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How High are Beer Taxes in New Jersey ?

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the staff of the Ridgewood blog

Ridgewood NJ, its summer time and the living is easy and the beers is flowing ,be  it at a ball game or at a back yard BBQ.According to the Beer Institute, “Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.” Research has shown that approximately 40 percent of the retail price of beer is dedicated toward covering all the applicable taxes.

The United States collects an excise tax on beer at the federal level (ranging from $0.11 to $0.58 per gallon based on production, location, and quantity), but all 50 states and the District of Columbia also collect their own taxes on fermented malt beverages. While general sales taxes are tacked on after the price of goods is subtotaled, most states go straight to the retailer for beer excise taxes, collecting according to the quantity of beer sold (usually expressed as a rate of dollars per gallon). Although you can’t see the taxes on your receipt, vendors pass along those costs to consumers in the form of higher prices.

While a state’s excise tax on beer is usually levied on retail sales, some collection variations exist from state to state. For instance, some states levy taxes further up the supply chain by taxing brewers, importers, or other wholesalers at a percentage of revenue generated or at a fixed price per gallon, bottle, or case of beer sold. Many states also generate revenue by collecting license fees from beer distributors.

Because beer taxes are often collected at earlier points in the supply chain, the only tax a consumer will see printed on his or her receipt is any applicable state or local sales tax that applies to the purchase. Some states specify higher alcoholic beverage sales tax rates (that apply to beer, wine, and spirits) in lieu of the general sales tax rate. In Minnesota, for example, beer retailers are taxed at $0.15 per gallon, and then an alcohol-specific sales tax of 9 percent (instead of the state’s 6.875 percent general sales tax rate) is applied at the point of sale and shows up on the customer’s receipt.

Rates vary widely by state: as low as $0.02 per gallon in Wyoming and as high as $1.29 per gallon in Tennessee. Missouri and Wyoming tie for second lowest at $0.06 per gallon, and Alaska sits at the second highest with its $1.07 per gallon tax. Amazingly New Jersey comes in number 42 at.12 perm gallon , don tell the governor. 

One thought on “How High are Beer Taxes in New Jersey ?

  1. just wait until marijuana is legal nationally… 40% taxes will seem like a dream.

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