The Future of New York Wine
Daily Messenger wine writer Ron Reals has a fascinating article up on MPNNow.com about Gov. David Paterson's proposed budget for next year and how it will effect the New York wine industry. For those of you who don't live in New York, I'll give a brief synopsis of what's been going on in Rochester.
Basically, the state faces a 15 BILLION dollar deficit, and the governor has proposed a wide-sweeping array of changes and taxes to address the issue. Among them, increased tax on wine sales, allowing grocery stores to sell vino and cutting funding to the New York Wine and Grape foundation. If the budget goes through as-is, it could have a tremendous impact on the industry as a whole. Reals breaks down a number of pros and cons of the proposal, and I think it's pretty well done. Follow the link for full details, but here's a bit of it in the meantime.
"The aspect that intrigues me about the proposal is that it always seems to be predicated upon being beneficial to New York wineries. I disagree to a point. It probably would be helpful to the grape growers and some larger wineries. But it would likely not help most smaller “farm” wineries, which don’t have the production to support grocery distribution. Couple that with the increase in excise tax to these smaller players and we could be looking at a crippling effect. Our current system has been in effect for 75 years and liquor store owners see no reason to change it."
Basically, the state faces a 15 BILLION dollar deficit, and the governor has proposed a wide-sweeping array of changes and taxes to address the issue. Among them, increased tax on wine sales, allowing grocery stores to sell vino and cutting funding to the New York Wine and Grape foundation. If the budget goes through as-is, it could have a tremendous impact on the industry as a whole. Reals breaks down a number of pros and cons of the proposal, and I think it's pretty well done. Follow the link for full details, but here's a bit of it in the meantime.
"The aspect that intrigues me about the proposal is that it always seems to be predicated upon being beneficial to New York wineries. I disagree to a point. It probably would be helpful to the grape growers and some larger wineries. But it would likely not help most smaller “farm” wineries, which don’t have the production to support grocery distribution. Couple that with the increase in excise tax to these smaller players and we could be looking at a crippling effect. Our current system has been in effect for 75 years and liquor store owners see no reason to change it."
posted by My Wine News | 8:31 AM
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