Friday, October 5, 2012

Yaaaay - TN is number one in beer taxes yet again...

From the Beer Institute:

Total taxes on beer (2011 data)


  1. TN - $37.00 per barrel (#1 in US)
  2. AL - $32.65 per barrel (#3 in US)
  3. AR - $7.51 per barrel (#23 in US)
  4. GA - $30.73 per barrel (#4 in US)
  5. MS - $13.23 per barrel (#11 in US)
  6. KY - $23.96 per barrel (#6 in US)
  7. NC - $19.13 per barrel (#9 in US)
  8. VA - $8.69 per barrel (#21 in US)


Why'd I pick those states?  They are all bordering TN.  Once again, TN has the highest beer taxes in the country, and the gap between TN and the rest of the country continues to grow.  Why?  Because TN has a 17% wholesale tax on beer.  Since 1954, TN has increased its effective tax rate on beer per gallon sold, without ever having to take a vote to increase taxes on beer.  Just think of the uproar among blue-collar voters, if every year our legislature voted to increase taxes on beer.  Yet, by putting a 17% wholesale tax on beer, that's exactly what has happened.  Inflation and rising prices of raw materials forces brewers to raise their prices, and then - this 17% TAX MULTIPLIES OUR PRICE INCREASE BY A FACTOR OF 1.17!  A modest price increase at the brewery level turns into huge price increase at the retail level.

The TN Craft Brewers Guild is working to change this.  How can you help?  Stay tuned.  When the legislature is back in session in January, we'll be asking for your help.

Linus Hall
TN Craft Brewers Guild
Yazoo Brewing Co

1 comment:

Unknown said...

We at Studio Brew located in North East TN. want to do our part in helping as well. As new members of the TN. Brewers Guild we have reached out several times to the Guild and to the State. This is an uphill battle and it will take all of us Brewers, Distributors and most of all those who love & support craft beer.