Alcohol Tax in Maryland George Griffin Director Montgomery County Department of Liquor Control

Current Situation Alcohol Taxes ProductMDVADC Beer$0.09$0.26$0.09 Wine$0.40$1.51$0.30 Spirits$1.5020%$1.50 Current Alcohol Tax Rates for Maryland and Neighbors

Alcohol Definition Article 2B Definitions. ‘Alcoholic beverages” means alcohol, brandy, whisky, rum, gin, cordial, beer, ale, porter, stout, wine, cider, and any other spirituous, vinous, malt or fermented liquor, liquid, or compound, by whatever name called, which contains, except as provided in subparagraph (ii) of this paragraph, one-half of one percent or more of alcohol by volume, which is fit for beverage purposes. (ii) “alcoholic beverages” does not include confectionary food product that contains up to 5 percent of alcohol by volume and is regulated by the Department of Health and Mental Hygiene under of the Health- General Article.

Beer Definition 3(i)“Beer” means any brewed alcoholic beverage. (ii) “Beer” includes: 1.beer; 2.ale; 3.porter; 4.stout; 5.hard cider, and 6. Alcoholic beverages that contain: A. 6% or less alcohol by volume, derived primarily from the fermentation of grain...not more than 49% of overall alcohol content from additives – or – more than 6% abv…with not more than 1.5% of overall alcohol content by additives

Wine Definition (28) “Wine” means any fermented beverage, including light wines, and wines the alcoholic content of which has been fortified by the addition of alcohol, spirits or other ingredients.

What Have You Got With Wheat? A question you’ll never hear. Vodkas, Whiskeys, Seasonal Beers… Ingredients and production methods used to be indicators of an end product. This is no longer the case.

The New “Beer” High Alcohol Content Products: Taxed as beer. Yeasts can now produce an alcohol content of up to 25%.

Tax and Regulate by ABV Create four categories defined by “Alcohol by Volume” and institute a rising scale tax rate Regulate products using the four categories A= “Beer” B= “Wine” C= “Fortified wines/light cordials” D= “Distilled Spirits”

Thank You! George Griffin Director Montgomery County Department of Liquor Control Crabbs Branch Way Rockville, MD