Taxes

Anything about distilling ya read in news.

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Bushman
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Taxes

Post by Bushman »

We all know spirits is taxed way higher in the US than wine and beer but this graph I got from Distillery Trail is a great visual of just how much difference there is:
image.jpeg
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Re: Taxes

Post by bentstick »

Should open eyes that say its a load of work to make your own and time is money. EH!
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GrassHopper
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Re: Taxes

Post by GrassHopper »

On top of federal taxes is State excise taxes

When comparing per gallon taxes on alcohol, spirits taxes are by far the highest (followed by wine and beer). Spirits are taxed the highest in Washington at $35.22 per gallon. Next in line are Oregon ($22.73), Virginia ($19.19), Alabama ($18.23), and Alaska ($12.80). Least-taxed states are Wyoming and New Hampshire, which have no spirits excise taxes (note that these are states in which the government controls all sales, and spirits may be subject to ad valorem mark-up and excise taxes). These are followed by West Virginia ($1.87), Missouri ($2.00), Colorado ($2.28), and Texas ($2.40).

Then on top of State excise taxes are all sorts of various taxes from wholesale taxes, volume taxes, ABV taxes, license taxes, taxes ad nausem.

To see where your state is:
http://taxfoundation.org/blog/map-spiri ... state-2014" onclick="window.open(this.href);return false;" rel="nofollow
And our first president of the USA, George Washington was a distiller. There were no taxes. :(
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bitter
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Re: Taxes

Post by bitter »

If you think its bad there look up Canada. Taxes are almost the cost of a bottle. If its a $30 bottle @ 40% cost about $29 in taxes to bring it in.

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Re: Taxes

Post by Bushman »

I live close to the Canadian border and I know the prices, lucky for me if I do buy booze I can get it at the duty free going both ways.
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Re: Taxes

Post by thecroweater »

:lol: all relative they say, I would say ya paying pennies and nickels, try $306.77 tax per gallon for size and see how that fits against ya $13.50 :wink:
https://www.ato.gov.au/business/excise- ... r-alcohol/" onclick="window.open(this.href);return false;" rel="nofollow
Last edited by thecroweater on Sat Mar 12, 2016 12:04 am, edited 2 times in total.
Reason: didn't realize our tax rate had increased a month back
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Bushman
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Re: Taxes

Post by Bushman »

thecroweater wrote::lol: all relative they say, I would say ya paying pennies and nickels, try $306.77 tax per gallon for size and see how that fits against ya $13.50 :wink:
https://www.ato.gov.au/business/excise- ... r-alcohol/" onclick="window.open(this.href);return false;" rel="nofollow
I here ya, in Washington State we have on top of the Federal Tax a State and local which brings us to around 33%.
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Re: Taxes

Post by craftsman »

Here's an alcohol tax map from last year for each state. Cheers! :crazy:

http://taxfoundation.org/blog/map-state ... rates-2015" onclick="window.open(this.href);return false;" rel="nofollow
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Re: Taxes

Post by Bushman »

Looking at that chart just proves my point. It is surprising we have more micro distilleries than any other state here in Washington with the difference in taxes compared to the rest of the US. What is not surprising is the number of members from Washington that belong to this forum since the taxes are so much higher than anywhere else.
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Re: Taxes

Post by goinbroke2 »

This statement "Compared to taxes on alcoholic beverages such as wine and beer, distilled spirits are taxed at much higher rates across the states, ostensibly to adjust for higher alcohol content" has got to be the stupidest, crock of shite I have read in a while.
Spirits are taxed per gallon of 100% alcohol, so if it was 40% spirits or 5% beer, the tax in theory should be the same at 100%, but it's not. The rate for beer for example in some states (or provinces if you want to go there) is $1.20 per gallon of 100% alcohol (which at 5% is what, 20 gallons of beer?) but the tax on Spirits is $26.00 per gallon of 100% alcohol which is 2.5 gallons at 40%.

If spirits and beer were taxed the same, but "adjusted for the higher alcohol content" then beer would be $1.20 per gallon of 100% alcohol and spirits would be $1.20 per gallon of 100% alcohol.
Beer - $1.20 added to 20 gallons = 13.31 bottles of 341ml size or about 9 cents per bottle.
Spirits - $1.20 added to 2.5 gallons = 6.05 bottles of 750ml size or about 19.8 cents per bottle.

So, clearly that is a crock of shite designed as a "red herring" to throw people off. "uh yeah, spirits are stronger, that's why..." :thumbdown: :evil:
They are NOT taxed equally and it has NOTHING to do with the "percentage"....bastards....
Numerous 57L kegs, some propane, one 220v electric with stilldragon controller. Keggle for all-Grain, two pot still tops for whisky, a 3" reflux with deflag for vodka. Coming up, a 4" perf plate column. Life is short, make whisky and drag race!
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goinbroke2
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Re: Taxes

Post by goinbroke2 »

thecroweater wrote::lol: all relative they say, I would say ya paying pennies and nickels, try $306.77 tax per gallon for size and see how that fits against ya $13.50 :wink:
https://www.ato.gov.au/business/excise- ... r-alcohol/" onclick="window.open(this.href);return false;" rel="nofollow
Crow, I hate that though, I hear the same thing around here when I say the taxation is driving business away and people say "well, it could be worse" or "well, it's always been like that" I say F^%& 'em! I don't care what it could be or whatever, I care about the stupid government doing stupid things and people accepting it, because it's the government doing it.

Not allowed to get political so I'll stop there, I'll just say the gov works FOR the people, it doesn't rule over them.
Numerous 57L kegs, some propane, one 220v electric with stilldragon controller. Keggle for all-Grain, two pot still tops for whisky, a 3" reflux with deflag for vodka. Coming up, a 4" perf plate column. Life is short, make whisky and drag race!
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Re: Taxes

Post by DAD300 »

Ah...the government is supposed to work for the people...
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Re: Taxes

Post by LWTCS »

Bushman wrote:Looking at that chart just proves my point. It is surprising we have more micro distilleries than any other state here in Washington with the difference in taxes compared to the rest of the US. What is not surprising is the number of members from Washington that belong to this forum since the taxes are so much higher than anywhere else.
The craft licence cost nil and the state does a nice job of removing most boundaries to entry. Distillers can sell a bunch more out of their tasting rooms, flee market, etc with out having to jump through many hoops that the rest of the states do.
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