A little basic calculation from a backwords state in the land of the free and overtaxed.....
State Store Retail Sales = Distributor Price + 56% Excise Tax + 30% State Retail Markup + Freight Estimate of 4% + 7% Sales Tax (State & County, City Exempt) = Distributor Price and Freight + 112.8%.
Private Store Sales (Have to buy from State) = Distributor Price + 56% Excise Tax + 16.9% State Wholesale Markup + Freight Estimate of 4% + 40% Store Markup (Seen as low as 30% and as high as 100%) + 9% Sales Tax (Not City exempt) = Distributor Price and Freight + 173.5%
I know that with tobacco, it's just plain rediculous. A box of cohiba
cigars (siglo II, my fav) which I can get shipped to me for 225$ from overseas, sell here for 740$ + 12% tax!!!! I could never bring myself
to buy a box for that much, its quite bad for business - who has 800$
for a box of cigars?
OMGUI wrote:ps. by gov I mean government, we have no governors here, just prime ministers.
Well its actually the state + a very small slice to the county and city goverment (in the case of Private Stores). I was just using a little poetic license in much the same way as you referring to the "Prime Minister's Cut".
Of course businesses have to have profit to survive. I was just doing a little research to figure out why most Whisky is 30-100% more than in some other states.
For the record we also have a Federal Tax of $4.60 per 750ml 43% AV Bottle. However that's included in the Distributor's Price.
Here is an example with the Federal Tax backed out as well to show what is total taxes and state markup.
Highland Park 12 Total Price - $42.39
State and County Tax - $2.40
State Markup - $9.13
State Excise Tax - $11.04
Fedral Alcohol Tax - $4.60
Highland Park Net Cost (Incudes freight) - $15.12
Total Tax and State Markup Load - $27.27
I made a math error. Federal Tax on 750ml at 43% AV should be $2.30 not $4.60.
$42.39 Total Consumer Price
$24.97 Total Federal, State, and County Tax plus Sate Markup.
$17.42 is Distributor Net (Before Fed Tax including Freight)
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