5.2.8 New Revenues to Fill the
Fiscal Gap—Alcohol Tax
Alaska ranks fifth in all the states for taxes on "spirits"
at a rate of $5.60 per gallon, eleventh for taxes on beer ($.35/gallon),
and fourteenth for taxes on table wine ($.85/gallon).
| Comparison
of Alcohol Tax Rates by State, 2001 |
| State |
Spirits Tax ($/gallon) |
Table Wine Tax ($/gallon) |
Beer Tax ($/gallon) |
Spirits Tax Rank |
Wine Tax Rank |
Beer Tax Rank |
| Alabama |
(b) |
1.7 |
0.53 |
|
3 |
3 |
| Alaska |
$5.6 |
$0.85 |
$0.35 |
5 |
14 |
11 |
| Arizona (i) |
3 |
0.84 |
0.16 |
20 |
15 |
29 |
| Arkansas |
2.5 |
0.75 |
0.23 |
24 |
19 |
19 |
| California |
3.3 |
0.2 |
0.2 |
17 |
45 |
21 |
| Colorado |
2.28 |
0.28 |
0.08 |
28 |
42 |
46 |
| Connecticut |
4.5 |
0.6 |
0.194 |
8 |
25 |
23 |
| Delaware |
3.75 |
0.97 |
0.156 |
15 |
12 |
31 |
| District of Columbia |
1.5 |
0.3 |
0.09 |
34 |
41 |
43 |
| Florida |
6.5 |
2.25 |
0.48 |
1 |
1 |
4 |
| Georgia |
3.79 |
1.51 |
0.48 |
14 |
6 |
5 |
| Hawaii |
5.92 |
1.38 |
0.93 |
4 |
7 |
1 |
| Idaho |
(b) |
0.45 |
0.15 |
|
33 |
32 |
| Illinois |
4.5 |
0.73 |
0.185 |
9 |
20 |
25 |
| Indiana |
2.68 |
0.47 |
0.115 |
22 |
32 |
38 |
| Iowa |
(b) |
1.75 |
0.19 |
|
2 |
24 |
| Kansas |
2.5 |
0.3 |
0.18 |
25 |
38 |
26 |
| Kentucky |
1.92 |
0.5 |
0.08 |
32 |
31 |
47 |
| Louisiana |
2.5 |
0.11 |
0.32 |
23 |
48 |
12 |
| Maine |
(b) |
0.6 |
0.35 |
|
24 |
10 |
| Maryland |
1.5 |
0.4 |
0.09 |
33 |
35 |
42 |
| Massachusetts |
4.05 |
0.55 |
0.106 |
11 |
28 |
39 |
| Michigan |
(b) |
0.51 |
0.2 |
|
29 |
20 |
| Minnesota |
5.03 |
0.3 |
0.148 |
7 |
37 |
33 |
| Mississippi |
(b) |
0.35 |
0.427 |
|
36 |
6 |
| Missouri (e) |
2 |
0.3 |
0.06 |
31 |
40 |
49 |
| Montana |
(b) |
1.06 |
0.139 |
|
10 |
34 |
| Nebraska (a) |
3 |
0.75 |
0.23 |
19 |
18 |
18 |
| Nevada |
2.05 |
0.4 |
0.09 |
30 |
34 |
41 |
| New Hampshire |
(b) |
(b) |
0.3 |
|
|
13 |
| New Jersey |
4.4 |
0.7 |
0.12 |
10 |
22 |
37 |
| New Mexico |
6.06 |
1.7 |
0.41 |
3 |
4 |
7 |
| New York |
6.44 |
0.189 |
0.135 |
2 |
46 |
35 |
| North Carolina (a) |
(b) |
0.79 |
(c) |
|
16 |
|
| North Dakota |
2.5 |
0.5 |
0.16 |
26 |
30 |
30 |
| Ohio (b) |
2.25 |
0.3 |
0.18 |
29 |
39 |
27 |
| Oklahoma |
5.56 |
0.72 |
0.4 |
6 |
21 |
8 |
| Oregon |
(b) |
0.67 |
0.084 |
|
23 |
44 |
| Pennsylvania |
(b) |
(b) |
0.08 |
|
|
45 |
| Rhode Island |
3.75 |
0.6 |
0.097 |
16 |
26 |
40 |
| South Carolina (e), (d) |
2.72 |
1.08 |
0.77 |
21 |
9 |
2 |
| South Dakota |
3.93 |
0.93 |
0.27 |
13 |
13 |
14 |
| Tennessee |
4 |
1.1 |
0.125 |
12 |
8 |
36 |
| Texas |
2.4 |
0.204 |
0.198 |
27 |
44 |
22 |
| Utah (b) |
(b) |
13% |
0.355 |
|
47 |
9 |
| Vermont |
(b) |
0.55 |
0.265 |
|
27 |
15 |
| Virginia |
(b) |
1.51 |
0.256 |
|
5 |
17 |
| Washington (g) |
(b) |
0.78 |
0.26 |
|
17 |
16 |
| West Virginia |
(b) |
1 |
0.177 |
|
11 |
28 |
| Wisconsin (a), (h) |
3.25 |
0.25 |
0.065 |
18 |
43 |
48 |
| Wyoming (f) |
(b) |
(b) |
0.02 |
|
|
50 |
Footnotes
Sources: State Revenue Departments; Commerce Clearing House; Federation
of Tax Administrators; and various state taxpayer organizations.
From: Table 7, Various State Tax Rates as of December
31, 2001, "State Tax Collections and Rates," by David Hoffman,
Special Report, Tax Foundation February 2002, No. 110. [http://www.taxfoundation.org/sr110.pdf]