When it comes right down to it, the taxes applied to a good or service ultimately will affect an area’s cost of living and along with it the price of housing. The folks over at the Tax Foundation remind us that the federal government collects an excise tax on beer (which ranges from $0.11 to $0.58 per gallon based on production, location, and quantity) as well as all 50 states and the District of Columbia. According to their research, most states charge the retailer directly for the excise tax – versus tacking it on to the bill like sales tax. However consumers ultimately end of paying those taxes in the form of higher prices. Indeed….
“State excise taxes are often levied on the manufacturer, wholesaler, or retailer of beer. The states collect these excise taxes according to the quantity of beer sold (usually expressed as a rate of dollars per gallon). In these cases, 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.”
Click here to read the full report at the Tax Foundation.
