What is going on with alcohol sales taxes in MN?!? (Eagan: 2013, to buy)

[Kiltmadoc]

My wife and I bought a bottle of wine the other day and were charged a 9% sales tax on top of the federal excise tax of $1.07, and the state excise tax of $0.95.

I am only sensitive to this because in MA, where I am most recently from, the state tried to impose a sales tax on top of the excise tax that they already receive and the voters in MA revolted.

Do people in MN know that they are being charged 2 separate sales taxes for all their beer, wine and liquor?

more links to excise taxes: http://www.taxadmin.org/fta/rate/wine.pdf

[Globe199]

Alcohol taxes in Minnesota are high compared with neighboring states. We have a number of other ridiculous alcohol laws here. A lot of them are rooted in an anti-alcohol mentality that exists in Minnesota, where that tax is informally called a "sin tax."

I suspect these laws will (very) slowly change as craft brewing becomes a larger piece of the economy. But it won't be easy. There is a very entrenched liquor lobby that insists on doing things the old way and sorely needs dismantling. I would like to see Sunday and grocery store sales like most states have. It's pretty ridiculous in 2013 to not offer these things.

[Thegonagle]

Well, yeah, I figured there was an extra tax or two on top of standard sales tax because the tax rate seems to be around 10% (give or take a percent or two), instead of 7%.

I never really worried about it though, because it doesn't seem to vary much if any by location (within Minnesota).

It makes sense to me because alcohol is regulated and regulation costs money to administer. It only affects those who choose to buy alcohol, so it can be thought of as a user tax.

Don't want to pay the tax? Don't buy alcohol.

Want to buy alcohol? Pay your tax.

Seems fair enough to me.

I don't see what craft brewing has to do with the retail sales tax--it applies equally to beer from anywhere. The craft brewers are more invested in fighting the rigid producer/distributor/retailer separation we have here.

[GJJG2012]

Originally Posted by Kiltmadoc

My wife and I bought a bottle of wine the other day and were charged a 9% sales tax on top of the federal excise tax of $1.07, and the state excise tax of $0.95.

I am only sensitive to this because in MA, where I am most recently from, the state tried to impose a sales tax on top of the excise tax that they already receive and the voters in MA revolted.

Do people in MN know that they are being charged 2 separate sales taxes for all their beer, wine and liquor?

more links to excise taxes: http://www.taxadmin.org/fta/rate/wine.pdf

The general sales tax I think is something like 7.125%. The 2% sales tax on alcohol was to be used for the domed stadium. It was going to be a tax on bar drinks of about 11% total, but bar owners complained, so the tax was split between bars & liquor stores at, I think, 9.125%.

[QuietBlue]

I have much less of an issue with the taxes than I do with the stupid blue laws about Sunday sales and selling alcohol in grocery stores.

There was also a minor controversy in Eagan last year about allowing liquor stores to stay open until ten p.m. Monday through Thursday, with some stores supporting it and some not (the ordinance had been that they were required to close at eight p.m. on those days). I try to shop at the ones that are open later in order to show appreciation for what they're doing.

[slamont61]

I thought Sales Tax in MN was 6.875 but it also depends on Local Muni's

Here is a calculator: Sales Tax Rate Calculator

Now they want to Tax Clothing I hear.

[rcsteiner]

Originally Posted by QuietBlue

I have much less of an issue with the taxes than I do with the stupid blue laws about Sunday sales and selling alcohol in grocery stores.

I get the impression that many liquor store owners would rather things stay as they are.

We just had votes all over the state of Georgia about Sunday sales, and it passed almost everywhere, so I would be surprised if the same wasn't true in most areas up there. The hard part is probably getting it to the voting stage in the first place.

[TimtheGuy]

It is really dumb for MN not to sell on Sundays. I live in a border town and can tell you that loads of people go over the border on Sundays to purchase alcohol in WI. Why would we want to pass up on the fat tax the state collects and give it to WI? Not too bright.

Go sit at a liquor in Prescott, Hudson or Superior on a Sunday and look at the MN plates roll in.

[1stpontiac]

Originally Posted by rcsteiner

I get the impression that many liquor store owners would rather things stay as they are.

We just had votes all over the state of Georgia about Sunday sales, and it passed almost everywhere, so I would be surprised if the same wasn't true in most areas up there. The hard part is probably getting it to the voting stage in the first place.

Originally Posted by TimtheGuy

It is really dumb for MN not to sell on Sundays. I live in a border town and can tell you that loads of people go over the border on Sundays to purchase alcohol in WI. Why would we want to pass up on the fat tax the state collects and give it to WI? Not too bright.

Go sit at a liquor in Prescott, Hudson or Superior on a Sunday and look at the MN plates roll in.

RC is right. I've seen direct comments from liquor store owners in articles saying that they just don't want to be open on Sundays, and that they know as soon as one place is open, they'll all have to be open. They must not think being closed on Sundays costs them all that much...that people just buy the same amount on other days. I'm sure opinions change as you get closer to the border.

I'd love to be able to buy beer and wine in the grocery stores again (as in my last state). I don't drink enough that its a big deal, but it sure was handy to grab a six-pack at the same time as the hamburger buns, or a Merlot when you pick up noodles. Especially when you are dragging kids around.

[golfgal]

Having grown up on the border, I just don't think having liquor stores open on Sunday is a big deal. If you know you are having the guys over for football on Sunday you have until 10:00 PM on Saturday to buy your beer....

It's kind of a shame that more businesses aren't closed on Sunday.