Everyone Pays Beer Taxes
Beer tax also commonly known as ‘sin tax’ is the state level taxation on beer. Every state has a beer tax and is typically calculated per gallon. Beer tax is paid by the brewer or distributor before it enters the store. This should not be confused with a state sales tax, which is paid by the customer. Ultimately, beer tax results in a higher costing product for the consumer because a per gallon tax increases brewers costs.
In the state of Connecticut there is a beer tax of $0.24 per gallon plus 6.35% sales tax. In comparison to other states Connecticut’s beer tax ranks in the middle. Washington State for example has a $0.76 per gallon beer tax plus a 6.5% sales tax, which ranks them as one of the highest beer tax states in the nation. New Jersey, however has a $0.12 per gallon beer tax and a 7% sales tax placing them as one of the lowest beer tax states.
There is a national movement to lower beer taxes in the USA because regional and craft breweries are small businesses, which employ middle class workers. US Representatives Tom Latham R-Iowa and Ron Kind D-Wis are proposing the Brewers Excise and Economic Relief Act of 2013 (BEER Act). They plan to reduce federal taxes and import/export taxes for beer. Overall, the beer tax is an unknown cost to the customer and its utility should be calculated before taxing a growing industry.
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