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Report: Tennessee, Kentucky rank high on beer excise tax rates


(The Center Square) – Tennessee is atop the list and Kentucky is third in excise rate per gallon of beer, according to data compiled by the Tax Foundation.

Tennessee beer is taxed $1.29 per gallon while Kentucky is charged 93 cents, with Alaska ($1.07 per gallon) in between.

The calculation includes a $35.60 per barrel wholesale tax in Tennessee and 10% Kentucky barrel tax.

The rates are figured based upon the taxes on the off-premise sales of 4.7% alcohol beer in 12-ounce containers.

Wyoming (2 cents) and both Wisconsin and Missouri (6 cents) have the lowest rates.

There are 16 states with beer excise tax rates that vary based on alcohol content, place of production, size of container or place purchased.

“State excise taxes are often levied on the manufacturer, wholesaler, or retailer of beer,” the Tax Foundation wrote. “The states collect these excise taxes according to the quantity of beer sold (usually expressed as a rate of dollars per gallon). In many instances, consumers won’t see the tax as an additional excise tax at checkout; the tax will already be priced into the retailer’s sales price.”