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

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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.