By SUSAN M. COVER
Staff Writer Wednesday, April 25, 2007

The tax, repealed by lawmakers in 2000, would apply to items beyond junk food, she said.

Preferring to call it a food tax, she said many families rely on quick snacks to keep their children full.

"Eating is not a choice," said Davis, who runs Crossroads Ministries Food Pantry in Old Town. "It's something we have to do."

Davis is a member of the Don't Tax Food Coalition of Maine, which includes farmers, anti-hunger advocates, vending machine companies and the Grocery Manufacturers Association, which represents the world's leading food, beverage and consumer products companies.

The group came to the Statehouse at a time when the Legislature's Taxation Committee is trying to put together a comprehensive tax reform package. One of the options under consideration is applying the 5 percent sales tax to many foods considered snacks, such as potato chips, cheese puffs, cakes, pies and ice cream.

Taxation Committee Chairman Sen. Joe Perry, D-Bangor, said they are targeting unhealthy food and discretionary spending. "It will be an important part of comprehensive tax reform," he said.

But opponents of the snack tax say it includes many foods that aren't unhealthy, including granola bars, roasted nuts, frozen yogurt and ready-to-eat pudding and gelatins.

While a group opposing the expansion of taxes came to the Capitol Tuesday, a separate group supporting a new tax on alcohol will be there today.

The Maine Association of Substance Abuse Programs, Attorney General Steven Rowe, and police officers are supporting the "dime a drink" tax.

The tax would apply to all alcoholic beverages and is estimated to come out to about 10 cents per drink. In other words, a bottle of wine, which may have five portions in it, would cost about 50 cents more, said Malory Shaughnessy, coordinator for the Maine Association of Prevention Programs.

"It's a pretty minimal increase and it creates a lot of money to alleviate problems of alcohol in our communities," she said.

The increase is estimated to generate $45 million, 25 percent of which would go to prevention and treatment programs, 5 percent to after-school programs and 70 percent to liquor enforcement and property tax relief, she said.

Currently, $7 million goes to prevention and treatment programs, which leaves 400 people on a waiting list for services, she said.

The Taxation Committee will hold a public hearing on the bill, sponsored by Rep. Chris Barstow, D-Gorham, at 1 p.m. today.

Perry said the committee is in the process of putting together a comprehensive tax relief program that includes tax increases in some areas and reductions in others.

"We want to collect more sales tax on items that are highly exportable or discretionary spending, and use all the money to reduce income and property taxes paid by hard-working Maine residents," he said.

Perry said he worked to repeal the snack tax in 2000. But now, he said he believes he was on the wrong side of the issue.

The Legislature repealed the snack tax partly because 50,000 people signed a petition to try to put the issue before voters, said Jim Mitchell, a lobbyist for the Don't Tax Food Coalition of Maine.

"The problem with the tax is that it's confusing, arbitrary and very regressive," Mitchell said. "On top of that, they are very, very unpopular."

The tax is confusing because it's not easy for shoppers in a grocery store to know which item is taxed and which is not, he said.

For example, bagels and English muffins are considered grocery staples, and would not be taxed. But donuts, pastries, and croissants would be taxed, under the proposal currently being considered.

Exeter farmer Jim Crane, a third-generation potato grower, said all of his potatoes go to Frito-Lay.

A tax on potato chips would hurt Frito-Lay and, thus, his farm, he said.

"The only way I can grow my business as a farmer is to sell more to Frito-Lay," he said. "It's a big deal for farmers in the state of Maine."

Susan Cover -- 623-1056

scover@centralmaine.com