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Impacts of state laws on the consumption of wine per capita
Author(s) -
FOLWELL RAYMOND J.,
HARDY AMOS R.,
McCRACKEN VICKI A.,
PRICE DAVID W.
Publication year - 1991
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1991.tb00652.x
Subject(s) - excise , per capita , wine , consumption (sociology) , product (mathematics) , state (computer science) , business , commerce clause , agricultural economics , sales tax , authorization , economics , constitution , ad valorem tax , commerce , public economics , law , tax reform , food science , macroeconomics , federalism , political science , population , social science , mathematics , computer security , algorithm , chemistry , sociology , computer science , geometry , politics , demography
Wines are exempt from the Commerce Clause of the U.S. Constitution, as are tobacco and firearms. Each state can regulate the commerce including the taxation, pricing, and authorized sales agencies of such products. This paper examines the impact of taxation levels and other regulations on the consumption of wine per capita in six selected states. Each state is composed of a different set of consumers who react differently to tax levels and retail price levels, as well as product availability. In general, sales tax and excise tax on wine were found to have decreasing impacts on wine consumption. Greater product availability made possible by relaxation of off‐sale authorization regulations had an increasing impact on wine consumption.