State Has One Of Highest Alcohol Taxes In Country

UPDATED: 10:23 a.m. CST December 27, 2002

BIRMINGHAM, Ala. -- Now that Christmas is over, many are turning their attention to New Year's Eve. For many Alabamians, the holiday means buying some of the most expensive celebrative spirits in the South.

Cynthia Reedy manages the Vestavia Package Store -- an occupation that kicks into high gear this time of year.

Liquor stores like hers make 12 percent of their annual sales in December alone, and more money means more work.

"You got a lot of cases coming in and you have to handle these by hand," Reedy said. "It's a lot of picking up and lifting. In and out stocking shelves checking with the customers at the same time."

Reedy says she can't keep Jack Daniels or Crown Royal on the shelves with New Year's only days away.

And Alabamians pay the price. Take a half-gallon of Jack Daniels for instance. The state rate is $42, which is steeper than all the other surrounding controlled states.

North Carolina comes closest at $38 a bottle. If you drive to Virginia, you will only pay $27 for a bottle. [Whoa! No wonder we don't drink as much as we usedta!]

Alabama has one the highest alcohol taxes in the country. In fact, when you buy a bottle here, less than half of your money pays for the actual alcohol -- the rest is tax, plus ABC markup.

The state pockets most of the money. One-third finds its way into the General Fund. Human resources gets $35 million, while mental health and education each get around $20 million.

The rest is spread between the Department of Revenue, counties and municipalities. Last year, alcohol sales generated $280,000 for Jefferson County.

-- Anonymous, December 28, 2002