State & Local Government Policy, Business and Technology

Is Selling Tax-Free Liquor Tax Evasion?

Governing: New Hampshire doesn’t collect sales or excise taxes on the purchase of liquor, yet it relies on liquor sales to keep its budget afloat. That combination has led to a long list of troubles, including allegations of bootlegging, money laundering and tax evasion, to name a few.

The tax-free liquor brings in lots of customers from other states. These aren’t just out-of-state visitors looking to save a couple of bucks on a bottle. It’s pretty common for people to drive up in trucks with New York license plates and purchase thousands of dollars’ worth of booze. These purchases, often made in cash, frequently total just under $10,000 apiece -- the threshold that triggers Internal Revenue Service disclosure requirements.

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