New York lawmakers have proposed an alcohol tax to fund statewide addiction treatment programs.
New York lawmakers are considering adding a liquor tax as a new way to pay for addiction care as the state makes it easier to buy alcohol. Over the past few years, statewide alcohol laws have loosened. Drinks can now be ordered from restaurants, wine can be shipped directly to homes, movie theaters can sell beer and wine, and lawmakers are still debating whether grocery stores should be allowed to sell alcohol. As access continues to grow, some state leaders say it’s time to directly address the harm that often occurs after drinking.
State Sen. Nathalia Fernandez has introduced three bills aimed at generating stable funding for substance abuse treatment, education and recovery programs. Together, the bills would impose a 5 percent tax on retail alcohol sales and transfer money from existing opioid taxes to a fund that can only be used for addiction services. Fernandez describes the effort as the Super Initiative, short for substance abuse prevention, education and recovery.
The proposal comes at a time of uncertainty for treatment providers. Federal funding for behavioral health programs has been volatile, with repeated efforts in recent months to reduce Medicaid costs associated with addiction and mental health care. Although the courts stepped in to block some of these efforts, New York providers were unsure whether funding would continue. State leaders say it further makes it clear that relying too heavily on federal dollars threatens critical services.
Proponents of the bills argue that New York already pays drug-related taxes to other industries and uses that money to deal with related harm. When the state legalized gambling and cannabis, lawmakers earmarked portions of tax revenue for gambling programs and substance abuse treatment. Alcohol, despite being the most abused substance in the state, currently does not send any of its tax revenue directly to treatment.
Health statistics highlight the scale of the problem. According to state health officials, binge drinking is linked to more than 8,000 deaths in New York each year. Nationwide, alcohol plays a role in an estimated 178,000 deaths each year. These include liver disease, alcohol poisoning, accidents and long-term health problems made worse by drinking. Despite this impact, treatment programs often struggle to meet demand, particularly in rural and low-income areas.
One of Fernandez’s bills would redirect money from the current opioid excise tax to the state’s drug treatment and public education fund. The tax was created to hold drug companies accountable for their role in the opioid crisis, but the revenue currently goes into the state’s general budget. Another bill would create a new alcohol excise tax, with all money going into a single fund. A third bill would expand how the fund can be used, allowing for harm reduction services, recovery centers, peer programs and support for growing concerns such as gambling addiction.
Addiction policy experts say there are cases for dedicated funds. When money is kept in the general budget, it can be moved to cover unrelated expenses during tight budget years. Conversely, a lock-in fund helps ensure that treatment programs can stay open and staff can be paid, even when other areas face cuts. Advocates say that stability can mean the difference between someone getting help or being placed on a long waiting list.
The proposal is not without its critics. Alcohol industry groups are expected to push back against a new tax, warning it could hurt sales or small businesses. Others raise concerns about fairness, noting that sales taxes take a large share of revenue for low-wage earners. A 5 percent increase in the register could be felt more quickly by households already struggling to meet basic expenses.
Proponents respond that alcohol has become more affordable and convenient over time, including through delivery services and discount prices. They argue that the additional tax is small compared to the social and medical costs associated with untreated addiction. Lawmakers supporting the bills say the goal is not to punish consumers, but to recognize that broader access comes with responsibility.
Fernandez plans to push for the bills to be included in the state budget, which is due in early April but is often finalized later. As New York continues to expand when and where alcohol can be sold, the debate highlights a big question facing the state: How to balance convenience and choice with the true human cost of addiction, and who should pay to fix it.
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New York lawmakers propose alcohol tax to treat addiction
New York proposes alcohol, opioid tax to treat addiction
