How High Are Beer Taxes in Your State?

With summer quickly approaching, we can expect to see a seasonal uptick in beer sales, thanks to much-anticipated barbecues, baseball games, and the like. But when we fork over cash to buy yet another six-pack, how much is being used to cover the expense of brewing the beer itself? Less than one 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. In addition to the federal excise tax on beer (which ranges from $0.11 to $0.58 per gallon based on production, location, and quantity), all fifty states and the District of Columbia collect their own tax on fermented malt beverages. Unlike general sales taxes, which are tacked on after the price of goods is subtotaled, most states collect beer excise taxes from retailers according…

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