Federation of Tax Administrators (FTA) finally updated (May 2010) the State Tax Rates on Distilled Spirits from 2008. They skipped 2009 due to a lack of funding. How ironic that the federation of tax administrators have a lack of funds? To top it all off, the FTA doesn’t even keep historical records. They just erase the work they do each year and overwrite everything on the internet. Stupid! (yet so many people are shocked that the USA is going bankrupt)
2010 State Excise Tax Rates Highlights:
Highest Tax: All 18 Control States. These states have a monopoly over distribution and/or retail. There are so many hidden taxes that the consumer does not know about.
For example, the State of Michigan charges a 65% tax on all alcohol. Michigan controls the retailers pricing too. They only allow a 17.5% markup (14% margin). Michigan liquor stores have a tough time surviving on such low margins, if they raise their prices from the state minimum, the liquor store will most likely lose customers and revenue from the competition close by.
Highest Tax (Non-Control States):
ALASKA $2.56 per 750ML.
Lowest Tax (Non-Control States):
Washington, D.C. $0.30 per 750ML.
U.S. Median Tax:
$0.75 per 750ML.
Penny Pincher State:
MINNESOTA $1.01 per 750ML
$0.01/bottle tax (except 50ML bottles)
Don’t forget that the Federal Government charges a Federal Excise tax of $2.14 per 750ML bottle of 40% (80 proof) spirits. This is built into the retail price. The final retail price of liquor is taxed again with the State Sales Tax (which is different from State Excise Tax).
Here is the complete list: State Liquor Taxes, USA – 2010