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.