{
  "id": "RL30238",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL30238",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 101865,
      "date": "1999-06-15",
      "retrieved": "2016-05-24T20:44:23.748941",
      "title": "Federal Excise Taxes on Alcoholic Beverages: A Summary of Present Law and a Brief History",
      "summary": "Excise taxes on alcoholic beverages began with the 1791 tax, a short lived tax proposed as a\nmeans\nof helping to meet the costs of the Revolutionary War debt. The tax was resurrected briefly during\nthe War of 1812. Eliminated shortly after the close of that war it reappeared as a tool for financing\nthe Civil War, when a tax was also extended to fermented beverages (beer and ales). It has continued\nthrough to the present day, being extended to carbonated wines and, just prior to World War I, to\nwines generally. Taxation of alcoholic beverages are periodically reevaluated by Congress and the\nsubject of congressional inquiries. \n  Taxes generally have increased during war time periods; and during their early years, when\ndemands on the national government were not as great, revenues from these excises contributed a\nsubstantial portion of the total budget. \n  Tax rates on alcoholic beverages remained unchanged from the mid 1950s until 1984, when the\ntax on distilled spirits was increased by $2 per proof gallon to $12.50. A proof gallon is a gallon\nwhich is 50% alcohol. In 1990, in response to demands for added revenues to reduce the budget\ndeficit there was an across the board increase on beverage alcohol tax rates. According to the House\ncommittee recommending that increase, these taxes were selected for an increase because they had\nnot been increased for many years so that the effective rate was substantially lower than when\nadopted and there was considerable evidence of added social costs from consumption of alcoholic\nbeverages. In the latter context the tax increase was viewed as a user fee to aid in bearing the added\ncosts to government and a potential deterrent to excessive consumption.\n  Beer is presently taxed at $18 per 31 gallon barrel; typical table wines (up to 14% alcohol: \nChablis, rose, burgundy) are taxed at $1.07 per gallon; sweeter fortified wines (14 - 21% alcohol: \nsherry, port, vermouth) are taxed at $1.57 per wine gallon. Other rates include champagne and\nsparkling wines taxed at $3.40 per wine gallon and artificially carbonated wines taxed at $3.30 per\nwine gallon. Distilled spirits are now taxed at the rate of $13.50 per proof gallon. A proof gallon\nis one gallon of 100 proof spirits (50% alcohol). Thus the tax on 80 proof spirits would be .8 x\n$13.50 or $10.80 per gallon. The law also imposes an occupational tax of $1000 per year on wine\nmakers, brewers and distillers; $500 on wholesalers; and $250 on retailers. In addition alcoholic\nbeverages are subject to state taxes.\n  This report explains the operation of present law and provides a brief historical background for\nfederal taxation of alcoholic beverages. It will be updated as warranted by subsequent legal\ndevelopments. For additional information on this topic see: CRS Report RS20172, Excise Taxes on\nAlcohol, Tobacco and Gasoline: History and Inflation-Adjusted Rates.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
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          "url": "http://www.crs.gov/Reports/pdf/RL30238",
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      "topics": []
    }
  ],
  "topics": [
    "American Law"
  ]
}