Categorized under: beer laws


Here’s some news related to the Financial crisis, which could have major effect on the Craft Beer Industry.

Please let us know how you feel about this.


Drink Craft Beer and so no to more taxes!!

The 6.25% Sales Tax on Beverage Alcohol‏ (message from a local retailer)

Governor Deval Patrick is trying to convince the legislature to not only increase the existing sales tax from 5% to 6.25% but to apply it to many new sales categories. One of those proposed categories is Beverage Alcohol which is already heavily taxed on the state and federal levels in the form of an excise tax that is approximately 39% of the wholesale cost on a bottle of vodka. This tax is paid for by the wholesaler and passed on to us the retailer along with the wholesaler’s mark-up, which we then mark-up to reach our retail price level.

A sales tax at the point of purchase would then tax you the consumer for an item that has already been taxed and marked-up. It is a tax on a tax that we are all too familiar with these days. Please help us stop this unnecessary, redundant taxation, e-mail your state representative and senator and tell them you do not support this initiative.

The link to contact your local politician is:

  • Beverage alcohol is already taxed at a rate greater than 5% through a combination of State and Federal Excise taxes, some of it far more.
  • The expected revenue will not materialize. Massachusetts already loses beverage alcohol sales to New Hampshire which generally has lower spirits prices and no deposit on beer containers. Massachusetts also gains tax revenue from Connecticut and Rhode Island, which do have sales tax. Any tax increase in Massachusetts will mean more Massachusetts dollars going to New Hampshire and less coming in from Connecticut and Rhode Island.
  • What increased tax revenue that does come in will be at least partially offset by lost jobs in the retail, restaurant, wholesaler, and supplier workforces. From clerks to union drivers, to management, there will be a workforce reduction in Massachusetts at a time when our leaders in the Federal government are trying to achieve the exact opposite.

Monies collected will not really go to health care and support programs. Massachusetts said that about the cigarette tax and they have continually raided the fund to go to general overhead and other projects. In fact the American Lung Association gave Massachusetts an A for cigarette taxation in 2008, but only a C for having adequate cessation programs, and an F for tobacco prevention and control spending. Still think the money will go where they say it will?

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