FOX17: Tennessee Has The Highest Beer Taxes in the Country! 33_FOX17_tn_beer_tax

June 28, 2024 11:54 AM

Fox17_Nashville

Before you pop open a cold beer at a Fourth of July barbecue next week, here’s something to keep in mind: Tennessee residents pay the highest beer taxes in the nation. This and other so-called vice taxes add up to hundreds of millions of dollars every year.

 

1. How high are the beer taxes we pay in Tennessee and what do other states pay? 
A: Tennessee beer is taxed $1.29 per gallon, that’s the highest in the nation.
If you say, “well, I don’t buy or drink beer by the gallon,” that’s just how it’s recorded. The tax rates are based on the taxes on the off-premise sales of 4.7% alcohol beer in 12-ounce containers.
Rates range from as low as $0.02 per gallon in Wyoming and $0.06 per gallon in Missouri and Wisconsin. Alaska charges the second-highest after Tennessee’s $1.29 — they pay $1.07 per gallon, followed by Kentucky and Hawaii at $0.93 per gallon.
 
2. How much do these taxes add up to for the state?
A: Last year, beer drinkers in Tennessee paid almost $19 million in taxes.
But the other vice taxes actually add up to a lot more in revenue.
Last year, people buying tobacco paid $214 million in taxes, and two other taxes on alcohol totaled $303 million. Those are combined on so-called “mixed drink” taxes and “alcoholic beverages.” That’s all according to the state Dept of Revenue.
In total, alcohol taxes brought in $321 million last year.
When you add in tobacco, is $535 million.
We looked at 2022, that was also over $500 million, and 2021, was $450 million.
So vices can be expensive in more ways than one.
 
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