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SD 741

An Act relative to a local option excise on the sale of alcoholic beverages for municipal substance abuse prevention and public health programs

194th Legislature (2025-2026) Introduced by Cynthia Creem

Summary of SD 741: Local Option Excise on Alcohol Sales OverviewThis proposed bill would give Massachusetts municipalities the option to implement a local excise tax on the sale of

House concurred
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Bill Summary · SD 741

Summary of SD 741: Local Option Excise on Alcohol Sales

Overview

This proposed bill would give Massachusetts municipalities the option to implement a local excise tax on the sale of alcoholic beverages. The revenue generated from this tax would be dedicated to funding substance abuse prevention and public health programs within that local community.

Key Provisions

  • Allows cities and towns across Massachusetts to adopt a local excise tax of up to 2% on retail sales of alcoholic beverages
  • Mandates that all revenue from this local excise tax must be used to support substance abuse prevention efforts and public health initiatives within that municipality
  • Requires cities and towns to hold a local referendum before implementing the excise tax option
  • Specifies that the excise tax would apply to all sales of beer, wine, and spirits by licensed retailers, including package stores and on-premises establishments

Potential Impact

  • Provides new funding source for cash-strapped municipal substance abuse and public health programs
  • May incentivize more local investment in addiction treatment, mental health support, and community wellness initiatives
  • Could increase costs for consumers purchasing alcohol in municipalities that adopt the local excise tax
  • May face opposition from liquor retailers and industry groups concerned about added tax burden

Timeline and Next Steps

  • The bill has been approved by the state Senate and is currently under consideration in the House of Representatives
  • If passed by the legislature, the bill would then go to the Governor's desk for potential signature into law
  • Upon enactment, cities and towns would have the option to hold local votes to implement the new excise tax at their discretion

Overall, SD 741 aims to empower Massachusetts municipalities to raise dedicated funding for substance abuse prevention and public health services through a local tax on alcohol sales. The bill's outcome could have significant implications for how communities address growing addiction and public health challenges.

Compiled from official sources — confirm details with the bill’s official record.

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