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Coffee Talk
Business Observer Monday, Aug. 10, 2020 1 year ago

Florida gulps down high wine taxes

State lags only Kentucky and Alaska in wine levy per gallon.

Some Florida oenophiles could be whining in their wine when they figure out the tax rate they are paying on a bottle of vino.

That’s because the state has the third-highest excise tax on wine in the country, at $2.25 a gallon, according to a new report from the Tax Foundation. Only residents in Kentucky, at $3.30 per gallon (a shot across the bow at bourbon, perhaps?) and Alaska, at $2.50 per gallon, pay a higher tax, the report shows, using January 2020 data. The top five for highest taxes also includes Iowa, and a tie between Alabama and New Mexico.

Two states known nationally for high taxes, meanwhile, California and New York, levy barely a drip of a tax on wine. New York, joined by Kansas, collects $0.30 cents a gallon and California, along with Texas, tax wine at $0.20 a gallon.  

States, the report posits, tend to tax wine at a higher rate than beer but a lower rate than distilled spirits, mostly due to wine’s mid-range alcohol content.  A volume-based wine tax is the most common, the report ads, but many states impose additional layers of taxes. Those vary based on wine type, container size, alcohol content, place of production and place of purchase, among other factors.

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