Anheuser-Busch InBev NV (ADR) (BUD), Molson Coors Brewing Company (TAP) & Five States That Tax Beer The Hardest

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1. Tennessee
Taking top honors in the beer excise tax list is Tennessee, which charges $1.17 per gallon in excise taxes. With its state income tax applying only to interest and dividend income, Tennessee has to make up revenue from other sources, and with the state being well known for spirits like whiskey, putting more of the burden on beer makes sense for the local economy. Moreover, beer is relatively unpopular in the state, with per-person consumption of 25.7 gallons ranking among the 10 lowest in the nation.

The impact of beer taxes
State excise taxes on beer don’t necessarily have a huge impact on state budgets overall, but in tough times, they still represent an important source of tax revenue, and beer producers from giants Anheuser-Busch InBev NV (ADR) (NYSE:BUD) and Molson Coors Brewing Company (NYSE:TAP) down to smaller craft beer producers like Boston Beer Co Inc (NYSE:SAM) end up bearing their share of the burden along with their customers.

The article These 5 States Tax Beer the Hardest originally appeared on Fool.com and is written by Dan Caplinger .

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Boston Beer and Molson Coors and owns shares of Boston Beer.

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