02/23/06 No wine user fees

The Bonneville Power Administration revenue for debt payment plan proposed in the President's 2007 fiscal year budget is not the only part of that financial plan that a vast majority of Northwest lawmakers take exception to. Also in that budget is a plan within the U.S. Treasury Department budget to impose new user fees on producers, importers, and wholesalers of wines, distilled spirits, and malt beverages. HASTINGS: Generally, it was fees to aid in some of the regulatory process that are tied to that industry. But according to U.S. Representative Doc Hastings of Washington and other bi-partisan members of the Northwest House delegation, that plan would establish a floor, and not a ceiling for these new fees. HASTINGS: This applies to the regulation and to what we call viticultural areas that are designated for labeling purposes, but the bottom line is the tax increase on small wineries as they are trying to build this industry. And that is why a group of eleven Representatives recently sent a letter to Treasury Secretary John Snow opposing the plan. A similar proposal offered by the Administration last year was also rejected by Congress. HASTINGS: Ours is an emerging wine industry, our premium wines have done very, very well. But to put more fees when they're trying to build a business, this to me, doesn't seem to make much sense.