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How to price 17% retail licensing fee. Presented by: Jan Gee- President & CEO. Liquor Privatization Update May 23, 2012. Flow of the Spirits Taxes & Fees Proper calculation of the 17% retail licensing fee. Tribal Liquor Sales.
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How to price 17% retail licensing fee Presented by: Jan Gee- President & CEO
Liquor Privatization UpdateMay 23, 2012 • Flow of the Spirits Taxes & Fees • Proper calculation of the 17% retail licensing fee. • Tribal Liquor Sales. • See Dept. of Revenue guidance: http://dor.wa.gov/Docs/Pubs/Spirits/SpiritTax_Tribes.pdf • General Q & A? • Contact: Jan Gee at (253) 209-5079 or jangee@wa-food-ind.org
Following the Flow of Spirits Taxes & Fee Following is an example of how selling price and spirits sales revenue would be determine for tax collection and license fee purposes on a typical spirits sale to a member of the general public. Wholesale cost of goods sold: $10.00 Retail markup (which may include): $ 5.00 Costs for federal, state and local taxes 17% retail license fee (see below $2.55) Business expenses Additional markup for desired profit Total selling price: $15.00 Total price paid by the consumer $20.90 • Includes $5.90 in consumer spirits taxes Spirits taxes remitted to DOR $ 5.90 • Includes: $2.83 proportional spirits liter tax on 750 ml ($3.77 per liter) $3.08 spirits sales tax on the $15 selling price (20.5%) License fees paid to LCB $ 2.55 • The licensing fee is determined by multiplying the $15 total selling price by the 17% licensing fee.
