I am a big fan of CellarTracker, an online program that allows me to manage my wine inventory. One nifty feature of CellarTracker is its ability to compare the price I paid for a bottle of wine with the average price paid for by the rest of the buyers of that particular bottle of wine. I noticed that the prices I paid for wine here in Iowa were consistently higher than what the other users paid. The difference started at $2.00 per bottle and generally increased to 10% as bottle prices increased. At the $30 level things became much more random. So, it came as no surprise when I came across a blog posting on wine-searcher.com that created a graphic showing the taxes paid on each gallon of wine sold. Iowa ranks right up there as having the 4th highest tax rate for wine:
(c) copyright Tax Foundation
Obviously, I don’t buy wine by the gallon, so all of the increase in cost cannot be attributed to taxes, but a good share of it is.