Lowering the tax rate for spirits-based ready-to-drink cocktails could generate more than $3 million in additional revenue for government in West Vigina.
That’s according to the Distilled Spirits Council of the U.S., who vp-state public policy, Andy Deloney, told the West Virginia Joint Standing Committee on Finance that “West Virginia spirits consumers are forced to pay much higher taxes for a spirits-based RTD product even if the product has the exact same or similar amount of alcohol as an RTD made with malt, sugar or wine.” For example, he said, that rate for malt- and sugar-based beverages with 6% ABV is 2 cents per 12-ounce can vs. 71 cents per 12-ounce can of a 6% spirits-based beverage.
“Three neighboring states already have reduced gallonage excise tax rates that apply to spirits-based RTDs,” Deloney said, citing Kentucky, and the fellow control states of Ohio and Virginia. “Spirits-based RTDs cost, on average, 15-20% more in West Virginia compared with all neighboring states except Pennsylvania.”