Putting the Tax Calculator to Work
Here is an example of how each field should look once you input the data and press the "Calculate" button:Do not include commas
Current revenue: $
Do not include
Check with your state's Department of Revenue, Alcohol Beverage Control Board, Liquor Board, or state legislative revenue committee.
Current excise tax rate: $ per gallon State Excise Tax Rates
Current retail price: $
National Average Retail Prices or Formula to Calculate State Average Retail Price
Price elasticity: You must include the negative sign
Price Elasticity Values
Price elasticity shows the relationship between price changes and consumption. Larger elasticities will show that a greater increase in price leads to a greater drop in consumption volume. For example, a price elasticity of -0.35 means that for every 10% increase in price, consumption will decline by 3.5%.
New excise tax rate: $ per gallon
|Options for changing the tax rate:||
Double the tax rate
National average of excise tax rates
Measure the tax increase on a per-drink basis
Match the tax rate of surrounding states
These calculations assume a 7.5% markup on the tax increase.
At the new tax rate that you
New volume: gallons
New revenue: $
Revenue will increase by:
$, or %
Consumption will drop by:
The price of a six-pack of beer will increase by: $
The price of a case of beer will increase by: $
To see an example write-up of how to use the data generated by this Tax Calculator, read a Sample State Report.