Louisiana: Beer retailers anticipating an impact from higher alcohol tax

Source: WWL.com

April 1st

Beginning April 1, the state tax will increase on all types of alcohol by one to two cents per serving. Executive Director of the Beer Industry League of Louisiana John Williams says although the state tax on beer in Louisiana has not been increased since 1948, Louisiana has always had a relatively high alcohol tax.

“Louisiana was already the 14th highest excise tax, so the increase is going to put us closer to the top 10 in the country as far as the rate,” Williams said.

This tax hike is permanent, and it does not have an expiration date like other similar bills that were passed in the special session. Williams says someone will have to absorb these costs, either consumers or alcohol retailers.

“They’re going to have to make a decision on whether they’re going to increase their prices or take a hit, obviously,” Williams said.

The new tax is expected to bring in nearly $5 million between April 1 and June 30. Williams says the brewery industry is growing in the state, and this increased tax will hurt them…

“They’re all going to pay it. There’s no exemptions for any of the manufacturers for the state excise tax,” Williams said.