Popularity of Flavored Whiskeys

[P&MLiquorsEric]

Well that sucks. No wonder they barrel so much of it at 4 years or less.

[393foureyedfox]

I believe they pay a flat tax per barrel each year based on entry proof no matter how much is left inside.

thats what i understood from all the tours ive taken in. the above post though made it sound as though it may be taxed differently based upon the proof at which it is bottled and sold.

paying taxes on 53 gallons every year per barrel explains the high cost of highly aged whiskeys though. if youve been paying taxes on 53 gallons for 25 years, only to open it up and get 10 gallons out of it, the cost of all those taxes over 25 years on something you cant recover, plus the cost of warehousing something for 25 years, makes for one pricey product.

Edited September 13, 2013 by 393foureyedfox

[squire]

There are other taxes that apply after the whisky is bottled and makes its way through the distribution system and proof may well play a part there.

[393foureyedfox]

wouldnt surprise me. uncle sams got his paws in every step of everything.

tax you on what you earn, tax you when you spend whats left, and then retax you on what you own (property taxes, etc). what a racket

[P&MLiquorsEric]

thats what i understood from all the tours ive taken in. the above post though made it sound as though it may be taxed differently based upon the proof at which it is bottled and sold.

paying taxes on 53 gallons every year per barrel explains the high cost of highly aged whiskeys though. if youve been paying taxes on 53 gallons for 25 years, only to open it up and get 10 gallons out of it, the cost of all those taxes over 25 years on something you cant recover, plus the cost of warehousing something for 25 years, makes for one pricey product.

Uncle Sam is great at taxing the same item a multitude of stages in its production. A tax is paid to "warehouse" barrels (basically a property tax) and more taxes are paid when bottled and shipped. Plus the states get their cut too.

[TunnelTiger]

Just wait till they start a value added tax like Europe, woohoo!

[P&MLiquorsEric]

Just wait till they start a value added tax like Europe, woohoo!

With booze, there are already lots of similar taxes. We just call them warehousing, wholesale and then sales tax.

[squire]

Then sales tax on the distributor to the retailer, then State, County and City sales taxes to me when I buy it from him.

[theglobalguy]

Then sales tax on the distributor to the retailer, then State, County and City sales taxes to me when I buy it from him.

It's one of those cases where i'd love to see what the cost would be without all that (out of curiosity), but would regret that decision forever after when picking up a bottle. And as much as i know we pay plenty, every trip to Canada i am starkly reminded it could be much worse.

[Flyfish]

paying taxes on 53 gallons every year per barrel explains the high cost of highly aged whiskeys though. if youve been paying taxes on 53 gallons for 25 years, only to open it up and get 10 gallons out of it, the cost of all those taxes over 25 years on something you cant recover, plus the cost of warehousing something for 25 years, makes for one pricey product.

On our tour at BT we watched the barrels being filled. Then they rolled a few feet to where a bar code was added. Tour guide Freddie said that as soon as the bar code was added, the tax clock started ticking. Tick, tick, tick just like the clock in Peter Pan that haunts Capt. Hook.

[Richnimrod]

In general I like flavored whiskeys very well..... But only if the flavoring agents are:

*The Mashbill

*The Barrel Char

*The Lovely Red-Line

*The Age

*The Position in the Rickhouse

[cowdery]

The FET is owed when the whiskey is removed from bond or at the end of the bonding period, whichever comes first. The amount is based on volume and proof, figured to proof gallons. The rate is $13.50 per proof gallon. It is based on the actual amount withdrawn. You don't pay tax on angel's share.

State and local taxes that are based on alcohol content are based on proof in the bottle.