### CHAPTER 7. PRODUCT PRICE DETERMINATION

TABLE OF CONTENTS 7.1 INTRODUCTION ........................................................................................................... 7-1 7.2 METHODOLOGY .......................................................................................................... 7-1 7.2.1 End-User Product Price........................................................................................ 7-1 7.2.2 Sales Tax.............................................................................................................. 7- 5 7.3 PRODUCT PRICE DETERMINATION RESULTS ...................................................... 7-5 7.3.1 End-User Prices for General Service Fluorescent Lamps.................................... 7-5 7.3.2 End-User Prices for Incandescent Reflector Lamps ............................................ 7-8 7.3.3 Sales Tax Results ................................................................................................. 7-9 REFERENCES ..................................................................................................................... ..... 7-11

LIST OF TABLES Table 7.2.1 State and Local Sales Tax Rates .............................................................................. 7-5 Table 7.3.1 End-User Prices for T12 Four-Foot Medium Bipin GSFL ...................................... 7-6 Table 7.3.2 End-User Prices for T8 4-Foot Medium Bipin GSFL ............................................. 7-6 Table 7.3.3 End-User Prices for T5 4-Foot Miniature Bipin Standard Output GSFL ................ 7-7 Table 7.3.4 End-User Prices for T5 4- Foot Miniature Bipin High Output GSFL ...................... 7-7 Table 7.3.5 End-User Prices for T 12 Eight-Foot Single Pin S limline GSFL ............................. 7-7 Table 7.3.6 End-User Prices for T8 Eight-Foot Single Pin S limline .......................................... 7-7 Table 7.3.7 End-User Prices for T12 Eight -Foot Recessed Double Contact High Output GSFL .................................................................................................................... 7-8 Table 7.3.8 End-User Prices for T8 Eight -Foot Recessed Double Contact High Output GSFL .................................................................................................................... 7-8 Table 7.3.9 End-User Prices for PAR38 IRL ............................................................................. 7-9 Table 7.3.10 End-User Prices for PAR30 IRL ........................................................................... 7-9 Table 7.3.11 Regional Average Tax Rates ............................................................................... 7-10

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### CHAPTER 7. PRODUCT PRICE DETERMINATION

7.1 INTRODUCTION

This chapter describes the m ethodology the U. S. Department of Energy (DOE) followed in developing sales tax and end- user prices for lamps and ballas ts considered in the rulemaking analysis for general service fluorescent lamps (GSFL) and incandescent reflector lamps (IRL). This chapter also provides initial results for la mp and ballast end-user prices and sales tax.

In energy conservation standa rd rulemakings, DOE often develops cost-efficiency relationships in the engineering analysis. Then, DOE applies markups to de rive end-user prices. For this lamps rulemaking, DOE obtained end-user pr ice schedules for the vast majority of lamp and ballast designs analyzed. Therefore, instead of estimating costs in th e engineering analysis and marking them up to derive end-user prices, DOE derived efficacy levels in the engineering analysis and end-user prices in the product price determination. By combining the results of the engineering analysis and the product price determination, DOE deri ved typical inputs for use in the life cycle cost (LCC) analysis and the nation al impact analysis (NIA ). In particular, DOE developed lamp designs that have end-user prices and are associated with an efficacy level (EL).

7.2 METHODOLOGY
The end-user price is the average price a consumer pa ys before sales tax. DOE obtained public end-user price schedules fr om distributors, State contract s, and other publicly available information sources. In addition, DOE obtained copies of suggested retail and large-user price lists (sometimes referred to as “blue books”) fr om manufacturers, and distributor pricing for commercial, industrial and institut ional buyers. Distribu tor pricing refers to the price that a distributor would pay. DOE us ed these pricing sources to derive end-user prices. To account for variability in pricing, DOE es timated three end-user prices per lamp. DOE applied sales tax to each end-user price. Then, DOE applied inst allation costs, where necessary, to derive total installe d costs, which are used in the LCC and NIA. The life cycle cost analysis in Chapter 8 details installation and total costs.

7.2.1 End-User Product Price
Starting from a consistent set of prices in the blue books, DOE looked at publicly available prices in State procurement contracts, at large electrical supp ly distributors, homeimprovement/hardware stores, and other sources of publicly availa ble end-user prices such as Internet retailers. In its review of publicly available market prices, DOE observed a range of end-user prices paid for a lamp, depending on the distribution channel through which it is purchased and the volume at which it is purcha sed. DOE observed that State procurement contracts typically offered a di scount of around 70 to 90 percent off the blue book. In the vast majority of instances, these discounts apply uniformly to all products on a price schedule irrespective of the volume of a particular lamp. Consumer prices were generally higher at Internet retailers, electrical s upply distributors, and home-imp rovement/hardware stores.

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### Furthermore, these channels usually apply di fferent discounts to lamps depending on sales volume. Since many high efficacy lamps are “n iche” products, DOE observed that they were generally less discounted than commodity lamps.

In line with its observation of public pricing, DOE developed three sets of discounts from the blue books, representing the range of low, medium, and high lamp prices for all three categories of lamps. For IRL, commercially av ailable products did not span the full range of efficacies considered. For those lamps for which commercial pricing was unavailable, DOE extrapolated pricing from av ailable lamps. Subsections 7.2.1.1 and 7.2.1.2 describe the developm ent of low, medium and high prices specific to each lamp type.

DOE observed that higher efficacy lamps receive higher markups ( i.e ., lower discounts off of the blue book list price) than more common, lower efficacy product. However, DOE recognizes that that once an energy conservation standard is enacted, the higher efficacy lamps will become the commodity product. Therefore, to reflect future commoditization of higher efficacy lamps when they become the minimum complying products, DOE applied the same discount off of the blue book list price to derive low, medium, and high prices for higher efficacy and lower efficacy lamps. (Baseline incandescent lamps received a slightly larger discount, as State procurement contracts reflect).

For small diameter IRL ( i.e. parabolic aluminized reflector (PAR)30), DOE accounted for the future commoditization of lamps under an energy conservation standard by using the incremental pricing of larger diameter IRL ( i.e. , PAR38). DOE’s resear ch indicated that the market for high efficacy larger diameter IRL is well developed compared to the high efficacy small diameter IRL market. In addition, both small and larger diameters IRL use the same fundamental technologies. Therefore, by using th e incremental pricing of large diameter IRL to develop pricing for small diameter IRL, DOE is able to account for the commoditization of high efficacy residential IRL under an energy conservation standard.

Once DOE calculated end-user prices, DOE added sales tax and, where appropriate, installation costs, to derive the total, installed end-user cost. DOE used the medium lamp prices for the reference case in the LCC, and analyzed lo w and high lamp prices to ascertain the impact of these other price points (see ch apter 8). In the NIA (chapter 10), DOE used only the medium prices. DOE also developed a single average en d-user price for the new and replacement ballasts used and for the reflector compact fluorescent lamps (CFL) and a 65W BR30 lamp analyzed in the NIA; DOE added sales tax and installation costs to each. Results for pricing impacts of CFL, the 65W BR30 lamp, and ballasts ar e available in Appendix 7A.

7.2.1.1 General Service Fluorescent Lamps As stated earlier, to establish end user pri ces, D OE started of with retail and large-user manufacturer price lists, or blue book prices. However, DOE used an alternative method to calculate the blue book price of the halophosphor 4-foot T5 mi niature bipin (MiniBP) lamps (both standard output (SO) a nd high output (HO)) because, to DOE’s knowledge, these lamps are not currently commercially available. To calcula te the price of this lamp, DOE considered the price differential between the halophosphor 34 W 4-foot medium bipin (MBP) T12 lamp and the highest efficacy, 800 series 34W 4-foot MBP lamp. To calculate the blue-book price of a

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### halophosphor T5 lamp, DOE applied this same price differential, in the form of a scaling factor, to the blue-book prices of the existing 800 series T5 lamps.

To develop low-range prices for GSFL, DOE calculated a discount off the blue book consistent with prices found in State procurem ent contracts. DOE mirrored the procurement discount schedule by using a constant discount across lamp efficacies. As noted above, DOE believes that this discount schedu le reflects currently available pricing and takes into account commoditization of standards-compliant lamps. Consistent with State procurement contracts, DOE assumed that these low-range prices include a distributor markup but no contractor markup. As such, this is a lower bound of pricing th at assumes the most favorable conditions.

For medium-range prices, DOE discounted th e blue book price consistent with the distributor pricing DOE received. This represen ts a typical discount for commercial institutions on high volume (commodity) lamps. Again, DOE used a single di scount across efficacies. DOE added a contractor markup of 13 percent so th at the resulting price would encompass both a contractor and distribut or markup. DOE obtained this cont ractor markup estimate from the Ballast Rule published on September 19, 2000. 65 FR 56740. 1



### For the high-range prices, DOE calculated discounts on commodity lamps from blue book prices for small quantity pur chasers by observing Inte rnet pricing and obt aining distributor quotes. These prices also encompass both a cont ractor and a distributor markup. DOE obtained data on actual prices for all GSFL it considered in the analyses.

7.2.1.2 Incandescent Reflector Lamps
For IRL, DOE m odeled the residential and co mmercial markets as being comprised of PAR30 IRL and PAR38 IRL. DOE calculated the low-range price for large diameter IRL as it did for GSFL. DOE compared State procurement contracts to blue books to develop an average discount. For the medium-range price, DOE discounted the blue book price to represent shipment weighted-average prices consumers pa id for commonly available lamps. For the highrange prices, DOE discounted the blue book price so th at prices are in line with observed Internet pricing.

For PAR30 IRL, DOE used a slight varia tion to the methodology followed for GSFL and PAR38 IRL. In particular, to develop the PA R30 baseline lamp price, DOE used the price differential between an incandescent (non-haloge n) bulged reflector ( BR)40 lamp and halogen PAR38 lamp. DOE added this price differentia l to an incandescent (non-halogen) BR30 lamp price to obtain the baseline halogen PAR30 lamp pr ice. By developing pr ices for the baseline lamps from the incandescent replacement lamp s (BR30 and BR40 lamps), DOE is recognizing that the high-volume product currently being sh ipped may be a lower-efficacy (non-halogen) incandescent lamp. Therefore, basing prices off of this lamp will most accurately represent the commoditization of the halogen PAR30 by 2012 (the effective date of the amended standard). Similarly for higher-efficacy lamp designs, DOE de veloped a list price to discount from based on the incremental blue book prices of PAR38 IRL. As such, DOE added the incremental end-user blue book price of PAR38 lamps to the baseline PAR30 lamp price to derive higher-efficacy

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### PAR30 lamp list prices. DOE chose this methodology for PAR30 IRL because for PAR30 lamps, four of the standards- compliant lamps were not commerc ially available. In addition, PAR30 lamps use the same fundamental technol ogies as PAR38 lamps, which serve a more developed market.

DOE was able to use the above methodology for all lamps, except for the EL1 improved halogen lamp (with xenon), the EL2 6,000 hour long- life halogen infrared reflector (HIR) lamp, the EL5 the improved HIR plus lamp, and the ba seline lifetime lamp models at EL4 and EL5. For EL1, EL5, and the baseline lifetime lamp mo dels DOE did not ha ve available blue-book prices. For the EL2 long-life HIR lamp, DOE believed that an alternate price, different than that which is reflected by current blue book prices, would be more appropriate. Therefore, DOE applied alternative methodologies to establis h end-user prices for these lamps.

As described in the Engineering Analysis, chapter 5 of the TSD, DOE generates three model IRL, representative of ha logen IRL with a higher-efficiency fill gas composition, namely xenon. Through manufacturer interviews, DOE estim ated the quantity of xenon that would be required to achieve EL1 and the corresponding manu facturing price of that xenon for each IRL. DOE, then applied a markup (from manufacturing co st to end-user price) to establish the incremental price of an improved halogen lamp with xenon over a conventi onal halogen lamp.

Current blue-book prices show significantly higher prices for the EL2 6,000 hour longlife HIR lamps than the EL3 standard HIR la mps. However, to DOE’s knowledge, the two lamps use similar technologies, and base on ma nufacturer interviews, extending or shortening lamp life (which when compensating with an asso ciated decrease or increa se in efficacy) is a near costless change. For this reason, to reflect the commoditi zed price of the long-life HIR lamp (currently, a relatively low volume product) DOE used the same blue-book prices for both the EL2 long-life HIR lamps and the EL3 standard HIR lamps.

Regarding the EL5 improved HIR lamp, DOE did not have available a blue-book price for this lamp. Therefore it was necessary to ca lculate a blue book pri ce for the PAR38 improved HIR plus lamp. To do this, DOE identified thre e online distributors that sold the improved HIR plus lamp and also sold lamps at all other e fficacy levels. As both the EL4 improved HIR lamps and the EL5 improved HIR plus lamps use similar technology and are both marketed as premium products, DOE applied the discount off of blue book each distributor used at EL4 to the EL5 internet lamp prices to calculate representa tive blue book price for EL5 lamps. Since these discount levels varied among the distributors , DOE calculated a potential blue book price for each distributor based on their price of the impr oved HIR plus lamp and their blue book discount for the EL4 lamp. DOE then averaged these thre e prices to create a blue book price for a PAR38 improved HIR plus lamp. The blue book pri ce for a PAR30 improved HIR plus lamp was calculated using the method described above.

For the baseline lifetime lamp designs at EL4 and EL5, there were no commerciallyavailable lamps and blue book prices on which to base the end-user prices. However, because the baseline lifetime lamp designs use similar technologies as the comm ercial lifetime lamp designs of EL4, DOE assumed that their end-user prices would be similar as well. As discussed

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### earlier, DOE believes that shorte ning the lifetime of a lamp is a near costless change for the manufacturer.

7.2.2 Sales Tax
The sales tax represents State and local sales taxes applied to the end-user product price. It is a multiplicative factor that increases the end-user product price. DOE obtained information on State and local sales tax from the Sales Tax Clearinghouse. 2 

### Table 7.2.1 shows the rates. These data represent weighted averages that incl ude county and city rates. DOE then calculated population-weighted av erage tax values for each Census division and four large States. Developing this distribution allowed DOE to co rrelate the sales tax distribution with the electricity price distribution (s ee Chapter 8), and the operating hour distribution (see Chapter 6) DOE uses in the LCC spreadsheet. DOE also calculated a national, popul ation-weighted average sales tax for use as a single-val ue input to the LCC, should user s want single-average results. DOE also used this result in the NIA, wh ere DOE did not use a distribution of inputs. 3



### Table 7.2.1 State and Local Sales Tax Rates

State Combined State and Local Tax Rate

% State Combined State and Local Tax Rate

% State Combined State and Local Tax Rate

% Alabama 8.15 Kentucky 6.00 North Dakota 5.75
Alaska 1.45 Louisiana 8.70 Ohio 6.80
Arizona 7.15 Maine 5.00 Oklahoma 8.10
Arkansas 8.20 Maryland 6.00 Oregon 0.00
California 8.00 Massachusetts 5.00 Pennsylvania 6.25
Colorado 6.40 Michigan 6.00 Rhode Island 7.00
Connecticut 6.00 Minnesota 6.85 South Carolina 6.90 Delaware 0.00 Mississippi 7.00 South Dakota 5.50
Dist. Of Columbia 5.75 Missouri 7.05 Tennessee 9.40
Florida 6.70 Montana 0.00 Texas 8.00 Georgia 6.95 Nebraska 6.00 Utah 6.70 Hawaii 4.40 Nevada 7.50 Vermont 6.05
Idaho 6.05 New Hampshire 0.00 Virginia 5.00
Illinois 8.40 New Jersey 6.95 Washington 8.50
Indiana 7.00 New Mexico 6.40 West Virginia 6.00
Iowa 6.75 New York 8.25 Wisconsin 5.40
Kansas 6.90 North Carolina 6.80 Wyoming 5.35



### 7.3 PRODUCT PRICE DETERM I NATION RESULTS

Sections 7.3.1 and 7.3.2 present the low-, medium-, and high-range end-user prices D OE used to analyze each lamp design it considered in the LCC and NIA. The prices do not include tax. Section 7.3.3 provides the sales taxes DOE used in its analyses.

7.3.1 End-User Prices for General Service Fluorescent Lamps The following tables present the e nd-user price results for GSFL.

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### Table 7.3.1 End-User Prices for T 12 Four-Foot Medium Bipin GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI* Mean Lamp Light Output Low Price Medium Price High Price
lm/W** W hrs lm 2007$ 2007$ 2007$ T12 40W Commercial Baseline 78.0 41 20,000 70 2,880 1.41 2.35 3.28
T12 40W Residential Baseline 76.8 41 15,000 70 2,860 1.12 1.86 2.61
T12 34W Baseline 77.9 34 20,000 62 2,300 0.89 1.49 2.09
1 80.5 41 20,000 80 3,000 2.64 4.41 6.17

1 82.4 34 20,000 70 2,460 1.58 2.64 3.70
1 82.9 41 24,000 80 3,060 3.51 5.86 8.20

2 85.3 34 20,000 80 2,610 2.90 4.83 6.76
2 87.8 41 24,000 85 3,250 3.57 5.95 8.33
3 91.2 34 24,000 85 2,790 3.50 5.83 8.16 * CRI = color rendering index ** lm/W = lumens per Watt



### Table 7.3.2 End-User Prices for T8 4-Foot Medium Bipin GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$ T8 32W Baseline/EL 2 86.2 32.5 20,000 75 2,520 1.03 1.72 2.41
3 90.8 32.5 20,000 82 2,710 1.61 2.69 3.77

4 92.3 32.5 24,000 85 2,850 1.69 2.82 3.95
4 93.0 26.6 30,000 85 2,350 2.56 4.26 5.96

4 93.8 30.4 20,000 82 2,680 1.85 3.09 4.32
5 95.4 32.5 24,000 82 2,915 1.99 3.31 4.63
5 96.0 28.4 18,000 82 2,560 1.74 2.9 4.06

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### Table 7.3.3 End-User Prices for T5 4-Foot Miniature Bipin Standard Output GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$

Baseline 86.0 27.8 20,000 62 1,674 0.86 1.44 2.02

1 104.3 27.8 20,000 85 2,660 1.92 3.20 4.48
2 109.7 27.8 20,000 85 2,898 2.54 4.23 5.92

2 111.5 26.0 25,000 85 2,660 2.40 4.00 5.60



### Table 7.3.4 End-User Prices for T5 4-F oot Miniature Bipin High Output GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$

Baseline 76.6 53.8 20,000 62 2,885 1.16 1.93 2.70

1 92.9 53.8 20,000 85 4,600 2.57 4.28 5.99

1 98.0 51.0 20,000 85 4,600 3.80 6.33 8.86



### Table 7.3.5 End-User Prices for T12 Ei ght-Foot Single Pin Slimline GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$

T12 75W Baseline 85.6 75.0 12,000 70 5,906 3.28 5.47 7.66
1 87.3 75.0 12,000 80 6,157 5.07 8.45 11.83
T12 60W Baseline/EL 1 87.6 60.5 12,000 62 4,664 1.93 3.21 4.49
2 92.0 75.0 15,000 80 6,370 5.60 9.34 13.07

2 92.6 60.5 12,000 70 5,152 3.24 5.40 7.56
3 97.5 60.5 15,000 73 5,480 4.20 7.00 9.80



### Table 7.3.6 End-User Prices for T8 Eight-Foot Single Pin Slimline

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$

T8 59W Baseline / EL 3 94.8 60.1 15,000 75 5,130 2.32 3.87 5.42

4 98.2 60.1 15,000 82 5,428 3.55 5.92 8.28
5 101.5 60.1 18,000 85 5,795 4.03 6.72 9.41
5 101.8 57.0 24,000 81 5,450 3.66 6.10 8.54
5 103.6 55.0 18,000 82 5,415 3.43 5.72 8.00

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### Table 7.3.7 End-User Prices for T12 Eight-F oot Recessed Double Contact High Output GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$

T12 110W Baseline 80.1 113 12,000 70 8,145 3.86 6.44 9.02
T12 95W Baseline 82.5 97 12,000 62 6,950 2.23 3.72 5.20
1 83.2 113 12,000 80 8,648 7.10 11.84 16.57

2 86.1 97 12,000 70 7,515 3.95 6.59 9.22
3 87.6 97 12,000 80 7,650 7.41 12.35 17.29
3 88.9 97 12,000 85 7,750 7.59 12.64 17.70



### Table 7.3.8 End-User Prices for T8 Eight-F oot Recessed Double Contact High Output GSFL

EL Lamp Efficacy Lamp Power Lamp Lifetime CRI Mean Lamp Light Output Low Price Medium Price High Price
lm/W W hrs lm 2007$ 2007$ 2007$

4 91.9 86 24,000 78 7,100 3.94 6.57 9.19

4 93.0 86 18,000 75 7,200 4.03 6.72 9.41
5 95.3 86 18,000 86 7,800 4.84 8.07 11.30



### 7.3.2 End-User Prices for Incandescent Reflector Lamps
W ithin the range of IRL lamp wattages anal yzed, DOE observed that lamp price did not vary significantly by wattage. As a result, DOE did not vary price by watt age in its analysis.

In establishing baseline IRL pr ices, DOE noted a difference in the blue book prices of the large diameter IRL and small diameter IRL, t hough they both use the same technologies. DOE incorporated this observation in its pricing by discounting th e two observed blue book prices separately, and maintaini ng a price differential in the baselines of those sectors. As noted above, for PAR30 lamps, three lamp designs (two impr oved halogen lamps and one HIR lamp) were not commercially available. Therefore DOE could not directly discount blue book prices for these lamps. However, PAR30 lamps use the same fundamental technologies as PAR38 lamps— higher efficacy lamps characteri stic of the commercial sector that serve a more developed market. DOE was able to derive prices for higher efficacy PAR30 lamps by adding the same incremental end-user price for the PAR38 lamps.

Table 7.3.9 presents the end-user price re su lts for the PAR38 lamps, while Table 7.3.10 presents the end-user p rice re sults for the PAR30 lamps.

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### Table 7.3.9 End-User Prices for PAR38 IRL
Lamp Type Lamp Shape EL Lamp Lifetime Low Price Medium Price High Price hrs 2007$ 2007$ 2007$ Halogen PAR38 Baseline 2,500 3.20 4.80 6.40 Improved Halogen (Xenon) PAR38 EL 1 2,500 3.79 5.68 7.57 Long-Life HIR PAR38 EL 2 6,000 4.18 6.26 8.35 Improved Halogen (Silver) PAR38 EL 2 3,000 4.07 6.10 8.13 HIR PAR38 EL 3 3,000 4.18 6.26 8.35 Baseline-Life Improved HIR PAR38 EL 4 2,500 5.00 7.50 10.00 Improved HIR PAR38 EL 4 4,000 5.00 7.50 10.00 Baseline-Life Improved HIR Plus PAR38 EL 5 2,500 5.00 7.50 10.00 Improved HIR Plus PAR38 EL 5 4,200 5.35 8.03 10.70



### Table 7.3.10 End-User Prices for PAR30 IRL
Lamp Type Lamp Shape EL Lamp Lifetime Low Price Medium Price High Price hrs 2007$ 2007$ 2007$ Halogen PAR30 Baseline 3,000 2.82 4.23 5.64 Improved Halogen (Xenon) PAR30 EL 1 3,000 3.41 5.11 6.82 Long-Life HIR PAR30 EL 2 6,000 3.80 5.70 7.60 Improved Halogen (Silver) PAR30 EL 2 3,000 3.69 5.53 7.38 HIR PAR30 EL 3 3,000 3.80 5.70 7.60 Baseline-Life Improved HIR PAR30 EL 4 3,000 4.62 6.93 9.24 Improved HIR PAR30 EL 4 4,000 4.62 6.93 9.24 Baseline-Life Improved HIR Plus PAR30 EL 5 2,500 4.62 6.93 9.24 Improved HIR Plus PAR30 EL 5 4,200 5.16 7.46 9.95



### 7.3.3 Sales Tax Results

Table 7.3.11 shows the distribution of sales tax rates DOE developed for the LCC and payback period (PBP ) analyses. The distribution ranges fr om a minimum of zero percent to a maximum of 8.37 percent with a weighted average value of 6.98 percent. DOE used the average value of 6.98 percent in the NIA.

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### Table 7.3.11 Regional Average Tax Rates

Division or Large State Name Division Weighted Sales Tax ( % ) New England 4.98
Mid Atlantic 6.54
East North Central 6.93
West North Central 6.74
South Atlantic 6.19
East South Central 7.89
West South Central 8.37
Mountain 6.46
Pacific 5.06
New York State 8.25
California 8.00
Texas 8.00
Florida 6.70 U.S. Average 6.98

### REFERENCES

1 

### U.S. Department of Energy-Office of En ergy Efficiency and Renewable Energy. Energy Conservation Program for Consumer Pr oducts: Technical Support Document: Energy Efficiency Standards for Consumer Products: Fluorescent Lamp Ballast Proposed Rule. January, 2000. Washington, D.C. http://www.eere.energy.gov/bu ildings/appliance_standard s/residential/pdfs/chap3.pdf

2 

### Sales Tax Clearinghouse. Aggregate State Tax Rates . 2009. (Last accessed February 20, 2009). http://thestc.com/STrates.stm

3 

### U.S. Census Bureau: Population change : April 1, 2000 to July 1, 2008. July 1, 2008. (Last accessed February 20, 2009). Washington, D.C. http://www.census.gov/popest/state s/files/NST-EST2008-popchg2000-2008.csv

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