Neglected and Outdated State Beer Taxes

Bottom of the Beer Barrel: 12 States With Worst Tax Rates

About the Worst Beer Tax Data
The table above provides the underlying data for the twelve states with the "worst" beer tax rates in the nation. To find these states, three criteria were used: current tax rate (per gallon), the year of last increase, and the percent decrease in real value. Three states: Wyoming, Pennsylvania, and Kentucky ranked at the bottom of the list for all three criteria. Seven states: Idaho, North Dakota, West Virginia, Michigan, Louisiana, Mississippi, and Georgia ranked in the bottom for two of the criteria (year of last increase and decrease in real value). An additional two states, Wisconsin and Missouri, complete the list of the five states with the lowest beer tax rates. The amount of potential revenue from increasing each state's tax rate by 10 cents per drink was generated using the Alcohol Justice Alcohol Tax Calculator.

Years Since Last Increase
What you could buy for $1.00 in 1950 would cost you $8.93 in 2008. This is because over time, inflation causes prices to rise. However, beer taxes are not linked to inflation. Instead, they remain constant until they are increased through policy action. Some states have not updated their excise tax rate for decades, which means inflation has taken a huge bite out of its value. More than half of the states have not increased their excise tax rate in twenty years or more. Because of this, state tax revenue collections suffer.

Data Sources
1. Year of last increase, as of 2010. 
2. Excise tax rates were deflated using annual CPI data through 2009, the most recent year for which annual inflation data were available.
3. State beer excise tax rates and historical changes were obtained from the Brewer's Almanac and Adams Beer Handbook.
4. Alcohol Justice Alcohol Tax Calculator