Excise taxes on liquor vary widely across the nation. | Pixabay
Excise taxes on liquor vary widely across the nation. | Pixabay
Michigan has the tenth-highest excise tax on liquor in the nation, reported Michigan Capitol Confidential.
Retail stores are required to pay excise taxes on distilled spirits that are in stock, but customers pay for the tax burden, which is rolled into the price that consumers pay for their liquor.
The Tax Foundation reported that Michigan’s excise tax on liquor is $11.95 per gallon.
Washington stands as the state with the highest excise tax on liquor, which is $33.22 per gallon. Following is Oregon at $21.95 per gallon, Virginia at $19.89 per gallon and Alabama at $19.11 per gallon.
Utah, North Carolina, Iowa, Alaska and Maine have higher rates than Michigan as well.
On the least-expensive side of things are Wyoming and New Hampshire, which are control states, meaning their liquor sale transactions are done by government-operated stores.
“These two control states gain revenue directly from alcohol sales through government-run stores and have set prices low enough that they are comparable to buying spirits without taxes,” the Tax Foundation said.
In addition to the liquor levy in Michigan, the state also is the exclusive wholesaler of hard liquor, which it marks up across the entire state.
Retail buyers are required to pay sales tax on liquor purchases.
“The rules and taxes states impose on alcohol sales are generally a product of measures taken when the nation ended its 13-year experiment in Prohibition, which ended in 1933,” Michigan Capitol Confidential reported.
While some states collect bottle or case fees, it all depends on the state and the size of the container.
The Tax Foundation reported that Texas, Arizona, Colorado, Kansas, Wisconsin, Indiana, Louisiana and Missouri all have among the lowest taxes on distilled spirits.
States with moderately expensive taxes included New Mexico, Oklahoma, Arkansas, Mississippi, Kentucky, Illinois and Florida.
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