Alcohol Beverages Taxes

Beer

Laws specifying the two major types of taxes levied on beer – “specific excise taxes” (taxes levied on the quantity of a beverage) and “ad valorem excise taxes” (taxes levied on the price of a beverage).

Users familiar with the previous APIS analysis of Alcohol Beverages Taxes (2003-2007) are strongly advised to review the information under the "About This Policy" tab and the "Variables” tab. There have been important changes in the ways that variables are defined, the data included and excluded, and the assumptions underlying the APIS analysis of this policy topic.

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Jurisdiction Policies as of Control Specific Excise Tax Per Gallon for 5% Alcohol Ad Valorem Excise Tax On-Premises for 5% Alcohol Ad Valorem Excise Tax Off-Premises for 5% Alcohol Additional Taxes for 3.2-6% Alcohol Citations
Wholesale Tax Rate Retail Tax Rate Sales Tax DOES NOT Apply Sales Tax Rate Sales Tax Adjusted Retail Ad Valorem Rate Wholesale Tax Rate Retail Tax Rate Sales Tax DOES NOT Apply Sales Tax Rate Sales Tax Adjusted Retail Ad Valorem Rate
Alabama (468)
1/1/2020 $1.05          3 Citations
Alaska (465)
1/1/2020 $1.07          2 Citations
Arizona (466)
1/1/2020 $0.16          2 Citations
Arkansas (469)
1/1/2020 $0.24      1.00%  1.00%11 Citations
California (417)
1/1/2020 $0.20          4 Citations
Colorado (418)
1/1/2020 $0.08          3 Citations
Connecticut (419)

Connecticut imposes a tax of $7.20 per barrel, defined as “not less than twenty-eight nor more than thirty-one gallons,” and $0.24 per wine gallon or fraction thereof on quantities less than a quarter barrel. APIS reports the tax rate on 12 oz. bottles and therefore displays the rate as $0.24 per gallon.

1/1/2020 $0.24          3 Citations
Delaware (421)
1/1/2020 $0.26          3 Citations
District of Columbia (4106)
1/1/2020 $0.09 10.00%Yes6.00%4.00% 10.25%Yes6.00%4.25%7 Citations
Florida (422)

Florida previously imposed a surcharge of 1.34 cents on each 12 ounces of beer sold at retail for consumption on premises. This surcharge was repealed as of July 1, 2007.

1/1/2020 $0.48          3 Citations
Georgia (423)

$0.32 per gallon for malt beverages sold in barrels or bulk containers containing not more than 31 gallons, and $0.39 per gallon on barrels or bulk containers of 15.5 gallons or less.

1/1/2020 $1.01          3 Citations
Hawaii (424)

$0.54 per gallon for containers of 7 gallons or more.

1/1/2020 $0.93          2 Citations
Idaho (425)
1/1/2020 $0.15          

$0.45 per gallon applies to beer over 5% alcohol. Beer with 5% or less alcohol is sold by license. Beer greater than 5% but less than 7.5% alcohol is sold by both license and the state.

4 Citations
Illinois (426)
1/1/2020 $0.23          5 Citations
Indiana (463)
1/1/2020 $0.12          3 Citations
Iowa (427)
1/1/2020 $0.19          3 Citations
Kansas (473)

Before April 1, 2019, sales of beer containing not more than 4 percent alcohol by retailers holding only a cereal malt beverage (CMB) license were subject only to sales tax (in lieu of the 8% Enforcement Tax). The 10% Liquor Drink Tax was not due on beer containing not more than 4 percent alcohol sold by those holding only a CMB license; however, holders of alcoholic liquor licenses had to collect and remit the 10% Liquor Drink Tax on sales of beer containing not more than 4 percent alcohol but were not required to collect sales tax. Beginning on April 1, 2019, sales of beer containing not more than 6 percent alcohol by retailers holding a cereal malt beverage (CMB) license are subject only to applicable sales tax (in lieu of the 8% Enforcement Tax). The 10% Liquor Drink Tax is now due on all cereal malt beverages and beer sold by alcoholic liquor licenses.

1/1/2020 $0.188.00%10.00%Yes6.50%3.50% 8.00%Yes6.50%1.50%10 Citations
Kentucky (4110)
1/1/2020 $0.0810.00%    10.00%    7 Citations
Louisiana (430)
1/1/2020 $0.40          3 Citations
Maine (431)
1/1/2020 $0.35 8.00%Yes5.50%2.50%     5 Citations
Maryland (432)

For the period January 1, 2003 through January 2, 2008, a 5 percent general sales tax applied to alcoholic beverages, and no specific ad valorem tax applied to alcoholic beverages. For the period January 3, 2008 through June 30, 2011, a 6 percent general sales tax applied to alcoholic beverages, and no specific ad valorem tax applied to alcoholic beverages. For the period beginning July 1, 2011 a 9 percent ad valorem tax on alcoholic beverages applies, in lieu of the 6 percent general sales tax. See Md. Ann. Code, Tax - General, § 11-104(a), (g) (as amended by 2007 Md. Laws 1st Sp. Sess. Ch. 6, 2011 Md. Laws 571, and 2011 Md. Laws 572).

1/1/2020 $0.09 9.00%Yes6.00%3.00% 9.00%Yes6.00%3.00%5 Citations
Massachusetts (461)
1/1/2020 $0.11          2 Citations
Michigan (433)
1/1/2020 $0.20          2 Citations
Minnesota (434)

With respect to malt liquor containing 4 percent alcohol or less, the 2.5% Retail Tax is only applied when sold at an on-sale or off-sale municipal liquor store or other establishment licensed to sell any type of intoxicating liquor.

1/1/2020 $0.15 2.50%  2.50% 2.50%  2.50%

$0.08 per gallon for beverages containing an alcohol content of 4% or less.

7 Citations
Mississippi (435)
1/1/2020 $0.43          3 Citations
Missouri (436)
1/1/2020 $0.06          4 Citations
Montana (437)

For the period January 1, 2004 through September 30, 2017, the reported tax rate is for brewers who produce more than 20,000 barrels of beer per year. For the period beginning October 1, 2017, the reported tax rate is for brewers who produce more than 10,000 barrels of beer per year. See Mont. Code Ann. § 16-1-406(1) (as amended by 2017 Montana Laws Ch. 271).

1/1/2020 $0.14          3 Citations
Nebraska (438)
1/1/2020 $0.31          5 Citations
Nevada (439)
1/1/2020 $0.16          4 Citations
New Hampshire (440)
1/1/2020 $0.30          3 Citations
New Jersey (441)
1/1/2020 $0.12          3 Citations
New Mexico (442)
1/1/2020 $0.41          2 Citations
New York (443)
1/1/2020 $0.14          3 Citations
North Carolina (444)
1/1/2020 $0.62          4 Citations
North Dakota (445)

Beer in bulk containers is taxed at $0.08 per gallon.

1/1/2020 $0.16 7.00%Yes5.00%2.00% 7.00%Yes5.00%2.00%9 Citations
Ohio (446)
1/1/2020 $0.18          4 Citations
Oklahoma (4144)
1/1/2020 $0.40 13.50%  13.50%     4 Citations
Oregon (448)
1/1/2020 $0.08          2 Citations
Pennsylvania (449)
1/1/2020 $0.08          5 Citations
Rhode Island (450)
1/1/2020 $0.11          3 Citations
South Carolina (462)
1/1/2020 $0.77          5 Citations
South Dakota (451)
1/1/2020 $0.27          3 Citations
Tennessee (452)
1/1/2020 $1.29          11 Citations
Texas (453)

In Texas, holders of a wine and beer retailer's permit or a beer retail dealer's license are subject to the State sales tax rate of 6.25% rather than the Ad Valorem Excise Tax On-Premises rates.

1/1/2020 $0.19 14.95%Yes6.25%8.70%     

$0.20 per gallon for alcohol content of more than 5%.

14 Citations
Utah (454)
1/1/2020Yes           
Vermont (455)
1/1/2020 $0.27 10.00%Yes6.00%4.00%     8 Citations
Virginia (456)

Virginia imposes a tax of $0.2565 per gallon on each barrel of beer, defined as any container or vessel having a capacity of more than 43 ounces.

1/1/2020 $0.28          2 Citations
Washington (457)

APIS does not report taxes in States where the index beverage is wholly or partially sold in State-run retail stores or through State-run wholesalers. The tax rate for Washington is reported beginning on December 8, 2011, when privatization began as a result of passage of Initiative 1183.

1/1/2020 $0.76          4 Citations
West Virginia (458)
1/1/2020 $0.18          3 Citations
Wisconsin (459)
1/1/2020 $0.06          2 Citations
Wyoming (460)
1/1/2020 $0.02          2 Citations
United States (464)
1/1/2020 $0.58          2 Citations