For every gallon of beer a Michigan resident drinks, a $0.20 state and federal tax is applied.
According to date complied by the Tax Foundation — a think tank that tracks U.S. tax policies— beer taxes range from a meager 2 cents and 8 cents per gallon in Wyoming and Oregon, respectively, but climb to a substantial fee of 87 cents per gallon in Kentucky and up to $1.29 in Tennessee.
The U.S. Office of Management and Budget found that in 2017 alone, alcohol made up 12 percent, or $9.9 billion, of the total federal excise revenue, led by taxes on distilled spirits. The federal tax on the alcoholic beverage is the fourth-leading source of federal tax revenue, falling behind highway-related taxes, taxes on aviation activity and tobacco product taxes. For a larger quantity of 31 gallons — a barrel — the typical tax is $18, applied to the biggest beer brands such as Miller Light and Bud Light. For smaller brewers, the tax is only $7 per barrel for the first 60,000 barrels products.
Across the country, Michigan ranks as the 29th most-expensive tax on beer, just behind Illinois and Connecticut with $0.23 per gallon and Virginia with $0.26 per gallon.
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