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Why Virginians pay more for liquor

Photo: Cindy Ord/Getty Images for NYCWFF Since 2018, Tito’s Handmade Vodka the in Virginia. But here in the Old Dominion, drinkers appear to pay more for a bottle than in nearly any other state in the nation, according to an informal survey of liquor prices by Axios Local correspondents. What's happening: Virginians pay $39.99 for a 1.75 liter bottle, or a handle, of Tito’s, the sixth-highest price in the country, according to our survey. Our findings suggest Indiana pays the least: A handle of Tito’s can be found at Total Wine there for $19.69. Oregon, where the state operates liquor store monopolies just as in Virginia, pays the most at $49.95. Why it matters: Booze is big business in Virginia. Revenue from liquor sales fills the state coffers. What we did: We and our colleagues checked prices in a major city in 49 states to see how much a handle costs in state-run vs. privately operated liquor markets. Zoom in: Virginia's high prices extend beyond Tito's, per our informal survey. For Jack Daniel’s No. 7 — the third top seller in the Old Dominion — we pay $51.99, the third-highest price in the country, even among other states with state-run stores. Among state-run liquor markets, only Alabama is more expensive: $52.49. Yes, but: While mass-produced, popular liquors tend to be priced higher here than in states with private stores, limited-edition spirits, , tend to be priced far lower because Virginia ABC has to stick to one pricing formula for everything. How it works: “The [Virginia ABC] board has responsibility for markups,” Virginia ABC CEO Travis Hill tells Axios. And Virginia ABC hasn’t changed the markup since 2015, which means Virginians have been paying the same price for a bottle of Jack or Tito’s for nearly a decade. For pricing Virginia spirits, ABC starts with the case cost from the producer. From there, markups are set by:Size (the bigger the bottle, the less the markup, generally).Proof (one price for 125% or less, higher for over).State tax based on type (20% added for distilled spirits, 4% for low alcohol). Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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