Gavin Newsom last week vetoed a proposed “alcohol cost recovery fee,” saying the measure would hurt the city’s economy.
Supervisor John Avalos — who sponsored the proposal aimed at raising money to cover the cost of alcohol-related problems in the city — has reportedly said he will continue to pursue the measure, possibly seeking to put it before voters as a ballot initiative in November.
His proposal would have created a mitigation fee of 35 cents per gallon of beer, $1 per gallon of wine and $3.20 per gallon of spirits for wholesalers and retailers of alcohol sold in the city.
Avalos estimated the fee would have raised the price of a drink by about 5 cents, and it would have generated about $15 million per year that could be directed toward unreimbursed city expenses, such as ambulance transportation for inebriated city residents, hospital and clinic services for alcohol-related diseases for the uninsured, as well as combating alcoholism.
Though the measure was aggressively opposed by the city's hospitality industry, the board of supervisors approved the proposal in a 6-3 vote on Sept. 21. Later that day, however, it was vetoed by Newsom, who is a former restaurateur and the co-owner of a Napa Valley winery.
“In this economy, I fundamentally believe that we need to be encouraging local businesses — large and small — to continue to work and operate in our neighborhoods, to continue to provide jobs and security to the residents of San Francisco, and to continue to support our city’s economy in its recovery," Newsom said in a veto letter to the board. "It is in these times of struggle that we need to stimulate our local economy — not pursue policies that will stifle growth and put our county at a competitive disadvantage with every other county in California.”
Contact Lisa Jennings at [email protected].
