by Jon Styf
Tennessee has the highest beer tax rate in the country, according to a new report from the Tax Foundation.
Tennessee’s rate is $1.29 per gallon, one of just two states that charge more than $1 per gallon in the country. Alaska charges $1.07.
In the fiscal year just completed at the end of July, Tennessee collected more than $19 million in beer tax, which was $1.6 million more than it had budgeted. The year before, it collected $18.7 million in beer tax.
Tennessee also has a mixed drink, or liquor-by-the-drink, tax that resulted in $189.8 million in taxes last fiscal year, which was nearly $60 million more than the state budgeted for. In the fiscal year before, ending in July 2021, Tennessee collected $115.8 million in mixed drink taxes.
In July alone, done by accrual for consumer spending this June, Tennessee collected nearly $1.8 million in beer taxes and more than $17 million in mixed drink taxes.
Hawaii (93 cents), Kentucky (89 cents), South Carolina (77 cents) and North Carolina (62 cents) have the next highest state tax rates for beer. The state rates were based on 4.7% alcohol by volume beer in a 12-ounce container.
The federal beer tax is between 11 and 58 cents per gallon based on production, location and quantity.
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Jon Styf is an award-winning editor and reporter at The Center Square who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies.
Photo “Beer at the Grocery Store” by ryaninc. CC BY 2.0.
The wine and spirits people, and beer distributors had an iron lock on control of Tennessee, back when the Democrats were in charge. Tennessee, along with Mormon controlled Utah, are the two weirdest states in the Union when it comes to alcohol. I expected some good changes when the Republicans took control 12 years ago, but its Same Crap, Different Party.
Seems like the GOP is to be commended for keeping the sin taxes in place.
Who said that drinking is not a good thing to do? It sure is not the state of Tennessee. It must be “for the kids” like the lottery. You know, the “free” college charade.