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Taxing beer consumption

CPA Tom Walpole discussed the varying rates of taxation on beer Monday on News 8 at Sunrise.
CPA Tom Walpole discussed the varying rates of taxation on beer Monday on News 8 at Sunrise.

Monday's St. Patrick's Day holiday ranks second on the list of Top 10 Drinking Holidays:

1. New Year's Eve
2. St. Patrick's Day
3. Thanksgiving
4. Cinco de Mayo
5. Purim
6. Derby Day
7. 4th of July
8. Halloween
9. Mardi Gras
10. Super Bowl Sunday

The tax on alcohol consumed on St. Patrick's Day helps boost the coffers of many states.  The state that collects the most alcohol related taxes annually is Texas with a whopping $792 million.  Here are the Top 5 States with Revenue from Alcohol Tax:

1. Texas $792 million
2. Florida $590 million
3. Pennsylvania $331 million
4. California $323 million
5. North Carolina $309 million

New York is not listed among the top five for alcohol tax collected.  Nor is it among the leaders when it comes to tax collected per vat of beer.  Alaska leads the way at $1.07 per gallon.  Here are the highest beer taxes by state:

1. Alaska $1.07 per gallon
2. Alabama $1.05 per gallon
3. Georgia $1.01 per gallon
4. North Carolina $0.99 per gallon
5. Hawaii $0.93 per gallon

New York is far down on the list at $0.14 per gallon (New York City adds another $0.12 per gallon).  Although it doesn't collect as much tax per gallon, New York makes up for it by the quantity of beer sold.  The uptick of craft breweries are also helping states increase their alcohol related tax revenue.

All that said, there's no comparison to Ireland, which has a value added tax rate of 21 percent.  Its per gallon tax on a vat of beer is $4.10, almost four times the highest U.S. state. 
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