Consumer Taxes

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49. Consumer Taxes

The taxation system in the United States is very complicated due, in part, to the attempt by governing bodies to make taxation, across the board, appear reasonable and invisible.

Overall, there are two types of consumer taxes. Some are meant merely to raise revenues while others are designed to inhibit certain behavior. (In the income tax arena, however, which is significantly in the domain of the federal government, taxes and deductions and exemptions are used to actually promote certain behavior, such as saving money or buying a house.) In many cases, the behavioral control aspect of the tax has outweighed the particular taxs revenue-raising function. For example, tobacco-producing states do not have cigarette taxes (Kentucky, 3¢, North Carolina, 1.75¢, and Virginia, 2.5¢) that are as high as those in states that, for various reasons, attempt to inhibit smoking (Maine, $2.00, Arizona, $1.18, and Michigan, $2.00).

Market forces also influence consumer taxes. For example, the tax on wines produced in California is low compared to taxes on wines produced in other states. If California taxes were close to the national average, then California wines sold in other states would have artificially inflated prices, thus hurting its marketability.

The taxes treated in this chapter are not exhaustive. Rather, they are representative of the most common and significant consumer taxes levied by states.

Table 49: Consumer Taxes
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
ALABAMA4% §40-23-221.25 mills/cigarette §40-25-216¢ §§40-17-31, 2204% §§40-23-61, 63Liquor monopoly state; Beer 5.0¢/12 oz. + 1.625¢/4 oz. (§§28-3-184, 190); Wine and spirits 10% wholesale price (§28-3-200) + 48% (§§28-3-201 to 205); Table wine 45¢/liter (§28-7-16)Native Farm wines 45¢/literNA
ALASKANone38 mills/cigarette plus 62 mills/cigarette §43.50.190, §43.50.0908¢ §43.40.010NoneBeer $1.07/gal.; Wine and spirits 21% alcohol $2.50/gal., >21% $12.80/gal. §43.60.010NA
ARIZONA5% §42-5010$1.18/pack of 20 §42-305218¢ §28-5606Same as sales for same type of activity §42-5155Beer 16¢/gal.; Wine <24% 84¢/gal., >24% 25¢/gal.; Spirits $3.00/gal. §42-3052NA
ARKANSAS6% §§26-52-301, 302$10.50 per thousand cigarettes §26-57-20813.5¢ §§26-55-205, 10025.125% §§26-52-302; 26-53-106, 107Beer 20¢/gal.;Light wine 25¢/gal.; Wine 75¢/gal.; Spirits $2.50/gal. §3-7-104;Premixed spirits $1.00/gal.;Light spirits 50¢/gal.NA
CALIFORNIA5.75% Rev. & Tax §§6051 to 6051.418.5 mills/cigarette plus 50¢/pack of 20 Rev. & Tax §§30101, 3012318¢ Rev. & Tax §73605.75% Rev. & Tax §§6201 to 6201.4Beer $1.24/barrel; Still wines 20¢/gal.; Sparkling wine 30¢/gal.; Spirits $3.30 to $6.60/gal. Rev. & Tax §§32151, 32201, 32220NA
COLORADO3% §39-26-10610 mills/cigarette §39-28-10322¢ §39-27-1022.9% §39-26-202Beer 8¢/gal.; Wine 7.33¢/liter (12.33¢/liter Colorado wines); Spirits 60.26¢/liter §§12-47-503Not to exceed 40% of adjusted gross profits §12-47.1-601
CONNECTICUT6% §§12-40875.5 mills/cigarette §12-31625¢ §12-4586% §§12-411Beer $6.00/barrel; Still wine <21% 60¢/gal., >21% and sparkling wine $1.50/gal.; Spirits $4.50/gal. §12-435NA
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
DELAWARE$75 annual fee plus 0.144% gross receipts Tit. 30 §270227.5 mills/cigarette Tit. 30 §530523¢ Tit. 30 §51101.920% Tit. 30 §4302Beer $4.85/barrel; Wine 97¢/gal.; Spirits <25% $3.64/gal., >25% $5.46/gal. Tit. 4 §§581NA
DISTRICT OF COLUMBIA5.75% §47-20025¢/cigarette §47-240220¢ §47-23015.75% §47-2202Beer $2.79/barrel; Wine <14% 30¢/gal, >14% 40¢/gal.; Sparkling wine 45¢/gal.; Spirits $1.50/gal. §§25-901, 902NA
FLORIDA6% §§212.0516.95 mills/cigarette §210.024¢ §206.416% §§212.05Beer 48¢/gal.; Wine <17.259% $2.25/gal., >17.259% $3.00/gal.; Sparkling wine $3.50/gal.; Spirits 17.259% to 55.78% $6.50/gal., >55.78% $9.53/gal. §§563.05; 564.06; 565.12NA
GEORGIA4% §48-8-3037¢/pack of 20 cigarettes §48-11-27.5¢ §48-9-34% §48-8-30Beer $10/barrel, in bottles or cans 5¢/12 oz.;Wine 40¢/liter + 27¢ excise tax on dessert wine; Spirits 50¢/liter, $1.00/liter imported §§3-5-60; 3-6-50; 3-4-60, 3-5-80NA
HAWAII4% §237-139¢/cigarette §245-316¢ + additional county rates §243-4, 54% §238-2Draft beer 54¢/gal.; Bottle beer 93¢/gal.; Still wine $1.38/gal.; Sparkling wine $2.12/gal.; Spirits $5.98/gal. §244D-4; rates adjusted semiannuallyNA
IDAHO6% §§63-361957¢/pack of 20 cigarettes §63-250625¢ §§63-24056% §§63-3621Beer $4.65/barrel; Wine 45¢/gal.; 15% of price per unit on all goods sold in state dispensary 23-217, 1319, 1008NA
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
ILLINOIS6.25% 35 ILCS 120/2-1049 mills/cigarette 35 ILCS 130/219¢ 35 ILCS 505/26.25% 35 ILCS 105/3-10Beer 18.5¢/gal.; Wine 73¢/gal.; Spirits $4.50/gal. 235 ILCS 5/8-1Riverboat gambling tax $2 per person admitted; wagering tax 15 to 70% adjusted gross receipts 230 ILCS 10/12, 230 ILCS 10/13
INDIANA6% §§6-2.5-2-255¢/pack of 20 §6-7-1-1218¢ §6-6-1.1-2016% §§6-2.5-3-3Beer 11.5¢/gal.; Wine <21% 47¢/gal., >21% $2.68/gal.; Spirits $2.68/gal. §§7.1-4-2-1; 7.1-4-3-1; 7.1-4-5-1Riverboat gambling tax of 22.5% adjusted gross receipts §4-33-13-1
IOWA5% IRA State & Local Taxes §21.005, et seq. 6.8¢/cigarette §453A.620.3¢ §452A.35% §423.2Beer $5.89/barrel; Wine $1.75/gal. §§123.136; §§123.183Excursion boat gambling tax: 5% on first $1 million; 10% next $2 million; 20% over $3 million (racetrack betting: over $3 million: 22%, increasing 2%/yr. to a maximum of 36%§99F.11
KANSAS5.3% §79-360379¢/pack of 20 cigarettes §79-331024¢ §§79-34, 1415.3% §79-3703Beer 18¢/gal.; Wine <14% 30¢/gal., >14% 75¢/gal.; Spirits $2.50/gal. (additional taxes for on-premises consumption) §§41-501; 79-4101; 79-41a02NA
KENTUCKY6% §§139.2003¢/pack of 20 cigarettes §138.14015¢ (9% of average wholesale price plus supplementary highway user motor fuel tax, computed quarterly) §138.2206% §§139.310Beer $2.50/barrel; Wine 50¢/gal.; Spirits $1.92/gal. §§243.720NA
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
LOUISIANA2% §§; 47:302, 3311.8¢/cigarette §47:84120¢ §§47:711, 820.14% §§; 47:302, 331Beer $10/barrel;Still wine <14% 3¢/liter, 14-24% 6¢/liter, >24% 42¢/liter; Sparkling wine 42¢/liter;Spirits 66¢/liter §§26:341, 342NA
MAINE5% Tit. 36 §§1811, 1861100 mills/cigarette Tit. 36§436522¢ Tit. 36 §29035% 36 §1861Liquor monopoly state; Beer 25¢/gal.; Wine 30¢/gal.; Sparkling wine $1.00/gal.;Spirits: Commission must sell at price that will produce state liquor tax sufficient to pay all govt liquor-related expenses, cost plus $1.25/proof gal. Tit. 28-A §§1651, 1652, 1703NA
MARYLAND5% Tax-Gen. §11-104$1.00/pack of 20 cigarettes Tax-Gen. §12-10523.5¢ Tax-Gen. §9-3055% Tax-Gen. §11-104Beer 9¢/gal.; Wine 40¢/gal.; Spirits $1.50 gal.; Tax-Gen. §5-105NA
MASSACHUSETTS5% Ch. 64H §250.5 mills/cigarette Ch. 64C §621¢ (19.1% of average price, but minimum cannot be less than 21¢/gal.) Ch. 62C§3A; Ch. 64A§1; Ch. 64E§4; Ch. 64F§35% Ch. 64I §2Beer $3.30/barrel; Still wine 55¢/gal.; Sparkling wine 70¢/gal.; Spirits <15% $1.10/proof gal., 15-50% $4.05/proof gal., >50% $4.05/proof gal. Ch. 138 §21NA
MICHIGAN6% §205.52100 mills/cigarette §§205.42719¢ §§207.10086% §205.93Beer $6.30/barrel; Wine <16% 13.5¢/liter, >16% 20¢/liter; Spirits offsale 13.85% of retail selling price, onsale 12% of retail selling price §§436.1409; 436.2203; 436.220518% of gross revenue of casino §432.213
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
MINNESOTA6.5% 297A.6224 mills/cigarette §297F.0520¢ §296A.076.5% 297A.63Beer 3.2% $2.40/barrel, >3.2% $4.60/barrel;Wine 14% 30¢/gal., 14-21% 95¢/gal., 21-24% $1.82/gal., >24% $3.52/gal.; Sparkling wine $1.82/gal.; Spirits $5.03/gal. §297G.03, 297G.04Horseracing 6% of net receipts plus 1% of gross bets §240.15; Gambling 8.5% other than pull tabs and tip boards §297E.02
MISSISSIPPI7% 27-65-17.9¢/cigarette §27-69-1318¢ §27-55-11Same rate as sales tax 27-67-5Beer, light wine 42.68¢/gal.; Wine 35¢/gal.; Sparkling wine $1/gal.; Spirits $2.50/gal. A 3% markup is imposed on all alcoholic beverages sold by the Alcoholic Beverage Control Division §§27-71-7, 201, 307; 67-1-413% state gambling tax §27-7-15
MISSOURI4.225% §144.020; Mo. Const. Art. IV §§43(a) and 47(c)6.5 mills/cigarette §149.01517¢ §142.803Same rate as sales tax §144.610Beer $1.86/barrel; Wine 30¢/gal.; Spirits $2/gal. §§311.550Riverboat gambling tax: $2.00 per person admitted §313.820
MONTANANone$1.70/pack of 20 cigarettes §16-11-11127¢ §15-70-204NoneLiquor monopoly state; Beer $4.30/barrel; Wine 27¢/liter; Spirits 13.8% retail selling price for companies <200,000 gal./year nationwide, 8.6% for >200,000 gal./year §§16-1-401, 404, 406, 411; 16-2-30115% gross income from video gambling machines; 1% gross receipts for horse-racing §§23-5-610, 23-4-202
NEBRASKA5.5% (Legislature is required to set rate each year) §§77-2701.02, 2715.0164¢/pack of 20 cigarettes §77-260217¢ §§66-4, 105; 66-4,144; 66-4,145; 66-4,146; 66-4895.5% §§77-2701.02, 2715.01Beer 31¢/gal.; Wine 95¢/gal.; Spirits $3.75/gal.; Wine from farm wineries 6¢/gal. §53-1605% gross receipts for boxing or wrestling matches; 0.4% gross sum wagers for admission tax for horse-racing §§81-8, 135, 2-1208
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
NEVADA6.5% §§372.105; 374.110; 377.04040 mills/cigarette §370.16523¢ §§365.175, 180, 190, 1926.5% §§372.185; 374.190; 377.040Beer 16¢/gal.; Wine <14% 70¢/gal., 14-22% $1.30/gal., >22% $3.60/gal. §369.330Gross revenues <$50,000/mo. 3.5%; $50,000-134,000 4.5%; >$134,000 6.75% §§463.370
NEW HAMPSHIRENone80¢/pack of 20 cigarettes §78:718¢ §260:32None30¢/gal. on all beverages sold at retail;Domestic wine 10% of gross sales §§178:6, 28, 301 or 2% of total contribution for racing; 5% gross receipts for boxing or wrestling §§284:23, 285:14
NEW JERSEY7% §54:32B-3.12¢/cigarette §54:40A-810.5¢ §54:39-277% §54:32B-6Beer 12¢/gal.; Wine 70¢/gal.; Spirits $4.40/gal. §54:43-18% of gross revenues §5:12-144
NEW MEXICO5% §7-9-44.55¢/cigarette §7-12-317¢ §7-13-35% §7-9-7Beer 41¢/gal.; Wine 45¢/liter; Spirits $1.60/liter §7-17-520% net take to purse for race track §60-2E-47
NEW YORK4% Tax §§1105$1.50/pack of 20 cigarettes §4718¢ §§284, et seq. 4% §§1110Beer 11¢/gal.;Still and sparkling wine 18.93¢/liter/gal. (natural);Spirits <24% 67¢/gal.; other $1.70/liter §424 
NORTH CAROLINA4.5% §105-164.41.75¢ mills/cigarette §105-113.517.5¢ §105-449.804.5% §105.164.6Beer 53.177¢/gal. Wine 21¢/liter unfortified, 24¢/liter fortified;Spirits 25% retail §§105-113.80NA
NORTH DAKOTA5% §§57-39.2-02.1, 03.25.5 mills/cigarette §§57-36-0623¢ §57-43.1-025% §§57-40.2-02.1Beer 8¢/gal. in barrels, 16¢/gal. in bottles; Wine <17% 50¢/gal.; 17-24% 60¢/gal.; Sparkling wine $1.00/gal.; Spirits $2.50/gal. §5-03-072.5% of 25% of wagering pool for horse races; gambling operations: 5% gross proceeds <$200,000, 10% $200,000 400,000, 15% $400,000 600,000, 20% >$600,000. §§53-06.2-11, 53-06.1-12
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
OHIO6% §5739.02562.5 mills/cigarette §§5743.02, 0232¢ + variable cents per gallon rate §§5735.25; 5735.055.5% §5741.02Beer $5.58/barrel; bottled: .14¢/oz. <12 oz.; .84¢/6oz. in containers >12 oz.; Wine 4-14% 30¢/gal., 14-21% 98¢/gal.; Vermouth $1.08/gal.; Sparkling wine $1.48/gal.; Spirits $1.20/gal. §§4301.42, 43; 4305.01Horseracing wagers: <$200,000, 1%; $200,000 300,000, 2%; $300,000 400,000, 3%; >$400,000, 4% §3769.08(B)
OKLAHOMA4.5% Tit. 68 §§13544 mills/cigarette Tit. 68 §§30216¢ Tit. 68 §§500.44.5% Tit. 68 §1402Beer <3.2% $11.25/barrel, >3.2% $12.50/barrel;Wine <14% 19¢/liter, >14% 37¢/liter; Sparkling wine 55¢/liter;Spirits $1.47/liter Tit. 37 §§163.3; 553Racing: admission tax 10%; 2% all money wagered; Boxing: 5% gross receipts Tit. 3A§§207, 205-6, 516
OREGONNone29 mills/cigarette §323.03024¢ §319.020NoneBeer $2.60/barrel; Wine <14% 67¢/gal., 14-21% 12¢/gal.; 473.030NA
PENNSYLVANIA6% Tit. 72 §§72026.75¢/cigarette Tit. 72 §820612¢ 75 §90046% Tit. 72 §§7202Beer $2.48/barrel; §9003; 47 §795Horse racing: admission tax 15% admission price; 1.5% wagers retained 4§§325.222, 325.208
RHODE ISLAND7% §§44-18-18, 20123 mills/cigarette §44-20-1230¢ §31-36-76% §44-18-20Made in state: Beer $3.00/barrel; Still wine 60¢/gal. (from Rhode Island grapes 30¢); Sparkling wine 75¢/gal.; Spirits $3.75/gal. variable rates for imported alcohol §3-10-1; 3-10-173-6% of total money wagered §§41-4-3, et seq.
SOUTH CAROLINA5% §§12-36-9103.5 mills/cigarette §12-21-62016¢ §§12-28-3105% §§12-36-1310Beer .6¢/oz.; Wine <21% 90¢/gal.; All other alcoholic beverages 12¢/8oz. or 50.7¢/liter;Wholesalers are subject to additional tax; Additional excise tax on sale of wine §§12-21-1020, 1040, 1310; 12-33-230, 240, 410, 425, 460NA
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
SOUTH DAKOTA4% §10-45-267.5 mills/cigarette §§10-50-3; 10-50-1022¢ §10-47B-4Same general rates as sales tax §10-46-2Beer $8.50/barrel; Wine 3.2-14% 93¢/gal., 14-20% $1.45/gal., 21-24% (except sparkling) $2.07/gal.; All other $3.93/gal.; Additional 2% imposed on all but malt beverages by wholesaler from distiller, manufacturer, or supplier §§35-5-3; 35-5-6.18% of adjusted gross proceeds; May be decreased or increased by Commission on Gaming from 5-15% §42-7B-28
TENNESSEE7% 67-6-20210 mills/cigarette plus 0.05¢/pack for dealers or distributors20¢ 67-3-2017% 67-6-209Beer $4.29/barrel; Wine $1.21/gal.; Spirits $4.40/gal. §§57-3-302; 57-5-201NA
TEXAS6.25% Tax §§151.051$70.50/thousand cigarettes Tax §154.02120¢ Tax §162.1026.25% Tax §§151.101Beer $6.00/barrel; Malt liquor >4% 19.8¢/gal.;Still wine <14% 20.4¢/gal., >14% 40.8¢/gal.; Sparkling wine 51.6¢/gal.; Spirits $2.40/gal. Alc. Bev. §§201.01, et seq. Bingo Enabling Act 3% facility rental; 5% prize Occ. Code §2001.501,502
UTAH4.75% §59-12-1033.475¢/cigarette §§59-14-20424.5¢ §59-13-2014.75% §59-12-103Beer $12.80/barrel; 13% retail purchase price all other §§59-15-101; 59-16-101 
VERMONT6% Tit. 32 §977189.5 mills/cigarette Tit. 32 §777119¢ Tit. 10 §1942; Tit. 23 §31066% Tit. 32 §9773Beer 26.5¢/gal. if <6% and 55¢/gal. if 6-8%;Wine 55¢/gal.; Spirits and fortified wine 25% of gross revenues Tit. 7 §§421, 422NA
VIRGINIA3.5% §58.1-6031.25 mills/cigarette §§58.1-100117.5¢ §58.1-22173.5% §58.1-604Beer 25.65¢/barrel, 2¢/bottle <7 oz., 2.65¢/bottle 7-12 oz., 2.22 mills/oz./bottle >12 oz.; Wine 40¢/liter §§4.1-234, 236Boxing and wrestling: <$100,000 gross receipts 5% plus 2.5% of remainder; Horseracing: 1 + 3% of the pool §§54.1-833, 59.1-392
StateSales TaxCigarette TaxGasoline Tax per GallonUse TaxLiquor TaxGambling Tax
WASHINGTON6.5% §82.08.02015.5 mills/cigarette §§82.24.020, 02737¢ §82.36.0256.5% §82.12.020Beer $8.08/barrel; table wine 22.67¢/liter, fortified wine 45.11¢/liter; Additional tax on sales of wine and beer at 7% of basic tax rates §§66.24.210, 290; 82.02.030Counties, cities, city-counties, and towns may tax within its jurisdiction §9.46.110
WEST VIRGINIA6% §11-15-355¢/pack of 20 cigarettes §11-17-320.5¢ §11-14C-56% §11-15A-2Nonintoxicating beer $5.50/barrel; Intoxicating liquor 5% of purchase price §11-16-13, 60-3A-21Racing: $150 250 daily tax and municipalities may levy tax; 1.48% of pool §19-23-12, 1, 10
WISCONSIN5% §§77.5238.5 mills/cigarette §139.31(1)Varies annually according to formula §§78.01,.015, .0175% §77.53Beer $2/barrel; Wine <14% 6.605¢/liter, 14-21% 11.89¢/liter; All other 85.86¢/liter; administrative fee on all beverages >21% 3¢/gal.;Other intoxicating liquor 85.86¢/liter §§139.02, 03Racetrack admission 50¢/person; 182/3% total amount wagered §§562.08, 562.065
WYOMING4% §39-15-1046¢/cigarette §39-18-10414¢ §39-17-1044% §39-16-104Beer .5¢/liter;Wine .75¢/ml.; Spirits 2.5¢/100 ml. §12-3-101NA