Article Commentary: State-Specific Liquor Excise Taxes and Retail Prices in 8 US States, 2012. Issue 4 (October 2013)

• Record Type: Journal Article
• Authors: Siegel, Michael; Grundman, Jody; DeJong, William; Naimi, Timothy S.; King, Charles; Albers, Alison B.; Williams, Rebecca S.; Jernigan, David H.
• Is Part Of: Substance abuse. Volume 34:Issue 4(2013)
• Page Start: 415
• Page End: 421
• Publication Date: 2013-10
• Subjects: Alcohol -- alcohol brands -- excise taxes -- price -- states; Substance abuse -- Periodicals; Medical education -- Periodicals; Education, Medical -- periodicals; Substance Abuse -- periodicals; 362.29
• DOI: 10.1080/08897077.2013.792314
• Languages: English
• ISSNs: 0889-7077

Abstract

The authors investigated the relationship between state excise taxes and liquor prices in 8 states, using 2012 data for 45 brands. The authors made 6042 price observations among 177 liquor stores with online prices. Using a hierarchical model, the authors examined the relationship between excise taxes and product prices. State excise taxes were significantly related to liquor prices, with an estimated pass-through rate of 0.93. The proportion of price accounted for by excise taxes averaged 7.0%. The authors find that excise taxes do increase the price of alcohol, but states are not taking advantage of this opportunity to reduce alcohol-related morbidity and mortality.