Why is liquor so expensive in alabama

SalesTaxHandbook visitors qualify for a free month by signing up via our partner program here:. Learn More Now! Toggle navigation. Alabama Liquor, Wine, and Beer Taxes. Alabama has some of the highest state taxes on alcohol in the United States. Ranked 5th highest. If you prefer beer, your contributions to the state are much easier to explain and help educate Alabama's children. Most of the laws governing these complicated funding streams were passed decades ago.

Dedicating certain revenues to certain agencies and funds made these taxes politically palatable, and that's understandable. Now, however, they restrict the state's budget flexibility.

For instance, if the state were to sell a record bottle of liquors in a year, it would be difficult to allocate the surplus revenue to a needed destination in the following fiscal year. Are you interested in how your tax dollars are split up among state agencies and funds? Which ones would you like to be explained? Do you think it's better this way or would you like our legislators to have more budget flexibility?

I have my doubts the package stores would lower their prices that much, if at all. You wouldn't see the tax increase because retailers wouldn't be paying as much for the product. ABC isn't selling to retailers at a loss. Eliminating their markup should balance out any tax increase should one even be needed.

There's no need to think about anything. The numbers are easy to find. ABC annual report that gives their financial information. Yes the stores make money but not as much as you might think.

They operate roughly stores. The real revenue comes from beer and wine taxes. In a nutshell, the state spends a whole lot of money for a comparatively small return. Moving to a tax-only model should see more money for the state at a lower cost to the consumer.

Particularly when it comes to efficiencies of government vs private industry in the retail marketplace. Jump to page. Would you consider telling us more about how we can do better? June 22, Morgan Scarboro. Was this page helpful to you? Thank You!