Maryland increase sales tax on alcohol

Sorry if this is old news but I had not seen this before yesterday when I got my Comptroller of Maryland Sales and Use Tax newsletter. Starting 1 July the tax on Alcohol goes up to 9%. The tax is applied to both in state sales and direct shipping which also starts on 1 July. While I am happy that the state final passed direct shipping, I think I will still be sending my purchases to DC and avoid the Maryland tax.

If you send them to DC Brian, be careful that you don't go over the speed limit transporting them back into Maryland. I have heard that if you are caught bringing in wine over the limit allowed, they can confiscate your automobile.

I see the tax increase as the cost of getting the direct shipping passed. While I will consider having wine shipped to my DC office, it can be a pain getting it home since I use public transportation 99% of the time. I do not have fond memories of carrying a case of wine on Metro. I may just deal with the additional tax.

[James Roscoe]

Life in a communist state!!!!! Arghhhhh! If anyone wants to know why people cling with hope to the idiotic Republicans, come to Maryland where the Democrats make the alternative look good. Seriously! I suppose I will live with this while the profits from this tax go into the back pockets of sleezy politicians!!! (And DC...... the entire government is under investigation!!!!)

If you send them to DC Brian, be careful that you don't go over the speed limit transporting them back into Maryland. I have heard that if you are caught bringing in wine over the limit allowed, they can confiscate your automobile.

I understand that while the limits remain on the books as law, there has not been active enforcement in 20-30 years. My shipping is minor compared to my shopping at Bassins.

I see the tax increase as the cost of getting the direct shipping passed. While I will consider having wine shipped to my DC office, it can be a pain getting it home since I use public transportation 99% of the time. I do not have fond memories of carrying a case of wine on Metro. I may just deal with the additional tax.

John, that's a fairly heavy cost to pay for direct shipping. Assuming I buy one case a month at my local wine shop for $300/case and I will have paid $108 in additional tax for the year without shipping a single case into the state. I only shipped in 4-5 things over the past year and only one of those was from a winery. The rest still are illegal and will continue to go to DC. So I am going to pay hundreds of dollars per year in additional tax so that I may ship 2-3 cases per year home. That's quite a trade-off.

[David M. Bueker]

So what was the sales tax before? Why do you feel wine purchases should be exempt from sales tax, even at the old rate (since you quote the full 9% in your statement)?

Seriously - most (no, not all) states have sales and exise taxes on alcohol. Why are wine geeks somehow entitled to escape tax on purchases?

I see the tax increase as the cost of getting the direct shipping passed. While I will consider having wine shipped to my DC office, it can be a pain getting it home since I use public transportation 99% of the time. I do not have fond memories of carrying a case of wine on Metro. I may just deal with the additional tax.

John, that's a fairly heavy cost to pay for direct shipping. Assuming I buy one case a month at my local wine shop for $300/case and I will have paid $108 in additional tax for the year without shipping a single case into the state. I only shipped in 4-5 things over the past year and only one of those was from a winery. The rest still are illegal and will continue to go to DC. So I am going to pay hundreds of dollars per year in additional tax so that I may ship 2-3 cases per year home. That's quite a trade-off.

I forgot to add that all of this is in addition to the annual fees charged to the wineries that choose to participate and the fees that the shipping companies have to pay to become certified shippers.

So what was the sales tax before? Why do you feel wine purchases should be exempt from sales tax, even at the old rate (since you quote the full 9% in your statement)?

Seriously - most (no, not all) states have sales and exise taxes on alcohol. Why are wine geeks somehow entitled to escape tax on purchases?

The Sales and Use Tax in Maryland is 6%. The increase to 9% from 6% is only for Alcohol and goes into effect the same day as direct shipping from wineries becomes legal. There is nothing wrong with keeping the rate the same as all other purchases which it always has been. What I have issue with is the raising the rate for only Alcohol and doing so in a manner that seems to imply that it is directly tied to allowing of direct shipping. I did not intend to imply that it should not be taxed if that is the way my posts read. However, I understand how noting that DC does not tax shipping could be read to indicate I believe such.

Maybe you have to live in Maryland to understand. This has been a very long fight and I thought that we won a partial victory with allowing wineries to ship. I did not realize it was coming at the cost of a 50% increase on the tax of all alcohol purchased.

[David M. Bueker]

Maryland is not the only state that played games with its laws when direct shipping was authorized. Some went the route of prohibitive permitting fees to effectively block many wineries from shipping.

Jon wrote;
I see the tax increase as the cost of getting the direct shipping passed.

Some states call this “gross receipt taxes” or “GRT’s” (and it is usually just tacked onto the state’s sales tax. Arizona I believe calls this “additional tax” “Transaction Privilege Tax” or TPT’s”.
(I don’t believe this 3% increase has anything to do with the state’s alcohol excise tax, for table wine I believe Maryland is still .40 cents/ gal).

Salute

I don’t believe this 3% increase has anything to do with the state’s alcohol excise tax, for table wine I believe Maryland is still .40 cents/ gal).

That's interesting - and something I'll have look into.

I'm so used to paying 10% tax to eat out that this doesn't seem shocking to me.