NYC Budget Office: Alcohol Tax Increase Would Net $49 Million Annually


NYC Report

New York City's Independent Budget Office has suggested an increase on the city's alcohol excise tax, last raised in 1980. The IBO's report estimates the tax would generate an additional $49 million annually for the city's coffers. Due to inflation erosion, the value of the city's beer and spirits tax is now only one-third of its 1980 value. The adjustment would include an increase on beer from $0.12/gallon to $0.34/gallon, and spirits from $1.00/gallon to $2.80/gallon. Wine products, which currently aren't taxed, would be levied at $0.30/gallon. Raising alcohol excise taxes is also the single most effective intervention for reducing alcohol related-harm from excessive consumption, including vehicle crashes, violence, and disease, making the proposition a win-win for the city.