States and localities can tax particular goods more heavily than others. These elevated taxes targeting specific products are known as excise taxes. The magnitude of such taxes vary by product and location. State and local governments have wide latitude in devising these tax schemes and can use excise taxes for many different purposes. For example, elevated taxes on cigarettes are designed to deter smoking, while elevated taxes on gasoline are used to raise additional revenue for infrastructure maintenance.
Now, ask yourselves, how much should my state make when I buy beer? Does that amount vary greatly by state and if so, why?
Believe it or not, a resident of the highest tax state will pay $1.27 more per gallon of beer than residents of the lowest tax state. That’s $1.27 more for every 12 pack of beer you buy. Check out the map below to find out how much your state charges.