Sin Tax on booze - exactly how much is it?

From what I understand the tax is paid at the wholesale level. Mark-up at the retail level is usually done at a percentage, then rounded off(usually up) to attractive numbers like 2.99 etc. So we will probably see items with increases that are proportionately more than the tax itself. A single beer that was 2 dollars will probably go up to 3, even though the sin tax only adds 59 cents to the beer.(these numbers arent accurate its just for example) I dont blame the retailers. Remember with the additional cost of the item, they may sell less, and have to make more on each item now. The effects of this tax remain to be seen....

Even with that, a $3.50 increase seems crazy high. I would blame the retailer! I think they are taking advantage of the situation.

Good thing I drink like maybe 1 glass of wine in a month, these days, and that's it for my alcohol consumption.

Blame the government. Retailers do not like raising prices. In this case the gvt has forced them.

Even with that, a $3.50 increase seems crazy high. I would blame the retailer! I think they are taking advantage of the situation.

Good thing I drink like maybe 1 glass of wine in a month, these days, and that's it for my alcohol consumption.

Luckily, I don't drink. but islandjoan is right: the resulting tax has an additional markup that makes the new price nearly double the original! Anything that smells like a near 100% increase is, in my opinion, the fault of the retailer. This happens a LOT with fuel prices. Any kind of hiccup in the Middle East, and watch how gas prices soar.

Blame the government. Retailers do not like raising prices. In this case the gvt has forced them.

One of the most important business concepts that I've heard or read is: retailers shouldn't charge what it costs to create/obtain the revenue generating inventory...they should charge what they believe their consumers are willing to pay. "Sin Tax" retailers understand that the public is expecting to pay more, so the price jump is extra profiteering...the price is what they expect the general public is willing to pay. The OP didn't look at his cheap wine bottle, say "Oh HELLLL NO", and walk away. The OP still bought the wine. He demonstrated to the retailer that they have the right price, or maybe they need to bump it up slightly until they see a negative consumer shift (that is, the people start saying "oh HELLLL NO" ).

I would be interested in knowing what local bars do to their prices. They sell by the glass or bottle, not the case. I'd expect the prices at bars, casinos, and the like to be more than double!

Sjointer, oh you have it wrong!

I am the OP and I did NOT buy the wine!!!!!
I won't pay nearly double for the same thing. I MIGHT shop around and see how the other retailers marked it up, just out of curiosity.

Also remember if people still buy the marked up items at the same level as before, the retailer will pay additional gross receipts tax because now there monthly gross sales gross has gone up. This additional tax they pay will be passed on to the consumer. We like to blame the retailer but they have to make money or they will go out of business.

And if I find that the same bottle of wine is cheaper elsewhere on island, that will mean that plaza east is ripping us off, because the retailers must all get the same wine from the same distributor(s) and pay the same price.

Adding $3.50 to a bottle of wine when 10% added to price would make it + $.60 /bottle + $5.99 or $6.59. $9.49 is blatant greed.

Bend over -- Apparently the gov't is gonna put it to you & on top of that the some merchants are really gonna hose you.

I agree Jumbie and furthermore, I suspect that most retailers jacked the prices up immediately on May 1, on existing inventory as well as new inventory. I don't think all the booze at plaza was imported with the tax in effect. Surely they have inventory that was in the store before May 1.

Here's a breakdown of the Sin Tax:
$5.00 per case of domestic beer (24 beers)
$6.08 per case imported beer (24 beers)
$0.50 per bottle effectively for wine
$0.50 per bottle of liquor.
$8 per keg of beer
$11 per carton of cigarettes
I can't remember what the soda tax was. Not huge.

I own a business with a liquor license. My distributor came and talked to me about the price increases. It's really not that bad. I'll be raising the price of imported beers I sell by $1, keeping domestic the same (I don't charge cents, all my prices are an even dollar figure). Wines by the glass will not change much, a couple may go up a dollar depending on how I had priced them to begin with. Mixed drinks will depend on the soda increase cost.

The hardship will be for the distributors who have to pay the Sin Tax before the product is released by customs/excise. It amounts to $1000's in extra upfront money. They are going to get a lot stricter with people and balances. I have no clue what plaza, cost u less etc are planning. There was no difference in price today when I went to stock up. But if they raise their prices more dramatically than the distributors, they will lose business from businesses who are able to buy from the distributor.

It's really not that bad and I think people are freaking out over nothing. The final bill was a 57%
Reduction overall from the original bill's figures.

How long will it be before they come up with a "goodness" tax and start taxing the churches?

The Tennis Club gets taxed.
The Yacht Club gets taxed.
The God Club should be taxed.

Foreign Beers – $6.08 per case of 24-12 ounce containers or equivalent
U.S. Beers – $5.00 per case of 24-12 ounce containers or equivalent
Foreign kegs – $8.25 per keg
U.S. kegs – $5.70 per keg
Cigarettes – $11.00 per carton
Carbonated Drinks – $1.44 per case of 24-12 ounce containers or equivalent
Rums, Liquors, vodka and other alcoholic beverages – $6.00 per case

With this the increase on a bottle of wine should be minimal likewise for draft beer or wine by the glass. Retailers deal with lots of inventory, Trying to keep track of old inventory/old price paid and new inventory/new price paid is a lot of work. Much easier to just ball park when to make the price adjustment per item. Changing all the pricing on May 1st would be a bit lazy.

Here's a breakdown of the Sin Tax:
$5.00 per case of domestic beer (24 beers)
$6.08 per case imported beer (24 beers)
$0.50 per bottle effectively for wine
$0.50 per bottle of liquor.
$8 per keg of beer
$11 per carton of cigarettes
I can't remember what the soda tax was. Not huge.

I own a business with a liquor license. My distributor came and talked to me about the price increases. It's really not that bad. I'll be raising the price of imported beers I sell by $1, keeping domestic the same (I don't charge cents, all my prices are an even dollar figure). Wines by the glass will not change much, a couple may go up a dollar depending on how I had priced them to begin with. Mixed drinks will depend on the soda increase cost.

The hardship will be for the distributors who have to pay the Sin Tax before the product is released by customs/excise. It amounts to $1000's in extra upfront money. They are going to get a lot stricter with people and balances. I have no clue what plaza, cost u less etc are planning. There was no difference in price today when I went to stock up. But if they raise their prices more dramatically than the distributors, they will lose business from businesses who are able to buy from the distributor.

It's really not that bad and I think people are freaking out over nothing. The final bill was a 57%
Reduction overall from the original bill's figures.

Its interesting to hear from a business owner that is directly affected by this tax.

It sounds like you will be paying more for your alcohol but not changing prices much. Do you think that the extra money you make on imported beers will offset the less you will be making on the other alcohol?

It sounds like you will be paying more for your alcohol but not changing prices much. Do you think that the extra money you make on imported beers will offset the less you will be making on the other alcohol?

Back to market pricing again, what the buyer is willing to pay. Pricing that was already a little high or had higher margin can probably absorb the tax without change. Pricing that may already have been lower for market and with less margin will probably need a boost.

I get my after work Heineken from Stop & Save across from the Canegata Ball Park. The price is currently $2 and will increase to $3 shortly. Sigh.

How long will it be before they come up with a "goodness" tax and start taxing the churches?

The Tennis Club gets taxed.
The Yacht Club gets taxed.
The God Club should be taxed.

I agree 100%...churches should be taxed like any other business.

Churches are not even required to file annual form 990s like other charitable organizations.

I get my after work Heineken from Stop & Save across from the Canegata Ball Park. The price is currently $2 and will increase to $3 shortly. Sigh.

I get mine from queen bee gas station on center line for $1.50... west is best 😉

same old prices on beer and cigarettes at Pueblo yesterday.

Plaza west today-all the Trapiche wines are $5.99 (except for the "oak barrel" or something like that, which is their higher priced wine.) I couldn't find the Pinot noir so I got the merlot.

Lately plaza west has been beating most of the plaza east prices...these days more than ever you really need to shop around.

The price of Heineken didn't budge at CostUless. 😎

I was at price smart today and a carton of cigs were only $2.00 more than before the sin tax. So I keep hearing $11.00 but so far i haven't seen it

cigarettes and Heinken same price as before at STT CU Less Saturday - coke products were $5.29-- 12 pax however..... $3.98 last week at Pueblo.

So,....if one was to "provision" a sailboat in the BVI and come back to the USVI. What would customs do with a boat full booze,....or even just soda??? Are beverages more or less expensive in the BVI???