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Consumer Taxes laws - Information on the law about Consumer Taxes

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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 tax's revenue-raising function. For example, tobacco-producing states do not have cigarette taxes (Kentucky, 3¢, North Carolina, 5¢, and Virginia, 2.5¢) that are as high as those in states that, for various reasons, attempt to inhibit smoking (Maine, $1.00, Arizona, $1.18, Michigan, $1.25 and New Jersey $2.05).

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 44: Consumer Taxes

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
ALABAMA 4% §40-23-2 8.25 mills/cigarette §40-25-2 16¢ §§40-17-31, 220 4% §§40-23-61, 63 Liquor 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¢/liter NA
ALASKA None 38 mills/cigarette plus 12 mills/cigarette ($1/pack of 20) §43.50.190, §43.50.090 8¢ §43.40.010 None Beer 35¢/gal.; Wine and spirits ≤21% alcohol $2.50/gal., >21% $12.80/gal. §43.60.010 NA
ARIZONA 5.6% §42-5010 $1.18/pack of 20 §42-3052 18¢ §28-5606 Same as sales for same type of activity §42-5155 Beer 16¢/gal.; Wine <24% 84¢/gal., >24% 25¢/gal.; Spirits $3.00/gal. §42-3052 NA
ARKANSAS 6% §§26-52-301, 302 $15.75 per thousand cigarettes §26-57-208 21.5¢ §§26-55-205, 1002 5.125% §§26-52-302; 26-53-106, 107 Beer 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
CALIFORNIA 5.75% Rev. & Tax §§6051 to 6051.4 18.5 mills/cigarette plus 50¢/pack of 20 Rev. & Tax §§30101, 30123 18¢ Rev. & Tax §7351 5.75% Rev. & Tax §§6201 to 6201.4 Beer $6.20/barrel; Still wines 20¢/gal.; Sparkling wine 30¢/gal.; Spirits $3.30 to $6.60/gal. Rev. & Tax §§32151, 32201, 32220 NA
COLORADO 2.9% §39-26-106 10 mills/cigarette §39-28-103 22¢ §39-27-102 2.9% §39-26-202 Beer 8¢/gal.; Wine 7.33¢/liter (12.33¢/liter Colorado wines); Spirits 60.26¢/liter §§12-47-503 Not to exceed 40% of adjusted gross profits §12-47.1-601
CONNECTICUT 6% §§12-408 75.5 mills/cigarette §12-316 25¢ §12-458 6% §§12-411 Beer $6.00/barrel; Still wine <21% 60¢/gal., >21% and sparkling wine $1.50/gal.; Spirits $4.50/gal. §12-435 NA

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
DELAWARE $75 annual fee plus 0.240% gross receipts Tit. 30 §2702 12 mills/cigarette Tit. 30 §5305 23¢ Tit. 30 §5110 1.920% Tit. 30 §4302 Beer $4.85/barrel; Wine 97¢/gal.; Spirits <25% $3.64/gal., >25% $5.46/gal. Tit. 4 §§581 NA
DISTRICT OF COLUMBIA 5.75% §47-2002 5¢/cigarette §47-2402 20¢ §47-2301 5.75% §47-2202 Beer $2.79/barrel; Wine <14% 30¢/gal, >14% 40¢/gal.; Sparkling wine 45¢/gal.; Spirits $1.50/gal. §§25-124, 138 NA
FLORIDA 6% §§212.05 16.95 mills/cigarette §210.02 4¢ §206.41 6% §§212.05 Beer 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; 565.12 NA
GEORGIA 4% §48-8-30 37¢/pack of 20 cigarettes §48-11-2 7.5¢ §48-9-3 4% §48-8-30 Beer $10/barrel, in bottles or cans 4.5¢/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, 3-5-80 NA
HAWAII 4% §237-13 6.5¢/cigarette §245-3 16¢ + additional county rates §243-4, 5 4% §238-2 Draft 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 semiannually NA
IDAHO 6% §§63-3619 57¢/pack of 20 cigarettes §63-2506 25¢ §§63-2405 6% §§63-3621 Beer $4.65/barrel; Wine 45¢/gal.; 15% of price per unit on all goods sold in state dispensary 23-217, 1319, 1008 NA

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
ILLINOIS 6.25% 35 ILCS 120/2-10 49 mills/cigarette 35 ILCS 130/2 19¢ 35 ILCS 505/2 6.25% 35 ILCS 105/3-10 Beer 18.5¢/gal.; Wine 73¢/gal.; Spirits $4.50/gal. 235 ILCS 5/8-1 Riverboat gambling tax $4 per person admitted; wagering tax 15 to 50% adjusted gross receipts 230 ILCS 10/12, 230 ILCS 10/13
INDIANA 6% §§6-2.5-2-2 55¢/pack of 20 §6-7-1-12 18¢ §6-6-1.1-201 6% §§6-2.5-3-3 Beer 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; 7.1-4-5-1 Riverboat gambling tax of 20% adjusted gross receipts §4-33-13-1
IOWA 5% §422.43 18 mills/cigarette §453A.6 20.3¢ §452A.3 5% §423.2 Beer $5.89/barrel; Wine $1.75/gal. §§123.136; §§123.183 Excursion 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
KANSAS 5.3% §79-3603 79¢/pack of 20 cigarettes §79-3310 24¢ §§79-34, 141 5.3% §79-3703 Beer 18¢/gal.; Wine <14% 30¢/gal., >14% 75¢/gal.; Spirits $2.50/gal. (additional taxes for on-premises consumption) §§41-501; 79-4101; 79-41a02 NA
KENTUCKY 6% §§139.200 3¢/pack of 20 cigarettes §138.140 15¢ (9% of average wholesale price plus supplementary highway user motor fuel tax, computed quarterly) §138.220 6% §§139.310 Beer $2.50/barrel; Wine 50¢/gal.; Spirits $1.92/gal. §§243.720 NA

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
LOUISIANA 4% §§; 47:302, 331 1.8¢/cigarette §47:841 20¢ §§47:711, 820.1 4% §§; 47:302, 331 Beer $10/barrel; Still wine <14% 3¢/liter, 14-24% 6¢/liter, >24% 42¢/liter; Sparkling wine 42¢/liter; Spirits 66¢/liter §§26:341, 342 NA
MAINE 5% Tit. 36 §§1811, 1861 50 mills/cigarette Tit. 36§4365 22¢ Tit. 36 §2903 5% 36 §1861 Liquor monopoly state; Beer 25¢/gal.; Wine 40¢/gal.; Sparkling wine $1.00/gal.; Spirits: Commission must sell at price that will produce state liquor tax sufficient to pay all gov't liquor-related expenses, cost plus $1.25/proof gal. Tit. 28-A §§1651, 1652, 1703 NA
MARYLAND 5% Tax-Gen. §11-104 $1.00/pack of 20 cigarettes Tax-Gen. §12-105 23.5¢ Tax-Gen. §9-305 5% Tax-Gen. §11-104 Beer 9¢/gal.; Wine 40¢/gal.; Spirits $1.50 gal.; Tax-Gen. §5-105 NA
MASSACHUSETTS 5% Ch. 64H §2 75.5 mills/cigarette Ch. 64C §6 21¢ (19.1% of average price, but minimum cannot be less than 21¢/gal.) Ch. 62C§3A; Ch. 64A§1; Ch. 64E§4; Ch. 64F§3 5% Ch. 64I §2 Beer $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 §21 NA
MICHIGAN 6% §205.52 62.5 mills/cigarette §§205.427 19¢ §§207.1008 6% §205.93 Beer $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; 436.2205 18% of gross revenue of casino §432.213

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
MINNESOTA 6.5% 297A.62 24 mills/cigarette §297F.05 20¢ §296A.07 6.5% 297A.63 Beer 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.04 Horseracing 6% of net receipts plus 1% of gross bets §240.15; Gambling 8.5% other than pull tabs and tip boards §297E.02
MISSISSIPPI 7% 27-65-17 .9¢/cigarette §27-69-13 18¢ §27-55-11 Same rate as sales tax 27-67-5 Beer, light wine 42.68¢/gal.; Wine 35¢/gal.; Sparkling wine $1/gal.; Spirits $2.50/gal. A 27.5% markup is imposed on all alcoholic beverages sold by the Alcoholic Beverage Control Division §§27-71-7, 201, 307; 67-1-41 3% state gambling tax §27-7-15
MISSOURI 4.225% §144.020; Mo. Const. Art. IV §§43(a) and 47(c) 8.5 mills/cigarette §149.015 17¢ §142.803 Same rate as sales tax §144.610 Beer $1.86/barrel; Wine 30¢/gal.; Spirits $2/gal. §§311.550 Riverboat gambling tax: $2.00 per person admitted §313.820
MONTANA None 70¢/pack of 20 cigarettes §16-11-111 27¢ §15-70-204 None Liquor monopoly state; Beer $4.30/barrel; Wine 27¢/liter; Spirits 13.8% retail selling price for companies <200,000 gal./year nationwide, 16% for >200,000 gal./year §§16-1-401, 404, 406, 411; 16-2-301 15% gross income from video gambling machines; 1% gross receipts for horse-racing §§23-5-610, 23-4-202
NEBRASKA 5.5% (Legislature is required to set rate each year) §§77-2701.02, 2715.01 64¢/pack of 20 cigarettes §77-2602 24.6¢ §§66-4, 105; 66-4,144; 66-4,145; 66-4,146; 66-489 5.5% §§77-2701.02, 2715.01 Beer 31¢/gal.; Wine <14% 75¢/gal., >14% $1.35/gal.; Spirits $3.75/gal.; Wine from farm wineries 6¢/gal. §53-160 5% gross receipts for boxing or wrestling matches; 0.4% gross sum wagers for admission tax for horse-racing §§81-8, 135, 2- 1208

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
NEVADA 6.5% §§372.105; 374.110; 377.040 40 mills/cigarette §370.165 23¢ §§365.175, 180, 190, 192 6.5% §§372.185; 374.190; 377.040 Beer 16¢/gal.; Wine <14% 70¢/gal., 14-22% $1.30/gal., >22% $3.60/gal. §369.330 Gross revenues <$50,000/mo. 3%; $50,000-134,000 4%; >$134,000 6.25% §§463.370
NEW HAMPSHIRE None 52¢/pack of 20 cigarettes §78:7 18¢ §260:32 None 30¢/gal. on all beverages sold at retail; Domestic wine 5% of gross sales §§178:6, 28, 30 1 or 2% of total contribution for racing; 5% gross receipts for boxing or wrestling §§284:23, 285:14
NEW JERSEY 6% §54:32B-3 10.25¢/cigarette §54:40A-8 10.5¢ §54:39-27 6% §54:32B-6 Beer 12¢/gal.; Wine 70¢/gal.; Spirits $4.40/gal. §54:43-1 8% of gross revenues §5:12-144
NEW MEXICO 5% §7-9-4 4.55¢/cigarette §7-12-3 17¢ §7-13-3 5% §7-9-7 Beer 41¢/gal.; Wine 45¢/liter; Spirits $1.60/liter §7-17-5 20% net take to purse for race track §60-2E-47
NEW YORK 4% Tax §§1105 $1.50/pack of 20 cigarettes §471 8¢ §§284, et seq. 4% §§1110 Beer 11¢/gal.; Still and sparkling wine 18.93¢/liter/gal. (natural); Spirits <24% 67¢/gal.; other $1.70/liter §424 4% admission tax for horse racing; 5% of pool on regular bets §§406, 229
NORTH CAROLINA 4.5% §105-164.4 2.5 mills/cigarette §105-113.5 17.5¢ §105-449.80 4.5% §105.164.6 Beer 53.177¢/gal. Wine 21¢/liter unfortified, 24¢/liter fortified; Spirits 25% retail §§105-113.80 NA
NORTH DAKOTA 5% §§57-39.2-02.1, 03.2 5 mills/cigarette §§57-36-06 21¢ §57-43.1-02 5% §§57-40.2-02.1 Beer 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. §5-03-07 2.5% 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

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
OHIO 6% §5739.025 27.5 mills/cigarette §§5743.02, 023 2¢ + variable cents per gallon rate §§5735.25; 5735.05 Same rate as sales tax §5741.02 Beer $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; 4305.01 Horseracing wagers: <$200,000, 1%; $200,000–300,000, 2%; $300,000–400,000, 3%; >$400,000, 4% §3769.08(B)
OKLAHOMA 4.5% Tit. 68 §§1354 11.5 mills/cigarette Tit. 68 §§302 16¢ Tit. 68 §§500.4 4.5% Tit. 68 §1402 Beer <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; 553 Racing: admission tax 10%; 2% all money wagered; Boxing: 5% gross receipts Tit. 3A§§207, 205-6, 516
OREGON None 64 mills/cigarette §323.030 24¢ §319.020 None Beer $2.60/barrel; Wine <14% 67¢/gal., 14-21% 77¢/gal.; 473.030 NA
PENNSYLVANIA 6% Tit. 72 §§7202 5¢/cigarette Tit. 72 §8206 12¢ 75 §9004 6% Tit. 72 §§7202 Beer $2.48/barrel; Wine.5-24%.005/unit proof/gal.; Spirits $1.00/gal. 72 §9003; 47 §795 Horse racing: admission tax 15% admission price; 1.5% wagers retained §§4-325.222, 325.208
RHODE ISLAND 7% §§44-18-18, 20 85.5 mills/cigarette §44-20-12 30¢ §31-36-7 7% §44-18-20 Made 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; 3-10-17 3-6% of total money wagered §§41-4-3, et seq.
SOUTH CAROLINA 5% §§12-36-910 3.5 mills/cigarette §12-21-620 16¢ §§12-28-310 5% §§12-36-1310 Beer .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, 460 NA

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
SOUTH DAKOTA 4% §10-45-2 26.5 mills/cigarette §§10-50-3; 10-50-10 22¢ §10-47B-4 Same general rates as sales tax §10-46-2 Beer $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; 35-5-6.1 8% of adjusted gross proceeds; May be decreased or increased by Commission on Gaming from 5-15% §42-7B-28
TENNESSEE 7% 67-6-202 10 mills/cigarette plus 0.05¢/pack for dealers or distributors 20¢ 67-3-1301 7% 67-6-209 Beer $4.29/barrel; Wine $1.21/gal.; Spirits $4.40/gal. §§57-3-302; 57-5-201 NA
TEXAS 6.25% Tax §§151.051 $20.50/thousand cigarettes Tax §154.021 20¢ Tax §153.102 6.25% Tax §§151.101 Beer $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; 3% prize Occ. Code §2001.501,502
UTAH 4.75% §59-12-103 3.475¢/cigarette §§59-14-204 24.5¢ §59-13-201 4.75% §59-12-103 Beer $12.80/barrel; 13% retail purchase price all other §§59-15-101; 59-16-101 Boxing Promoters: 5% total gross receipts §58-63-102
VERMONT 6% Tit. 32 §9771 46.5 mills/cigarette Tit. 32 §7771 19¢ Tit. 10 §1942; Tit. 23 §2306 6% Tit. 32 §9773 Beer 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, 422 NA
VIRGINIA 3.5% §58.1-603 1.25 mills/cigarette §§58.1-1001 17.5¢ §58.1-2217 3.5% §58.1-604 Beer 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, 236 Boxing and wrestling: <$100,000 gross receipts 5% plus 2.5% of remainder; Horseracing: 1 + 3% of the pool §§54.1-833, 59.1-392

Table 44: Consumer Taxes—Continued

State Sales Tax Cigarette Tax Gasoline Tax per Gallon Use Tax Liquor Tax Gambling Tax
WASHINGTON 6.5% §82.08.020 15.5 mills/cigarette §§82.24.020, 027 28¢ §82.36.025 6.5% §82.12.020 Beer $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; 82.02.030 Counties, cities, city-counties, and towns may tax within its jurisdiction §9.46.110
WEST VIRGINIA 6% §11-15-3 55¢/pack of 20 cigarettes §11-17-3 20.5¢ §11-14-3 6% §11-15A-2 Nonintoxicating beer $5.50/barrel; Intoxicating liquor 5% of purchase price §11-16-13 60-3A-21 Racing: $150–250 daily tax and municipalities may levy tax; 1.4–8% of pool §19-23-12, 1, 10
WISCONSIN 5% §§77.52 38.5 mills/cigarette §139.31(1) Varies annually according to formula §§78.01,.015, .017 5% §77.53 Beer $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, 03 Racetrack admission 50¢/person; 1–82/3% total amount wagered §§562.08, 562.065
WYOMING 4% §39-15-104 30 mills/cigarette §39-18-104 14¢ §39-17-104 4% §39-16-104 Beer .5¢/liter; Wine .75¢/ml.; Spirits 2.5¢/100 ml. §12-3-101 NA
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