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  1. #11
    Connoisseur
    Join Date
    Jan 2014
    Location
    Washington DC
    Posts
    500

    Re: Bourbon and your state taxes

    Virginia is a control state, and its retail prices are online at www.abc.virginia.gov/Pricelist/price.html while Washington DC has an ABC Control Board overseeing licensed private stores. I quote prices paid before tax.

    Va's is about 4.3% while DC's is about 6%. In late 2013 WDC increased its off-premises spirits tax to 10%. Makers in DC (like Green Hat Gin)and wholesalers bringing spirits into DC pay $1.50 per gallon. See http://otr.cfo.dc.gov/node/232962 for more detailed info.

    Va ABC price for a 750ml of MM is $29.99 while stores in DC offer it, before specials or discounts, at $30.99 to $32.99 depending on the neighborhood.
    Last edited by Harry in WashDC; 01-26-2014 at 15:12. Reason: more detailed info

  2. #12

    Re: Bourbon and your state taxes

    I can tell you those retailer markups in Washington are quite high compared to other states.

    It is also tough to get an across the board cost from distiller to distributor. Shipping and volume will vary greatly.

    In KY, retail liquor/wine markups are between 10% (sale items) and 40% (rural liquor stores with little competition). We average slightly over 25% markup (20% margins) including all beer, liquor, wine and NA mixers/soda/bar items.

  3. #13
    Moderator
    Join Date
    Mar 2008
    Location
    Illinois
    Posts
    4,423

    Re: Bourbon and your state taxes

    Selection here in Illinois is pretty decent overall. Taxes are another matter. We have the obligatory 8.25 % state sales tax. Some areas of the state have other taxes too. Where I live, there's also a local 1% tax on alcoholic beverages on top of the state sales tax. Other places have a county tax on top of the state sales tax, while yet even other places have a county tax AND, a local tax on top of the state sales tax. FWIW, I'm pretty sure that the political climate here in Illinois has nothing to do with it at all.
    " I never met a Weller I didn't like"

  4. #14

    Re: Bourbon and your state taxes

    Quote Originally Posted by fishnbowljoe View Post
    Selection here in Illinois is pretty decent overall. Taxes are another matter. We have the obligatory 8.25 % state sales tax. Some areas of the state have other taxes too. Where I live, there's also a local 1% tax on alcoholic beverages on top of the state sales tax. Other places have a county tax on top of the state sales tax, while yet even other places have a county tax AND, a local tax on top of the state sales tax. FWIW, I'm pretty sure that the political climate here in Illinois has nothing to do with it at all.
    I grew up in Illinois. In the state Capitol of all places. All those taxes yet Illinois is in terrible shape fiscally. Im surprised marijuana hasn't been floated as an answer.

    We have a 6% sales tax here in KY and our city has a 5% tax. Total of 11%.

    3 years ago, Kentucky had no sales tax on alcohol since it was so heavily taxed on the wholesale level.

    Jimmy Russell led the protests at the state Capitol building when they enacted the sales tax on booze. A great quote from him when interviewed on a local news: the damn Hoosiers will be able to buy Kentucky bourbon for less than a Kentuckian.

  5. #15
    Enthusiast
    Join Date
    Feb 2013
    Location
    PacNW
    Posts
    294

    Re: Bourbon and your state taxes

    I guess I was wondering if anyone has paid attention to the taxes "behind the shelf tag". For example, when Washington was a control state the state LCB was more than happy to tell you that, after purchasing spirits from the distributor, they collected 51.5% in various taxes (from the distributor and the consumer) and were included in the OTD shelf tag price.

    I imagine that most states have a series of alcohol taxes that are collected before it gets to a store where you "only" pay typical state/city sales tax.

    And yes Washington is outrageous, but if other states weren't somewhat close, we'd see a 750ml Maker's Mark for $35 in one state and $15 in another. Could it be that producers, distributors and retailers are able to increase margins in the lower taxed states like Wyoming with the effect to normalize consumer prices?

  6. #16
    Disciple
    Join Date
    May 2013
    Location
    Indiana
    Posts
    1,686

    Re: Bourbon and your state taxes

    In Indiana, the excise tax rate is $2.68 per gallon for spirits (>21% alcohol). Sales tax is paid on the shelf price.

    The following website shows a comparison of excise tax rates by state. Of course, excise tax is just one of several different types of taxes that can be applied to alcohol.

    http://www.taxadmin.org/fta/rate/liquor.pdf

  7. #17
    Virtuoso
    Join Date
    Apr 2011
    Location
    Sutton, Massachusetts
    Posts
    1,226

    Re: Bourbon and your state taxes

    $24.99 for a 750ml of Maker's around here last I checked. Don't know how it gets there from wholesale but I believe our sales tax on alcohol for off-premises consumption (no restaurant) was repealed a couple of years ago if the alcohol were already subject to an excise tax when coming into the state (I guess I should be paying closer attention to my sales receipt). I'm unfamiliar with what those excise tax rates are or who pays (wholesaler, distributor, retailer, or all three).

    As a side note, I also noticed that at the big box stores, Maker's comes in maybe twice a year. An assumption on my part, since the display starts out as a monsterously huge thing with 750mls and handles galore stacked halfway to the ceiling. As the year goes on this gets lower and smaller to the point where it is only on the shelf and then it grows again. I don't know whether this is a reflection of buying in bulk to get further discounting or how the product is shipped into the distribution chain from the distillery. But the next time it "grows" it will be interesting to see what the shelf price is. At smaller local retailers, the bottle is $1 to $2 higher.
    Mark

  8. #18

    Re: Bourbon and your state taxes

    With big box stores, it Is tricky. They might pay a certain price per case when they buy it. But beam/makers might pay them "rent" to keep a large display at all times. That might be a 30, 50 or even a 100 case display. Beam reps will stock, rotate it seasonally etc.

 

 

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