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  1. #1
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    The cost of spirits

    There have been various threads on the cost of bourbon, taxes, the impact of the various state ABCs, etc.

    I came across this article that explains how it all adds up (in this instance in North Carolina).

    Some excerpts:

    The distiller's base price for a case of 12 bottles of Aristocrat Vodka, for example, is $5.79 – just less than 50 cents a bottle.

    Then a federal excise tax, distiller's freight charges and bailment charges for the warehouse storage are added, and that case's price goes up to $32.91.

    Then the local ABC board tacks on a 39 percent markup that's used to generate profit, bringing that price to $45.74, and then state taxes, additional markups and another bailment surcharge bring the case to a total of $61.92. With bottle charges added and an 8 percent sales tax added, that's $5.67 per bottle purchased at the ABC store.
    John B

    "Drinking when we are not thirsty and making love at all seasons… that is all there is to distinguish us from other animals."

  2. #2
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    Re: The cost of spirits

    After reading that I'm pissed off again John.
    Joe
    Colonel Joseph B. "Bourbon Joe" Koch

    "Bourbon.....It's cheaper than therapy!!"

  3. #3
    Bourbonian of the Year 2010 and Guru
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    Re: The cost of spirits

    And I'd be willing to bet that at least 10% of that base price of $0.50 per bottle is made up of taxes too...payroll taxes, property taxes, energy taxes, etc.
    2010 Bourbonian of the Year

    As long as you have good whiskey you're not "unemployed", you're "Funemployed!!!"

    I'm no Pappyophile

  4. #4
    Connoisseur
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    Baldwin, Maryland
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    Re: The cost of spirits

    It just doesn't cost much to distill cheap(or premium) vodka. No aging of spirit, etc. Packaging is most likely the highest cost.
    Dave G.

  5. #5
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    Re: The cost of spirits

    Quote Originally Posted by dgonano View Post
    It just doesn't cost much to distill cheap(or premium) vodka. No aging of spirit, etc. Packaging is most likely the highest cost.
    Agree. But I'm willing to bet the rest of the economics (e.g., taxes and markups) apply comparably to bourbon and other aged spirits.
    John B

    "Drinking when we are not thirsty and making love at all seasons… that is all there is to distinguish us from other animals."

  6. #6
    Advanced Taster
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    NJ
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    Re: The cost of spirits

    Discussed this article with a buddy and he pointed me to this document:

    http://www.taxfoundation.org/taxdata/show/245.html

    Interesting to see what other states charge

  7. #7
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    Re: The cost of spirits

    I would be so much easier and cheaper to just distill our own stuff.
    “Giving money and power to government is like giving whiskey and car keys to teenage boys.” - P.J. O’Rourke
    Greg's "bourbondork" blog

  8. #8
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    Pelham, AL
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    Post Re: The cost of spirits

    Looks like AL is fourth worst, behind only Oregon, Washington, and Virginia. I told y'all it is bad, here.

    Tim
    Self-Styled Whisky Connoisseur

  9. #9
    Connoisseur
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    Oct 2006
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    The Old Original SW
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    Angry Re: The cost of spirits

    Quote Originally Posted by barturtle View Post
    And I'd be willing to bet that at least 10% of that base price of $0.50 per bottle is made up of taxes too...payroll taxes, property taxes, energy taxes, etc.
    Great subject for discussion....something I've suspected for some time that is shackled with taxes like just about everything else in this country now.....sad thing is, about to get a lot worse in the forseeable future. Better stop or this is going to get moved to the politics, controversy, etc., arena herein.

  10. #10
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    Virginia
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    Re: The cost of spirits

    Quote Originally Posted by ratcheer View Post
    Looks like AL is fourth worst, behind only Oregon, Washington, and Virginia...
    And Virginia just had another liquor tax hike!?!?!. Maybe we are vying to become a de facto dry state? Much of our retail prices are in keeping with what others pay, but sometimes we pay 10-30% more. We are fortunate in that we have a good selection available in this ABC state. Also, we have a lower sales tax than many states at only 5%.

 

 

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