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How much does Alabama lose when y'all buy your booze across state lines?

Rickey Stokes

Viewed: 4591

Posted by: RStokes
Date: Mar 18 2018 2:34 PM

This story is a part of Ask Alabama, where you ask the questions, you vote to decide which questions we answer, and then we investigate.  


This week we're answering a question submitted by a reader from just outside Dothan who asked: 


How much tax money does Alabama lose to neighboring states due to the higher prices of alcohol here? 

It's true, Alabama does have far higher taxes on alcohol than in neighboring states, meaning that alcohol is likely more expensive too. 

Our question asker, who wanted to remain anonymous, told Ask Alabama that the whisky he regularly buys is 55 to 40 percent cheaper in Florida and he knows of private companies and government agencies that go to different states to buy large amounts of cheaper booze for various events. 

"The ABC Board presented an argument a few years ago showing comparative prices for different liquor brands that were very close to what Alabama charges," said the question asker in a conversation with Ask Alabama. "The only problem was the brands they provided for price comparison no one had heard of them and they didn't even sell them in their stores."


"They know they charge way more than most other states."


But working out how much Alabama loses in tax revenue to neighboring states is almost impossible to calculate without knowing how many people are actually crossing state lines to do it and what they are buying.


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