GOVERNMENT OF THE DISTRICT OF COLUMBIA EXHIBIT M COMPARISON OF SELECTED DISTRICT OF COLUMBIA AND STATE TAX RATES (As of January 1, 1966) (1) Excludes the 17 states in which the sale of spirits is the exclusive monopoly of state or local governments and the state of Mississippi which prohibits the sale of spirits with more than 4% alcohol. (2) Excludes the 17 states which use a "mark-up" or "mark-up" plus an excise tax and the state of Mississippi which prohibits the sale of wine with more than 4% alcohol. Only the dessert wine rates are included in this comparison since this type of wine accounts for over half of all wine sales in the U. S. and in the District of Columbia. (3) This comparison is based on state tax rates imposed on retail sales or use of personal tangible property in general and excludes special rates or excises applied to specific items such as food, motor vehicles, admissions, or rental of hotel rooms. (4) This comparison is based on the tax burden of a family of four with an income of $7,500 and excludes New Hampshire, New Jersey, and Tennessee where the tax applies to special types of income only. (5) This comparison is based on maximum rates and excludes the state of Indiana which taxes the adjusted gross income of corporations from sources within the state at 2%. Maximum rates were not adjusted for deductibility of Federal income taxes or other differences between D. C. and state tax bases. Sources: "Annual Statistical Review, 1964", Distilled Spirits Institute, Washington, D. C. and State Tax Guide, Commerce Clearing House. Footnotes: (1) Mississippi: Sale of alcoholic beverages over 4% alcohol is prohibited and illegal liquor is taxed at 9% of retail price. (2) South Dakota: A tax of 10% is imposed upon gross receipts from all sales of liquor. Liquor over 100 proof taxed at $2.50 per gallon. (3) New Mexico: (4) New York: (5) Arkansas: (6) Florida: (7) Tennessee: Liquor over 100 proof, per wine gallon, is taxed at $2.40 per wine gallon. Includes a 75¢ permit fee which is levied monthly per gallon sold or used by manufacturer or wholesaler. Plus tax of 20 cents per case. Liquor containing more than 48% alcohol by weight taxed at $5.00 per gallon. An additional tax of 15 cents per case is levied on wholesale sales. No. of States DESSERT WINE EXCISE TAX RATES PER GALLON (14%-21% ALCOHOL) (District of Columbia and States) Sources: Wine Excise Tax Rates Per Gallon, Wine Institute, 1100 National Press Building, Washington, D. C., and State Tax Guide, Commerce Clearing House, Footnotes: (1) Montana: Excise tax of 16% of retail price collected at time of sale. (2) N. Carolina: Markup by county stores. (3) Washington: Includes 10% and 5% special taxes. (4) Mississippi: Sale of wine in excess of 4% alcohol prohibited. Illegal sales taxed at double the light wine rate of 42, 68 cents per gallon. (5) Washington, Missouri, S. Dakota, N. Dakota and Florida: Taxes based on alcohol by weight. Sources: State Tax Guide, Commerce Clearing House, and, "Monthly State Tax Cigarette Report, Vol. XIV, 1965", Tobacco Tax Council, Richmond, Virginia. Footnotes: (1) Oregon: Subject to approval by the voters at the next primary election, a tax of (2) These states also impose a tax on other tobacco products. |