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happyslug

(14,779 posts)
10. The High Prices reflect the high state taxes NOT over head costs
Sun Feb 3, 2013, 02:49 AM
Feb 2013

Pennsylvania has some of the highest taxes on Alcohol in the Nation, and that is reflected in the price. People complain about the high price and blame HOW Liquor is sold without understanding that the main difference is the high tax rate.

For example PA tax on Liquor is $6.94 per gallon

West Virginia only charges $1.85. Maryland, $1.50. New York $6.44, New Jersey $5.50, Delaware $5.46. Thus a lot of Pennsylvanian go to Maryland and West Virginia to save money, but the big difference is the tax rate NOT anything else. New York, New Jersey and Delaware also have lower taxes then Pennsylvania but not the multi-dollar difference between Pennsylvania and West Virginia and Maryland.

http://taxfoundation.org/article/state-sales-gasoline-cigarette-and-alcohol-tax-rates-state-2000-2010

One of the reason for the High Alcohol tax is the "Temporary Tax" to pay for the damages due to the 1936 St Patrick's day flood. It was passed right after the flood to pay for the repairs needed but has NEVER been repealed.

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