Alabamians spending less, except for beer

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Alabamians spending less, except for beer

January 5th, 2009 John Little Leave a comment Go to comments

January 5, 2009
Alabamians spending less, except for alcohol

State tax collections for the first three months of the fiscal year show Alabamians are spending less, except when it comes to alcohol.

A state financial report covering October, November and December shows the state’s sales tax collections dropped nearly 10 percent from the same period a year earlier.

But beer tax collections were up 4 percent and income from state liquor stores, including taxes and profits, increased 10 percent.

“People don’t like to give up their alcohol,” said Robert Pandina, director of the Center of Alcohol Studies at Rutgers University.

Pandina said Monday it’s customary for alcohol sales to go up in difficult economic times, and several other states that keep close track of alcohol taxes have experienced the same trend as Alabama.

Alabama’s beer tax is a good indication because it is based on volume rather than price. That means the increase in beer tax collections reflects greater sales, rather than higher prices.