Many states also generate revenue by collecting license fees from beer distributors.īecause beer taxes are often collected at earlier points in the supply chain, the only tax a consumer will see printed on his or her receipt is any applicable state or local sales tax that applies to the purchase. 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. While a state’s excise tax on beer is usually levied on retail sales, some collection variations exist from state to state. Although you can’t see the taxes on your receipt, vendors pass along those costs to consumers in the form of higher prices. 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). 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. 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.Īccording 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. ’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.
0 kommentar(er)
