$1.07 to $3.40 depending on alcohol content. The federal government collects about one billion dollars per month from excise alcohol taxes on spirits , beer, and wine. The taxes on spirits are much higher than those on beer or wine. Therefore, well over half of that tax money comes from spirits consumers.
Key Provisions Under present law, wine is subject to an excise tax of between $1.07 and $3.40 per gallon, based on alcohol content and carbonation level.
The city liquor tax rate is $0.36 per gallon on wine containing 14% or less and $0.89 per gallon on wine containing more than 14% and less than 20% alcohol by volume.
In the U.S. alone, the alcohol beverage industry is responsible for sustaining more than 4 million jobs and generating almost $70 billion in annual tax revenue.
Alcohol taxation was particularly appealing because it was less regressive than excise taxes on grain or textiles. The poor needed food and clothing, but they didn’t really need ale. If they couldn’t afford the tax, the poor could abstain from drinking , or at least indulge in weaker libations.
Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by percentage) or specific (cost charged by unit).
Excise taxes levied for this purpose are often called “sin taxes .” Similarly, governments use excise taxes to help cover costs related to the taxed item. For example, excise taxes on gasoline help pay for new highway construction. Other excise taxes fund activities that benefit society.
Alcohol Excise Taxes Excise tax revenue from alcoholic beverages amounted to $10.0 billion in 2019, 10 percent of total excise receipts.
Liquor Tax (7573)
|Municipal Code Reference:||3-44|
|Tax Rates:||$0.29 per gallon of beer $0.36 per gallon of liquor containing 14% or less alcohol by volume $0.89 per gallon for liquor containing more than 14% and less than 20% of alcohol by volume $2.68 per gallon containing 20% or more alcohol by volume|
And that’s mostly because of liquor pour cost. A beverage program with low pour cost is the beating heart of a profitable bar or restaurant. The average net profit margin for a bar is between 10 and 15%.
The 25 most valuable liquor brands in the world No. 8: Wuliangye. No. 7: Yanghe. No. 6: Bacardi. eBay. No. 5: Smirnoff. Wikimedia. No. 4: Jack Daniel’s. Getty Images for New York Magazine. No. 3: Hennessy. Cumi&Ciki / Flickr, CC. No. 2: Johnnie Walker. Wikimedia Commons. No. 1: Moutai. REUTERS/China Daily.
Pour Costs and Profits If your bar pours 1.25 ounce shots, you’ll get 20 shots per bottle, with about one-third of a shot left. If the whiskey costs you $15 per bottle, your pour cost is 75 cents . When you sell that shot for $4, you’re achieving an 18.75 percent pour cost and an 81.25 percent gross profit margin.