Customers confused over ‘spirits fee’ showing up on Target receipts

SEATTLE — No one likes to see added fees or extra charges added to their receipts, but recently a post circulating the internet and social media showing Target charging a “Spirits Fee” had some customers raising their eyebrows.

KIRO 7 showed the receipt to the Washington State Liquor and Cannabis Board who said, “That particular White Claw product is considered a distilled spirt so it’s subject to two wholesale excise taxes, the 17% “spirits fee” a retail sales tax and Target’s markup. Our auditors have actually reviewed Target receipts such as this. Where it says “Spirits Fee” it really contains another excise tax (collected by Dept. of Revenue), the 17% (collected by LCB) and the markup. A more accurate reading would have said “Spirits Tax, excise and sales tax, and Markup.”

“Saying it’s a fee gets us to question it,” Thomas Hulm, a Target customer said. “It’s poorly labeled, it should be labeled a tax, a state liquor tax if that’s what it is.”

A spokesperson for Target also confirmed that it is in fact state tax and not a fee. They also told us that Target is looking into the matter. They don’t know how long the label has been in use, but KIRO 7 found at least one receipt showing the “Spirits Fee” going back to 2023.

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