Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2017 Mar;78(2):241-248.
doi: 10.15288/jsad.2017.78.241.

Review of State Laws Restricting Local Authority to Impose Alcohol Taxes in the United States

James F Mosher  1 , Sabrina S Adler  2 , Aysha M Pamukcu  2 , Ryan D Treffers  3
Affiliations

Review of State Laws Restricting Local Authority to Impose Alcohol Taxes in the United States

James F Mosher et al. J Stud Alcohol Drugs. 2017 Mar.

Abstract

Objective: Building on the extensive research literature demonstrating that increasing alcohol prices reduces excessive alcohol consumption and related harms, this article presents the results of a 50-state review of local authority to tax alcohol in the United States.

Method: Between 2013 and 2015, legal databases and government websites were reviewed to collect and analyze relevant statutes, ordinances, and case law. Results reflect laws in effect as of January 1, 2015.

Results: Nineteen states allow local alcohol taxation, although 15 of those have one or more major restrictions on local authority to tax. The types of major restrictions are (a) restrictions on the type of beverage and alcohol content that can be taxed, (b) caps on local alcohol taxes, (c) restrictions on the type of retailer where taxes can be imposed, (d) restrictions on jurisdictions within the state that can levy taxes, and (e) requirements for how tax revenue can be spent.

Conclusions: The number and severity of restrictions on local authority to tax alcohol vary across states. Previous research has shown that increases in alcohol taxes can lead to reduced excessive alcohol consumption, which provides public health and economic benefits. Taxes can also provide funds to support local prevention and treatment services. Local alcohol taxes therefore present an important policy opportunity, both in states that restrict local authority and in states where local authority exists but is underused.

PubMed Disclaimer

Figures

Figure 1.
Figure 1.
Local tax authority, January 2015
Figure 2.
Figure 2.
Types of restrictions on tax authority among the states that permit local taxation, January 2015
See this image and copyright information in PMC

Similar articles

See all similar articles

Cited by

References

    1. Community Guide. Atlanta, GA: Centers for Disease Control and Prevention; n.d. Excessive alcohol consumption. Retrieved from https://www.thecommunityguide.org/topic/excessive-alcohol-consumption.
    1. Diller P. A. Intrastate preemption. Boston University Law Review. 2007;87:1113–1176.
    1. Elder R. W., Lawrence B., Ferguson A., Naimi T. S., Brewer R. D, Chattopadhyay S. K., Fielding J. E. the Task Force on Community Preventive Services. The effectiveness of tax policy interventions for reducing excessive alcohol consumption and related harms. American Journal of Preventive Medicine. 2010;38:217–229. doi:10.1016/j.amepre.2009.11.005. - PMC - PubMed
    1. Gorovitz E., Mosher J., Pertschuk M. Preemption or prevention?: Lessons from efforts to control firearms, alcohol, and tobacco. Journal of Public Health Policy. 1998;19:36–50. doi:10.2307/3343088. - PubMed
    1. Kerr W. C., Patterson D., Greenfield T. K., Jones A. S., McGeary K. A., Terza J. V., Ruhm C. J. U.S. alcohol affordability and real tax rates, 19502011. American Journal of Preventive Medicine. 2013;44:459–64. doi:10.1016/j.amepre.2013.01.007. - PMC - PubMed