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Alcoholic Beverages Tax
2017 Annual Report


Alcoholic Beverages Tax Reports





AS 43.60

Description

Alaska levies a tax on alcoholic beverages sold in Alaska. The tax is collected primarily from wholesalers and distributors of alcoholic beverages.

Returns

Taxpayers are required to file electronic returns through Revenue Online.

Taxpayers file returns and pay tax monthly. The returns and payment are due by the last day of the month following the month of sale.

Exemptions

Sales to facilities operated by one of the uniformed services of the United States are exempt if they fall within the guidelines of 4 USC 107.

Disposition of Revenue

The Department of Revenue’s Tax Division deposits all alcoholic beverage tax revenue into the General Fund. The Department of Administration separately accounts for 50% of the tax collected and deposits it into the Alcohol and Other Drug Abuse Treatment and Prevention Fund.

History

The alcoholic beverage tax dates back to 1933 when the Territorial Legislature enacted a tax on beer and wine at a rate of $0.05 per gallon. Taxpayers filed alcoholic beverage tax returns monthly.

1937 – The Territorial Legislature enacted a tax on liquor at a rate of $0.50 cents per gallon. At the same time, the rate for wine increased to $0.15 per gallon.

Since 1937, the Territorial Legislature and then Alaska Legislature have made minor changes to the alcoholic beverage tax statutes. In addition, between 1937 and 1983, the Legislature increased Alaska’s tax rates to correspond with rate changes made by other states.

2002 – The Legislature significantly increased the tax rates on all three alcoholic beverages effective Oct. 1, 2002. However, this legislation allows breweries meeting the qualifications of 26 USC. 5051(a)(2) (small breweries) to pay tax at the lower rate of $0.35 cents per gallon on the first 60,000 barrels of beer (malt beverages) sold in Alaska. At the same time, the Legislature created the Alcohol and Other Drug Abuse Treatment and Prevention Fund, and directed that 50% of the alcoholic beverage tax be deposited into that fund for alcohol and drug abuse treatment programs.

Between 1937 and 2002, alcoholic beverage tax rates have changed as follows:

Per Gallon
YearLiquorWineBeer
(Malt
Beverages)		Beer
(Small
Breweries)
1933-$0.05$0.05-
1937$0.50$0.15--
1941$1.00---
1945$1.60---
1946$2.00---
1947$3.00$0.25$0.10-
1957$3.50$0.50$0.25-
1961$4.00$0.60--
1983$5.60$0.85$0.35-
2002$12.80$2.50$1.07$0.35



Data with additional years.

  Gallons

Fiscal Year

 2017 2016 2015 2014

   Liquor

 1,720,752 1,719,614 1,676,579 1,640,739

   Beer, Malt Beverage and Cider

 9,633,411 10,068,117 10,184,405 10,364,001

   Wine

 2,417,565 2,394,471 2,376,214 2,310,985

   Beer, Small Brewery

4,194,044 4,160,059 3,947,554 3,856,606


  Collections Summary

Fiscal Year

 2017 2016 2015 2014

   Liquor

 $22,179,736 $23,165,282 $19,385,984 $20,120,677

   Beer, Malt Beverage and Cider

 10,301,812 11,419,470 10,902,805 10,837,519

   Wine

 6,113,315 6,280,182 5,971,367 5,594,883

   Beer, Small Brewery

1,464,605 1,517,887 1,399,148 1,277,276

   Penalties, Interest and Refunds

 37,372 47,588 (52,916) 3,121

   Total Tax
$40,096,840
$42,430,408
$37,606,388
$37,833,475

   Treatment and Prevention Fund

 20,023,821 20,208,311 19,935,848 19,529,322

   General Fund

 20,073,019 22,222,097 17,670,540 18,304,153

  Filing Information

Fiscal Year

 2017 2016 2015 2014

   Number of Returns

 1,109 943 906 922

   Number of Taxpayers

 75 68 61 61




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