Who pays state taxes on beer under the 3-tier system?

In the 3-tier system of alcohol distribution in the United States, wholesalers are responsible for paying state taxes on beer. This system separates the production, distribution, and retail sale of alcoholic beverages to ensure that each party fulfills regulatory requirements and operates within the confines of the law.

Wholesalers purchase beer from breweries and then sell it to retailers or directly to consumers in some cases. When wholesalers acquire beer, they are subject to state excise taxes that are typically imposed on those who engage in the sale or distribution of alcohol. The responsibility for settling these taxes lies with the wholesalers, who then incorporate the costs into their pricing structure when selling to retailers or consumers, thereby indirectly influencing the final selling price.

This taxation structure means that while consumers ultimately pay for the beer through retail prices that include these taxes, it is the wholesalers who handle the direct tax payments to the state. Retailers typically deal with sales taxes, while breweries often face other types of taxes focusing on production and sales at the manufacturing level.