Alcohol Beverages Taxes

Wine

Laws specifying the two major types of taxes levied on wine – “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.

Policy Topics

View another policy topic by selecting an option from the following menu.

Variables: Wine

  1. Control
    • A State is classified as a Control State if the State sets the price of and gains profit/revenue directly (rather than solely from taxation) from the wholesale or retail system of distribution for the index beverage (12% ABV wine). No tax data are provided for States coded as control (see Policy Description).
  2. Specific Excise Tax Per Gallon for 12% ABV
    • The specific excise tax (see Definitions) levied on wine of 12% ABV.
  3. Ad Valorem Excise Tax – On-Premises for 12% ABV
    • Wholesale Tax Rate – The wholesale on-premises ad valorem excise tax (see Definitions) levied on wine of 12% ABV.
    • Retail Tax Rate – The retail on-premises ad valorem excise tax (see Definitions) levied on wine of 12% ABV.
    • Sales Tax DOES NOT Apply – If checked, sales tax does not apply to wine.  If blank, then: (1) sales tax applies if the jurisdiction levies a retail ad valorem excise tax on the index beverage; or (2) if the jurisdiction does not levy a retail ad valorem excise tax on the index beverage, then APIS did not research the applicability of sales tax on the index beverage in that jurisdiction.
    • Sales Tax Rate – The sales tax rate is provided only in those States in which: (1) a sales tax does not apply to wine; and (2) an ad valorem excise tax does apply to wine.
    • Sales Tax Adjusted Retail Ad Valorem Excise Tax Rate – The retail ad valorem tax on wine minus the sales tax. Applies only to States in which sales tax does not apply to wine (see Policy Description for further discussion of this variable).
    • NOTE: Although not all States impose a tax on sales of goods and services generally, analyses conducted by APIS suggest that these general sales taxes may be a substantial contributor to the total tax imposed on alcoholic beverages in the States that do impose a sales tax. At this time, APIS is only able to provide the sales tax rate for those States in which (a) a sales tax does not apply to an alcoholic beverage, and (b) an ad valorem excise tax does apply to that beverage. Sales taxes are included in these cases so that the “sales tax adjusted retail ad valorem tax rate” can be calculated. APIS is not currently able to display a change in sales tax (nor an exemption from sales tax) on a beverage in a State which does not impose an ad valorem excise tax on that beverage. For example, a State without an ad valorem alcoholic beverage tax might enact legislation that reduces the State sales tax as it applies to alcoholic beverages, or that exempts alcoholic beverages from the State sales tax. APIS does not include such legislation. Researchers wishing to include sales tax in analyses of alcohol economic availability can find useful State-level data from the following sources: 
      http://taxfoundation.org/article/state-and-local-sales-tax-rates-midyear-2013http://www.salestaxinstitute.com/resources/rates
  4. Ad Valorem Excise Tax – Off-Premises for 12% ABV
    • Wholesale Tax Rate – The wholesale off-premises ad valorem excise tax (see Definitions) levied on wine of 12% ABV.
    • Retail Tax Rate – The retail off-premises ad valorem excise tax (see Definitions) levied on wine of 12% ABV.
    • Sales Tax DOES NOT Apply – If checked, sales tax does not apply to wine.  If blank, then: (1) sales tax applies if the jurisdiction levies a retail ad valorem excise tax on the index beverage; or (2) if the jurisdiction does not levy a retail ad valorem excise tax on the index beverage, then APIS did not research the applicability of sales tax on the index beverage in that jurisdiction.
    • Sales Tax Rate – The sales tax rate is provided only in those States in which: (1) a sales tax does not apply to wine; and (2) an ad valorem excise tax does apply to wine.
    • Sales Tax Adjusted Retail Ad Valorem Excise Tax Rate – The retail ad valorem tax on wine minus the sales tax. Applies only to States in which sales tax does not apply to wine (see Policy Description for further discussion of this variable).
    • NOTE: Although not all States impose a tax on sales of goods and services generally, analyses conducted by APIS suggest that these general sales taxes may be a substantial contributor to the total tax imposed on alcoholic beverages in the States that do impose a sales tax. At this time, APIS is only able to provide the sales tax rate for those States in which (a) a sales tax does not apply to an alcoholic beverage, and (b) an ad valorem excise tax does apply to that beverage. Sales taxes are included in these cases so that the “sales tax adjusted retail ad valorem tax rate” can be calculated. APIS is not currently able to display a change in sales tax (nor an exemption from sales tax) on a beverage in a State which does not impose an ad valorem excise tax on that beverage. For example, a State without an ad valorem alcoholic beverage tax might enact legislation that reduces the State sales tax as it applies to alcoholic beverages, or that exempts alcoholic beverages from the State sales tax. APIS does not include such legislation. Researchers wishing to include sales tax in analyses of alcohol economic availability can find useful State-level data from the following sources: 
      http://taxfoundation.org/article/state-and-local-sales-tax-rates-midyear-2013 ; http://www.salestaxinstitute.com/resources/rates
  5. Additional Taxes for Wine 6-14% ABV
    • Tax rates for commonly available wines of strengths other than 12% ABV.