Theo Nash
Alcoholic beverages are subject to excise taxes in Louisiana, which are included in the final purchase price. These excise taxes are based on alcohol content, place of production, size of the container, and place of purchase. Beer, wine, and spirits are all subject to different tax rates, with beer taxed at $0.32 per gallon, wine at $0.11 per gallon, and liquor at $2.50 per gallon. These taxes are mandatory and are added to the federal alcohol excise taxes, which are also passed on to the consumer. Louisiana's approach to alcohol regulation is nuanced, with direct-to-consumer sales varying by beverage type and some parishes imposing specific hours and Sunday sales rules.
| Characteristics | Values |
|---|---|
| Alcoholic beverage tax | Excise tax |
| Who pays the tax | The dealer who first handles the alcoholic beverages in Louisiana |
| When to pay the tax | On or before the 15th day of the month following the taxable month for liquor and wine; within 20 days after the end of each calendar month for beer |
| Tax on liquor | $2.50 per gallon |
| Excise tax on wine | $0.11 per gallon; $0.23/gallon for 14% to 24% ABV; $1.59/gallon for over 24% ABV and sparkling wine |
| Excise tax on beer | $0.32 per gallon |
| Federal excise tax on beer | $18.00/31-gallon barrel, or $0.05 per 12-oz can |
| Federal excise tax on wine | $1.07 to $3.4/gallon; $0.21 to $0.67/750ml bottle |
| Federal excise tax on distilled spirits | $13.5/proof gallon or $2.14/750ml 80-proof bottle (40% ABV) |
| Tax on malt beverages | $12.50 per barrel (containing not more than 31 gallons) |
| Tax on low alcoholic content beverages | $12.50 per barrel (containing not more than 31 gallons) |
| Direct-to-consumer sales | Allowed for wine from out-of-state producers and retailers with restrictions; not allowed for beer or spirits |
| Shipping requirements for wine | Certificate of Authority to Ship and Direct Wine Shipper Permit |
| Shipping requirements for beer and spirits | Wholesaler/Importer Permit (Class A or B) |
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What You'll Learn
Excise taxes on beer, wine and spirits
In Louisiana, beer vendors are subject to a state excise tax of $0.32 per gallon, as well as federal excise taxes, for all beer sold. For beverages of low alcoholic content (beer), the tax rate is $12.50 per barrel (containing no more than 31 gallons). Taxes for beer must be filed and paid within 20 days after the end of each calendar month.
Liquor vendors in Louisiana are responsible for paying a state excise tax of $2.50 per gallon, as well as federal excise taxes, for all liquor sold. For beverages of high alcoholic content (liquor and wine), the tax rate is $12.50 per barrel (containing no more than 31 gallons). Taxes for liquor must be filed and paid on or before the 15th day of the month following the taxable month.
The federal excise tax rates on beer, wine, and liquor are adjusted based on the percentage of alcohol in the product. A proof gallon is a gallon of liquid that is 100 proof, or 50% alcohol. Some tax discounts are available to small brewers.
In addition to the excise taxes mentioned above, there are also additional taxes for wine in Louisiana. These taxes are as follows: 14% to 24% – $0.23/gallon, over 24% and sparkling wine – $1.59/gallon.
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Federal alcohol excise taxes
Alcohol excise taxes are levied by the federal government to reduce the external harms associated with alcohol consumption. These taxes increase market prices and decrease legal consumption, thereby reducing issues such as drunk driving, intoxicated violence, and property damage. The revenue generated from these taxes can be used to fund anti-addiction programs, enforce and incentivize sober driving, and support education initiatives.
In the United States, distilled spirits are subject to a significant federal excise tax, which can be as high as $13.50 per proof gallon. This tax rate is notably higher than the tax applied to beer or wine with the same alcohol content. For example, a cocktail containing 0.6 ounces of alcohol from a 40-proof spirit is taxed at a rate more than double that of beer and more than three times that of wine, despite the equal alcohol content in these standard drinks.
The federal excise tax on rum produced in Puerto Rico and the US Virgin Islands (USVI) is particularly noteworthy. Of the $13.50 per proof gallon tax, $10.50 is automatically returned to these territories based on their share of domestic rum production. This has sparked controversy, as it results in substantial subsidies and tax breaks for rum producers in these regions, creating an uneven playing field for spirits producers in other states.
While the federal excise taxes on alcohol are uniform across the country, states may also impose their own excise taxes on alcohol products. All 50 states, including Louisiana, collect excise taxes on fermented malt beverages, and they may apply differential tax rates based on the category of the alcohol product. These state excise taxes are added to the federal excise taxes, impacting the final price paid by consumers.
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Alcohol sales and delivery laws
In terms of sales and delivery, Louisiana allows for some direct-to-consumer (DTC) shipping of wine. Out-of-state wineries can obtain a Direct Wine Shipper Permit to ship up to 12 cases (144 bottles) of wine per adult resident per year. Additionally, out-of-state wine and beer suppliers must obtain a Certificate of Authority to Ship their products to Louisiana-based wholesalers. However, direct-to-consumer shipping of beer or spirits from out-of-state producers or retailers is prohibited in Louisiana.
Bars and restaurants in Louisiana are permitted to deliver certain alcoholic beverages, such as beer, ready-to-drink beverages, still wine, and sparkling wine, but only in manufacturer-sealed containers and with the condition that all orders must include food. Off-premise retailers can also deliver alcoholic beverages during normal operating hours, provided that deliveries are made by the licensee or their W-2 employees to ensure accountability and age verification.
All alcoholic beverage products sold in Louisiana must be registered with the state for a fee of $5.00 per unique Certificate of Label Approval (COLA) to ensure compliance with state and federal labeling standards. Additionally, every manufacturer or wholesaler of alcoholic beverages is required to provide a bond, certificate of deposit, or letter of credit in the minimum amount of $10,000 for each type of permit held. The dealer who first handles the alcoholic beverages in Louisiana is responsible for paying the taxes, and if they avoid payment, the taxes will be collected from any subsequent possessors of the taxable beverages.
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Alcohol tax on production and container size
The state of Louisiana levies special excise taxes on the sale of all alcoholic beverages, which are further subdivided into taxes on wine, beer, and liquor (hard alcohol other than wine and beer). Excise taxes are flat per-unit taxes that must be paid directly to the state government by the merchant before goods can be sold and are often passed on to the consumer in the beverage's price. Louisiana's excise tax on beer is $0.32 per gallon, and $12.50 per barrel (containing no more than 31 gallons). The tax on wine is $0.11 per gallon, one of the lowest wine taxes in the country. Taxes on liquor are dependent on the proof gallon, or the percentage of alcohol in the product.
Federal alcohol excise taxes are also collected from the brewer/distiller by the Alcohol and Tobacco Tax and Trade Bureau and are generally passed on to the consumer. Some tax discounts are available to small brewers.
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Tax on alcohol imports
When it comes to alcohol imports, Louisiana has specific taxes in place that apply to alcoholic beverages of different strengths. The tax rates vary depending on the percentage of alcohol in the product, with higher taxes levied on beverages with a higher alcohol content.
For beverages of high alcoholic content, including liquor and wine (over 6% alcohol by volume), dealers are required to file a return and pay taxes. The tax rate for these beverages is $12.50 per barrel, with a barrel containing no more than 31 gallons. Fractional parts of a barrel are taxed at a like rate. These taxes are typically due on or before the 15th day of the month following the taxable month.
On the other hand, beverages of low alcoholic content, such as beer, are taxed at a lower rate. The tax for beer is also $12.50 per barrel, but the barrel size is smaller, containing no more than 31 gallons. Dealers handling these beverages are also required to pay taxes, ensuring that the state collects the necessary revenue. The reporting and payment deadlines for low alcoholic content beverages are different, with taxes due within 20 days after the end of each calendar month.
It's important to note that the price of all alcohol sold in Louisiana includes federal alcohol excise taxes. These taxes are typically collected from the brewer or distiller by the Alcohol and Tobacco Tax and Trade Bureau and are then passed on to the consumer in the beverage's price. There are some tax discounts available for small brewers, providing some relief to local producers. The federal excise tax rates vary depending on the type of beverage, such as beer, wine, or liquor, and the proof gallon, which is the measure of the alcohol content.
Overall, the tax structure for alcohol imports in Louisiana is designed to generate revenue from the sale of alcoholic beverages while also regulating the consumption of these products. By taxing beverages based on their alcohol content, the state encourages responsible drinking and generates funds for various public services and initiatives.
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Frequently asked questions
Louisiana collects special excise taxes on the sale of all types of alcohol, which are subdivided into taxes on wine, beer, and liquor (hard alcohol other than wine and beer). The state taxes on hard alcohol vary based on alcohol content, place of production, size of container, and place purchased.
The excise tax on beer in Louisiana is $0.32 per gallon, which is higher than 62% of the other 50 states.
The excise tax on wine in Louisiana is $0.11 per gallon, one of the lowest wine taxes in the country. Additional taxes are applied to wine with an ABV of 14% to 24% ($0.23/gallon) and over 24% ABV and sparkling wine ($1.59/gallon).
The excise tax on liquor in Louisiana is $2.50 per gallon, one of the lowest liquor taxes in the country.
Yes, Federal alcohol excise taxes are also collected by the Alcohol and Tobacco Tax and Trade Bureau and are generally passed on to the consumer in the beverage's price.
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