Last Call for Tax-Free Beer
Beer drinkers in Vermont have it easy. When Vermonters buy a bottle of wine, they pay the state's sales tax — but if they buy a six-pack of beer it's exempt. But thanks to new legislation, starting in January the state's sales tax will apply to beer as well — ensuring that all alcoholic beverages are taxed the same way. Vermont is cleaning up its sales tax laws as part of its membership in the Streamlined Sales Tax Project, a coalition of state government officials seeking to close what's arguably the most threatening sales tax loophole in the nation — the inability of states to tax Internet-based sales. An ITEP policy brief explains why this sort of sales tax simplification is a necessary step as the state seeks to tax all retail sales fairly in the 21st century.
