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October 28, 2022

New nip tax generates more than $4.2M first year

Pixabay
By Skyler Frazer

The state announced this week that its “nickel-per-nip” program has generated more than $4.2 million since it was implemented in 2021.

The program, which the state calls an “environmental stewardship” effort because nip bottles are a common form of litter, places a 5 cent surcharge on the sale of each 50 ml “nip” container of alcohol. Every April and October, Connecticut municipalities receive this additional fee revenue for each nip sold within its borders over the prior six months.

According to the Three Tiers for Connecticut, the not-for-profit organization that pushed for the law last year, towns and cities have been using the new funding for litter-reduction and recycling efforts.

For the recent period from April 1 to Sept. 30, the state sent out $2.3 million to municipalities, adding to the $1.9 million already allocated in April. 

Since the program began in October 2021, New Haven has received $190,617.89 from the state via the new surcharge, the most in the state; 1,573,810 nips were sold in the city from April to Sept. 30.

Hartford is a distant second with 1,272,672 nips sold during that same span of time. The Capital City has generated $135,735.87 from the state since the program began.

Three Tiers for Connecticut is a not-for-profit organization representing all of the state’s major wine and spirits wholesalers, suppliers and retailers.

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