Truncated conical vessels are commonly used as liquid containers in elevated tanks. Despite the widespread use of this type of structure worldwide, no direct code provisions are currently available covering its seismic analysis and design. The purpose of the current study is to assess the importance of considering the vertical component of ground accelerations when analyzing and designing this type of water-storage structure. The study is conducted using an equivalent mechanical model that estimates the normal forces that develop in the tank walls when subjected to vertical excitation. In addition, a three-dimensional finite element model has been developed by modeling the walls of the tank using shell elements. The finite element model has been employed to predict maximum membrane and overall meridional stresses due to both hydrodynamic and hydrostatic pressure distributions. Comparisons have been conducted to assess the significance of considering vertical excitation and to identify the magnification in meridional stresses due to bending effects associated with support conditions and large deformations.