Why You Pay More in Some States: Beer Taxes

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shutterstock_131875520One of the realities of our system is that there is a wide variance in the cost of some items when you cross state lines.

Because different states levy different sales tax amounts, and because there are excise taxes attached to certain items as well. Among those items is beer.

Sin Taxes: Where Beer Costs More

Many states impose what are known as “sin taxes” on items like beer and cigarettes. That means that if you cross state lines you could save money — or spend more.

CNN Money reports that the state with the lowest the lowest tax on beer is Wyoming, with a tax of $0.01 on each six pack. That’s even lower than Missouri, where resides Anheuser-Busch ($0.03 cents per six pack). The highest beer taxes can be found in Tennessee, where the state levies $0.66 per six pack. Why? The assumption is that Tennessee is whisky country.

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You might also be surprised to find that some states add extra charges for bottle fees. Some brewers also pay more in taxes, which means that the costs are usually passed on to consumers. So, you might be paying a lot more for your beverage of choice, depending on which state you buy it in.

Why do states tack on these charges? In many cases, the revenue goes toward helping to pay for services related to the beer, such as costs associated with drunk driving, or health issues.

If you want to see how your state stacks up in terms of beer taxes, CNN Money offers an interactive map.

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Miranda is a freelance writer and professional blogger specializing in financial topics. Her work has appeared in numerous media, online and offline. Her blog is Planting Money Seeds.