Everyone’s least favorite Uncle, Uncle Sam is calling today. If you haven’t already done so, you only have a couple more hours to file your taxes for the year 2024. I just finished mine a couple of hours ago, but I always wait until the last minute to do my taxes. I am the ultimate procrastinator when it comes to tax season.
Speaking of taxes, I figured today would be a great day to try and break down the way the State of Michigan levies taxes on alcoholic beverages of all kinds. Michigan is known for having some of the higher tax rates in the nation on alcoholic beverages across the spectrum of various different concoctions.
We all know that alcoholic beverages, whether served on-premise or for off-site consumption are subject to the Statewide 6% sales tax that is included on most goods and services that you receive throughout the State. Some exceptions to the 6% sales tax include food, non-carbonated beverages, prescription drugs, feminine hygiene products and various other items are exempt from the 6% Statewide tax.
In addition to the normal 6% sales tax, there are additional sin taxes added to alcoholic beverages. In the case of alcohol, the taxes that the State levies varies based upon the type of beverage that is being sold.
– Distilled Spirits are taxed at a rate of 10.8 percent of the retail price. This is a very high rate of taxation compared to the rest of the nation.
– Wine is taxed at a rate of 13.5 percent if below 16% ABV and 20 percent if it is above 16% ABV.
– Beer is taxed at a rate of $6.30 cents per barrel.
– Mixed Spirit drinks are taxed at a rate of 30 cents per liter.
– Wine for religious ceremonies is the only kind of alcohol that is tax exempt.
Rates of taxation do vary based upon sales for on premise consumption vs. off premise consumption. If you own a bar, restaurant or any form of retail outlet, your taxes may vary from the rates listed above.
In summary, not only do we pay taxes on everyday purchases and every April 15th, but everytime we drink a beer or alcoholic beverage of any sort, the government is there taking their slice of the pie from us. It sucks that I take every April off from drinking because after paying my taxes today, I wish I could pay more taxes by purchasing an alcoholic beverage to wash the taste of paying my taxes out of my mouth. Alas, I will have to wait until May First to pay taxes on alcoholic beverages again. Happy tax day everyone. Cheers!
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