Tax collectors toast your choice of alcoholic beverages

November 29, 2013

Did you finish off that bottle of Pinot Grigio with yesterday's turkey feast? Are you about to open another one to go with leftovers?

Or maybe your prefer beer. Or you really, really need something a little stronger to deal with your crazy uncle's incessant political rants.

Whatever potent potable you do select, a part of the price will go to tax collectors.

Tax percentages on a bottle of distilled spirits_Distilled Spirits CouncilIf you opt for the hard stuff, a substantial portion of what you pay covers various taxes, according to the Distilled Spirits Council of the United States (DSCUS).

The national trade association for producers and marketers of distilled spirits says that in 2012, the retail price of a typical 750 milliliter bottle of 80 proof spirits was $14.42. DSCUS calculated that more than half that cost — $7.83 or 54 percent — went to taxes.

After handing over a portion to federal, states and indirect taxes (e.g., personal and corporate income, payroll and property taxes), the private share take of $6.59 cents on that bottle is split by distillers, importers, wholesalers and retailers.

Best, worst tax places to buy booze: Of course, the tax amounts will vary depending on where you live.

If you're buying your booze in Wyoming, then be sure to give thanks for the negligible taxes that state assesses alcoholic beverages.

In fact, a recent study by Nerdwallet named Wyoming as the best state from a tax perspective to buy booze.

All alcohol sales are controlled through the state, notes the finance site, resulting in rock-bottom tax rates on beer, wine and liquor. Wyoming collects 2 cents per beer and has a negative effective tax rate on spirits due to significant pricing controls.

Joining the Cowboy State in Nerdwallet's list of the top five states with the lowest alcohol taxes are Missouri, New Hampshire, Colorado and Vermont.

At the other end of the adult beverages tax scale is Washington.

The Evergreen State, says Nerdwallet, has hefty taxes on spirits. You'll pay a 3.4 cent tax on a glass of wine and 7.1 cents extra for each stein of beer. If it's hard liquor you want, be ready to hand over 41.3 cents in tax for each cocktail you enjoy while in Washington.

Joining Washington on the finance site's list of states with highest taxes on alcohol are Alabama, Alaska, Oregon and Virginia.

Taxes aren't likely to stop any of from buying a bottle of wine, vodka or a six pack of our favorite microbrew.

But just know when you do, tax collectors will be joining you in saying "cheers!"

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