Wisconsin Alcohol Tax Revenues Highest Since 1972: Report

WISCONSIN — Wisconsin's annual alcohol tax revenues rose almost 17 percent in the fiscal year ended June 30, the Wisconsin Policy Forum said. The increase was the highest in five decades, the policy research group said in a new report.

Revenue from state taxes on alcoholic beverage sales rose to $73.8 million in the 2020 fiscal year, the report said. That was a 16.6 percent increase over revenue in the 2020 fiscal year, during which the state collected $63.3 million, early data from the Department of Revenue said.

The last time alcohol tax revenues rose this high was in 1972, when the drinking age was lowered to 18 until 1984, a brief from the Wisconsin Legislative Reference Bureau said.

The report found a surge in alcohol tax revenues in April 2020, with larger increases in the late summer and early fall.

The 16.6 percent annual increase was higher than those before the pandemic. The annual average sales tax increase was 2.4 percent between 2009 and 2020, the report said.

"Since March 2020, Wisconsin and every other state has dealt with the consequences of the pandemic, including restrictions on gatherings and social interaction," the report said. "For individuals, this period also may have generated increased stress about personal health and the health of loved ones, lost or reduced employment, fewer work or leisure activities, and challenges with school and child care. During such a period, it is perhaps unsurprising that alcohol sales increased in Wisconsin."

The report also mentioned Wisconsin's long-standing health concerns with excessive alcohol consumption. A separate study from the University of Wisconsin-Madison found that Wisconsin spends $4 billion per year on binge drinking, which breaks down to $700 per resident.