Lena Savoie
Alcoholic beverages in the United States are subject to excise taxes, which are taxes applied on a per-unit basis, usually per gallon for liquids. These taxes are implemented by both state and federal governments and are typically passed on to the consumer in the form of raised alcohol prices. New Hampshire, which does not have a general sales tax, levies a flat 30-cent tax per gallon of alcoholic beverages sold at state-owned retail shops, or 5% of domestic wine sales. Excise taxes on wine are paid by vendors, in addition to federal excise taxes. Direct shippers of wine must pay an 8% markup fee on the retail price to the New Hampshire Liquor Commission.
| Characteristics | Values |
|---|---|
| Sales tax on alcohol | No sales tax |
| Excise tax on alcohol | Yes, on wine, beer, and liquor |
| Federal excise tax on alcohol | Yes |
| Direct-to-consumer (DTC) shipments tax | Yes, on top of sales tax |
| "Markup" taxes | Yes, the retail value is multiplied by a percentage rate |
| Excise taxes on DTC shipments | Yes, traditional "gallonage"-based excise taxes |
| Tax on wine | No excise or sales tax, but an 8% markup fee on the retail price |
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What You'll Learn
New Hampshire does not have a general sales tax
New Hampshire is an "alcoholic beverage control state", meaning the sale of liquor and spirits is state-controlled. Liquor sales are only permitted in state alcohol stores, also called "ABC Stores". The state earns revenue from these sales, so there is no need to apply an additional excise tax on liquor. The price of all alcohol sold in New Hampshire includes federal alcohol excise taxes, which are generally passed on to the consumer in the beverage's price.
The New Hampshire Liquor Commission (NHLC) regulates the sale of alcohol in the state and has been named the nation's top control state. It is often cited as one of the most progressive, customer-focused, and profitable. The NHLC has raised over $4 billion in net profits to support critical state services.
Direct shippers of wine to consumers in New Hampshire must pay an 8% markup fee on the retail price of the wine shipped, but the state does not impose an excise or sales tax on wine. Direct shippers are required to register for sales tax in most states, independent of economic or physical nexus. However, New Hampshire does not have a sales tax, and has some of the lowest gasoline taxes in the country.
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Excise taxes are applied on a per-unit basis
New Hampshire does not have a general sales tax. However, excise taxes are applied to alcoholic beverages like wine, beer, and liquor, on top of federal excise taxes. Excise taxes are applied on a per-unit basis, typically per gallon for liquids. For example, a flat tax of 30 cents is levied on every gallon of alcoholic beverages sold at state-owned retail shops, or 5% on domestic wine sales. These taxes are collected from the merchant and are usually passed on to the consumer in the form of higher alcohol prices.
Excise taxes are separate from general sales taxes and are intended to discourage the consumption of certain goods, such as alcohol, tobacco, and gasoline, due to public health concerns. The revenue generated from these "sin taxes" is often used to fund public outreach programs related to the specific product being taxed, such as tobacco awareness campaigns. In the case of gasoline taxes, the revenue helps pay for state highway maintenance.
In the case of alcohol excise taxes in New Hampshire, the state earns revenue from the sale of alcoholic beverages, so no additional excise tax is applied to liquor. However, excise taxes are applied to beer, wine, and liquor at the federal level. These federal excise tax rates vary depending on the percentage of alcohol in the product. For example, the tax on beer is adjusted based on the alcohol content, with a higher tax rate for higher alcohol percentages.
While New Hampshire does not impose an excise tax on wine, direct shippers of wine to consumers in the state must pay an 8% markup fee on the retail price to the NH Liquor Commission. This markup fee is similar to the "markup" taxes applied by several states, where the retail value of alcohol is multiplied by a percentage rate. These markup taxes are often passed through to the consumer in the final price of the beverage.
Overall, while New Hampshire does not have a general sales tax, it does apply excise taxes to alcoholic beverages, specifically on a per-unit or per-gallon basis. These excise taxes are implemented to generate revenue for the state and discourage excessive consumption, with the funds being used for various public programs and infrastructure maintenance.
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Alcohol excise taxes are passed on to the consumer
New Hampshire does not impose a sales tax on alcohol. However, excise taxes on alcohol are applied in addition to (or instead of) sales taxes. Excise taxes are collected from the merchant selling the alcohol, but they are typically passed on to the consumer in the form of higher alcohol prices. These excise taxes are implemented on both the state and federal levels.
In New Hampshire, the sale of liquor and spirits is state-controlled, and liquor sales are only permitted in state-owned alcohol stores, also known as "ABC Stores". The state profits from the sale of alcoholic beverages, eliminating the need for an additional excise tax on liquor. Nevertheless, the state does levy a flat 30-cent tax per gallon of alcoholic beverages sold at these state-owned retail shops or 5% of domestic wine sales.
Federal excise taxes on alcohol are also included in the price of beverages sold in New Hampshire. These taxes are collected from the brewer or distiller by the Alcohol and Tobacco Tax and Trade Bureau and are generally passed on to the consumer. Excise taxes on alcohol are typically applied on a per-unit or per-gallon basis, and they are separate from general sales taxes.
While some states have "markup" taxes, where the retail value of alcohol is multiplied by a percentage rate, New Hampshire does not impose an excise or sales tax on wine shipped directly to consumers. Instead, direct shippers must pay an 8% markup fee on the retail price of wine shipped to the NH Liquor Commission.
Excise taxes on alcohol are often used as a tool to discourage excessive consumption due to public health concerns. The revenue generated from these "sin taxes" is directed towards funding public outreach programs, such as tobacco awareness campaigns.
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Direct shippers must pay an 8% markup fee on wine
New Hampshire does not have a general sales tax. However, excise taxes are applied to alcoholic beverages in the state, and these are generally passed on to the consumer in the form of raised alcohol prices. Excise taxes are applied per unit, usually per gallon for liquids.
Direct shippers of wine to New Hampshire consumers must pay an 8% markup fee on the retail price of wine shipped to consumers. This is paid to the New Hampshire Liquor Commission. This is a "`markup` tax", where the retail value of the alcohol is multiplied by a percentage rate. This is separate from any excise taxes, which are also usually applied to DTC shipments.
To ship wine directly to consumers in New Hampshire, a Direct Shipper Permit is required. Wine must only be shipped to consumers over 21 years of age in packages clearly marked "Alcoholic Beverages, adult signature (over 21 years of age) required". Direct shippers must also submit a copy of their TTB winery permit and a copy of their Certificate of Authority from their state of domicile Secretary of State or governing authority.
The rules and regulations for shipping alcohol to New Hampshire can be complex and are subject to change. It is important to check the latest information to ensure compliance with the law.
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New Hampshire is an Alcoholic Beverage Control State
New Hampshire is one of 17 "control states" in the US where the government directly controls the distribution and regulation of alcoholic beverages. The New Hampshire State Liquor Commission, also known as the New Hampshire State Alcohol Beverage Commission, regulates the sale of alcohol in the state. This means that the sale of liquor and spirits is state-controlled, and liquor sales are only permitted in state-owned alcohol stores, also called "ABC stores".
The state earns revenue by selling alcoholic beverages, so there is no need to apply an additional excise tax on liquor. However, excise taxes are applied on a per-unit basis, generally per gallon for liquids, and are collected from the merchant who sells the alcohol. Excise taxes are usually passed on to the consumer in the form of raised alcohol prices. New Hampshire levies a flat 30-cent tax per gallon of alcoholic beverages sold at state-owned retail shops, or 5% on domestic wine sales. Federal excise taxes are also included in the price of alcohol sold in New Hampshire.
The New Hampshire Liquor Commission's Division of Enforcement and Licensing is dedicated to enforcing state liquor laws and educating the public, consumers, and students about the dangers of alcohol consumption, particularly regarding underage drinking and impaired driving. The commission also controls all alcohol-related activities in the state, including licensing and production.
The state has specific rules regarding the direct-to-consumer (DTC) shipment of alcohol. Licensed alcohol shippers are required to register for sales tax, and DTC shipments may be subject to additional taxes, such as markup" taxes or traditional "gallonage"-based excise taxes.
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Frequently asked questions
No, New Hampshire does not have a sales tax. However, alcoholic beverages are subject to excise taxes, which are implemented by every state.
Excise taxes are applied on a per-unit basis, usually per gallon for liquids. They are collected from the merchant, who generally passes the cost on to the consumer in the form of raised alcohol prices.
The state levies a flat 30-cent tax per gallon of alcoholic beverages sold at state-owned retail shops, or 5% of domestic wine sales.
Direct shippers must pay an 8% markup fee on the retail price of wine shipped to consumers in New Hampshire, on top of any excise taxes.
