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Alcoholic Beverages Tax
2018 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 their tax returns electronically using 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 then takes 50% of that money and transfers it into the Alcohol and Other Drug Abuse Treatment and Prevention Fund, a subfund of the General Fund. The other 50% of the alcoholic beverage tax revenue stays in the General Fund.

The Alaska Legislature may appropriate the money in the Alcohol and Other Drug Abuse Treatment and Prevention Fund to the Alaska Department of Health and Social Services to establish and maintain programs for the prevention and treatment of alcoholism, drug abuse, and inhalant abuse – the misuse of hazardous volatile materials and substances in an attempt to get high.

History

1933 – 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 treatment programs for alcohol and drug abuse, and inhalant abuse (intentionally inhaling a substance) with the intention of getting high.

Between 1933 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




Click here for data with additional years.

  Gallons

Fiscal Year

2018 2017 2016 2015

   Liquor

1,721,073 1,720,752 1,719,614 1,676,579

   Beer, Malt Beverage and Cider

9,182,020 9,633,411 10,068,117 10,184,405

   Wine

2,351,580 2,417,565 2,394,471 2,376,214

   Beer, Small Brewery

4,234,469 4,194,044 4,160,059 3,947,554
   Total

17,489,142

17,965,772

18,342,261

18,184,752



  Collections Summary

Fiscal Year

2018 2017 2016 2015

   Liquor

$22,022,199 $22,179,736 $23,165,282 $19,385,984

   Beer, Malt Beverage and Cider

9,865,224 10,301,812 11,419,470 10,902,805

   Wine

5,850,411 6,113,315 6,280,182 5,971,367

   Beer, Small Brewery

1,477,303 1,464,605 1,517,887 1,399,148

   Penalties, Interest and Refunds

2,136 37,372 47,588 (52,916)
   Total Tax

$39,217,273

$40,096,840

$42,430,408

$37,606,388

   General Fund

19,611,201 20,073,019 22,222,097 17,670,540

   Alcohol and Other Drug Abuse Treatment and Prevention Fund

19,606,072 20,023,821 20,208,311 19,935,848

  Filing Information

Fiscal Year

2018 2017 2016 2015

   Number of Returns

1,040 1,109 943 906

   Number of Taxpayers

78 75 68 61




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