Hawai’i Free Press:
How High are Beer Taxes in Your State?
by Janelle Cammenga, Tax Foundation, June 5, 2019
’Tis the season to crack open a cold one, whether it’s at a cookout, at an all-American baseball game, or on a tubing trip down a slow-moving river. In the midst of summer’s usual uptick in beer sales, how much of our cash is actually going toward the cost of a brew? Less than you might think.
According to the Beer Institute, “Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.” Research has shown that approximately 40 percent of the retail price of beer is dedicated toward covering all the applicable taxes.
The United States collects an excise tax on beer at the federal level (ranging from $0.11 to $0.58 per gallon based on production, location, and quantity), but all 50 states and the District of Columbia also collect their own taxes on fermented malt beverages. While general sales taxes are tacked on after the price of goods is subtotaled, most states go straight to the retailer for beer excise taxes, collecting according to the quantity of beer sold (usually expressed as a rate of dollars per gallon). Although you can’t see the taxes on your receipt, vendors pass along those costs to consumers in the form of higher prices.
While a state’s excise tax on beer is usually levied on retail sales, some collection variations exist from state to state. For instance, some states levy taxes further up the supply chain by taxing brewers, importers, or other wholesalers at a percentage of revenue generated or at a fixed price per gallon, bottle, or case of beer sold. Many states also generate revenue by collecting license fees from beer distributors. read more
…beer tax is probably not important to Hawaiians, they mostly smoke pot 24/7/365, or at least they sure VOTE like they do…
…which brings us back to my theory that “nice weather makes people do stupid things”. Check EVERYPLACE with reliably nice weather, and let me know if you find ONE where this isn’t true…
First they drive you to drink, then they tax the booze.
Homebrew is so much better in a variety of ways.
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Looks like I’ll be driving to Colorado for beer from now on – – and it has a higher alcohol content.
If I remember correctly, isn’t it similar for gasoline? We, the end use consumer, pay a very high tax rate in FedGov, state, local, and road taxes on every gallon of gas. It would be interesting to find out ALL the taxes imposed on a gallon of gas, from oil well, through the pipeline, the refinery, and ending at the pump.
@ Billy Fuster JUNE 9, 2019 AT 3:46 PM
“Looks like I’ll be driving to Colorado for beer from now on – – and it has a higher alcohol content.”
From HAWAII?????
Had some friends move to Hawaii a few Years back…They put pics up on
FB , and I was like holy crap You guys lost some weight…Turns out
it’s too expensive to drink Beer even at Home…So everybody smokes
weed instead.
Surprisingly low beer taxes in most liberal states, but high in many conservative states (except Texas). Since libs are always looking to increase tax revenue, how long before they start jacking these rates up?
Try Toronto!24 beers
Ontario, Canada: $23 before tax (hidden) $45 out the door!
Grey Goose 750ml (26oz) $51.00 out the door
@RickeyG – Well, WY and MO are pretty conservative and they are .02 and .06 respectively.
What stands out is TN. I guess they want their people to drink Jack Daniels instead (except in the county where it’s actually made).
BFH, it’s time you explained the picture and its relation to “Vagina Beer.” I’m too shy to ask MJA.
By the way, asking for a friend.
I Know!
Have you seen what they charge tax on SPAM now?,,,
Neither have I, just wanted to get into some discourse,,
feeling more warm and fuzzy now,,
Best to all IOTW Breather-en
Kona Brewing makes good beer. It’s expensive, I wonder if we are paying Hawaii beer tax here on the mainland.
@ Blue Goof
Looks like “Vagina Beer” will remain one of the great mysteries of life. 🙁