Mr. Miller 's cost revenue figures paint an inaccurate picture because they do not consider the additional sales taxes from alcohol purchases, only revenue from alcohol excise taxes, the bulk of which flow to the state.
I want to know what "which" is referring to and why. I guess it refers to alcohol excise taxes, because it the nearest noun to "which". Can I comprehend it in this way?
The noun phrase that "which" refers to is "revenue from alcohol excise taxes". This follows the standard rule of relative pronouns referring to the nearest antecedent that matches in number, gender, semantics, etc.
Why is "alcohol excise taxes" not the antecedent?
A tax is an imposed charge added to some other amount, not the revenue itself that comes from it. Although the word "taxes" is often used informally to refer to revenue from taxes, in this case the word "taxes" only refers to the levied charge itself, not to the revenue that comes from it.
The sentence is poorly written because in number, "taxes" agrees with "flow", which suggests that "taxes" is the antecedent, but this ignores the correct and precise use of "revenue", so I think the sentence should have been written with "flows".
Yes you are correct. Usually when "which" is used, look before it, in this case it refers to "alcohol excise taxes" which is the noun phrase. "Which" is usually used to point something out right before it, lest it become too confusing. So it means the bulk of the taxes go to the state.
You guessed correctly. "Which" refers to "alcohol excise taxes" and not "revenue".
Why is "revenue" not the antecedent?
Because of the verb flow:
Revenue flows...
Taxes flow...
