We just got back from Los Cabos out in BA.
Our Food total was $22.98, with a separate food tax of $2.93
Our Alcohol total was $11.39, with a separate alcohol tax of $1.54
Now if I'm doing my math right, that equals 12.75% tax on the 'food' and 13.52% on the alcohol?!?!
What gives? Last time I checked, the sales tax for BA was 8.517%
I'm also starting to notice places (like this one) and Red Robin are itemizing the taxes food vs alcohol.
Was there something passed that allows them to charge such a high % of tax?
Why don't you ask Los Cabos? They may have added charge for large group or they may have just made a mistake.
Just the 2 of us :)
And yes, we asked our waitress. She wasn't sure but said that she thinks they itemize it for tipping. She then went on to say that it was the same rate for both food and liquor. We bought that response since it sounded reasonable but on the way home we were doing the math in our heads and realized it was way higher than 8%, so hence had to break out Excel.
Wife's already sent an email to the OTC.
That's interesting....to my knowledge there is a sales tax only. I don't know what they could be adding on there but I would guess it isn't assessed by the government....it's not in Tulsa anyway.
isnt some of that the mixed beverage tax?
Now if I understand you correctly...
you had 22.98 Food
you had 11.39 Alcohol
So you have 34.37 in net sales
whats tax 8.75% or so... about 3.00 in sales tax
and with that 11.39 alcohol
about 1.539 in liquer tax...
Doesn't look like they over charged you at all.
Remember you pay sales tax and liquor tax on alcohol.
Hope this helps
Osupikapp1
My guess is that they are adding in the Oklahoma Tourism Tax to the meal ticket.
Its a separate, monthly state tax that just came about a few years ago, and nobody really understood it within my circle of small business owners.
Turns out, it is something restaurants have to pay to the Oklahoma Tax Commission based on their revenue.
Mike, do you own an '01 Firehawk? 'Cuz that is a sweet ride! [;)]
quote:
Originally posted by Hawkins
My guess is that they are adding in the Oklahoma Tourism Tax to the meal ticket.
Its a separate, monthly state tax that just came about a few years ago, and nobody really understood it within my circle of small business owners.
Turns out, it is something restaurants have to pay to the Oklahoma Tax Commission based on their revenue.
Mike, do you own an '01 Firehawk? 'Cuz that is a sweet ride! [;)]
Tourism Tax
Tourism tax is levied at 1/10 of one percent on the gross receipts received from the sale of food and drink; furnishing of rooms by hotel/motels, etc.; motor vehicle rentals; tour bus and sightseeing passenger carrier tickets; and admission to and sales by private tourist attractions. The tourism promotion tax is a levy on the privilege of doing business, and is not to be added to the sales price and collected from the consumer. Any business contributing to Oklahoma tourism promotion is required to file this tax.
Does BA have an HMR tax (hotel, motel, restaurant) like many cities do, or is that not something that's done in Oklahoma?
Anyone happen to notice this thread was bumped out of inactivity from almost a year ago?
That's weird a new user would bump it out.
Heh...
Wierd New User here...
Didn't think to look at the date..
OOPS.. Noob Mistake.
Osupikapp1
I thought the alcohol tax was supposed to be built in to the price?
See how fantastic it is when we can't figure out what or how much we are paying in taxes? The system is clearly too complex already.
quote:
Originally posted by cannon_fodder
I thought the alcohol tax was supposed to be built in to the price?
How most places do it they are not letting you see the whole picture. Restaurants are required to charge a "consumption sin tax" of 13.5% on all alcohol purchases of high point beverages. So Bud and Miller no xtra tax. But that high point Dos XX and Absolut and Redbull will have the xtra tax.
They figure it based on the cost... say 4.50 for a import should be posted on the reciept as 3.25 or so with .35 in sales tax and nearly a dollar in sin tax.
God I love the Bible belt.
Osupikapp1
FYI, Lanna Thai does the same thing on the tax, at least at their S. Memorial location. That's the first time I ever noticed the higher tax rates.
Los Cabos is one of the few that does the sin tax right. The law states the sin tax has to be built into the menu price. Most of the restaurants around Tulsa add the sin tax above the menu price. The tax commission when asked about this says they are flexible in the way it is done, even though the law states HAS TO.
You also have to watch for places putting sales tax on the liquor tax (tax on tax). This is another violation that the OTC doesn't care about. Talk about a rip off.
This is all spelled out on OSCN (Oklahoma State Courts Network). Search for Title 37 section 576 of the Beverage Control Act.
Here is the spreadsheet I use to figure out if I've been overcharged. You will need the menu price for drinks and the tax rate for that area.
Content Column Code
Beverage (Menu Price) B4 Enter Menu Price
Bev Retail Price B5 =B4-B6
Bev GRT (13.5%) B6 =B4-(B4/1.135)
Bev Sales Tax B7 =B5*0.08517
Food B8 Enter Food Cost
Food Sales Tax B9 =B8*0.08517
Total (Corrected) B10 =B4+B7+B8+B9
B11 =(B4+B8)
B12 Blank
Amount Paid B13 Enter Amount Paid
Difference B14 =B10-B13
If the difference is positive then you are probably at a bar. If it is zero then you must be at Charlstons.
I work in the restaurant computer business & come across this quite often.
When we program computers for restaurants with bars we generally only use two diff tax rates:
Inclusive & Added Percentage
I'll use round #'s to explain...
Lets just say that sales tax & liquor tax were both 10%. If you bought a $10 gls of wine, the restaurant could include both taxes & you would only pay $10 for the drink. However, when the restaurant looks at reports, they will only show $8.33 posted to NET SALES. If you ever go to a bar & each drink price is a round $ amount, this is most-likely what they're doing & it makes it easier on the bartender/cocktail.
They can also mix/match which tax rates get Added or Included. Some will include Liquor Tax but add Sales Tax. Either way you are paying the tax. If they include the Liquor tax, they have to raise the price to compensate.
Sorry to wake this dead horse! Gotta post so I can become a "citizen", etc...
No matter how they want to do it, the law states the menu price must include the 13.5.
Anybody that is putting that on the bill and lowering the menu price has an unfair advantage over the one's doing it by the law!
Strange that the law would support taxing the tax. If the sin tax is included in the menu price and then the sales tax is applied to the entire bill, who gets to keep the 8% that was applied to the 13%?
quote:
Originally posted by cmanson13
No matter how they want to do it, the law states the menu price must include the 13.5.
Anybody that is putting that on the bill and lowering the menu price has an unfair advantage over the one's doing it by the law!
I would like to see the law to know exactly how it's written. But, I don't see why they care how it's shown to the customer. They don't tell you how much to charge the customer...therefore, the tax amount will always vary based on the price. Business is still paying 13.5% to state based on their "net" liquor sales.
quote:
Originally posted by carltonplace
Strange that the law would support taxing the tax. If the sin tax is included in the menu price and then the sales tax is applied to the entire bill, who gets to keep the 8% that was applied to the 13%?
Well depending on the restaurant. If you look at the receipt and it says 4.50 for a beer and you only paid 4.50 they must be using a inclusive price.
But if you look at the receipt and it says 3.23 beer price and then the taxes are listed at the bottom you now see what the restaurant is actually charging for the beer. The final cost is the same, the only difference is what the restaurant lets you see.
I like to see what the real cost is vs the "mystery cost" plus you know if you see liquor tax than you are getting a "strong beer" vs someplace like fox n hound where you pay for a strong beer to be served 3.2 blah
osupikapp1
Beer Price: 3.53
13.5% Sin tax: .47
Menu Price: 4.00
8% Sales Tax: .32
Amount of Sales tax applied to sin tax: .03
Who gets the .03 cents?
quote:
Originally posted by cmanson13
Los Cabos is one of the few that does the sin tax right. The law states the sin tax has to be built into the menu price. Most of the restaurants around Tulsa add the sin tax above the menu price. The tax commission when asked about this says they are flexible in the way it is done, even though the law states HAS TO.
You also have to watch for places putting sales tax on the liquor tax (tax on tax). This is another violation that the OTC doesn't care about. Talk about a rip off.
This is all spelled out on OSCN (Oklahoma State Courts Network). Search for Title 37 section 576 of the Beverage Control Act.
Here is the spreadsheet I use to figure out if I've been overcharged. You will need the menu price for drinks and the tax rate for that area.
Content Column Code
Beverage (Menu Price) B4 Enter Menu Price
Bev Retail Price B5 =B4-B6
Bev GRT (13.5%) B6 =B4-(B4/1.135)
Bev Sales Tax B7 =B5*0.08517
Food B8 Enter Food Cost
Food Sales Tax B9 =B8*0.08517
Total (Corrected) B10 =B4+B7+B8+B9
B11 =(B4+B8)
B12 Blank
Amount Paid B13 Enter Amount Paid
Difference B14 =B10-B13
If the difference is positive then you are probably at a bar. If it is zero then you must be at Charlstons.
I just spoke with OTC & they said that they don't care if it's included or added to the receipt...as long as the restaurant owner can separate the net & tax collected.
Doesn't really matter what the OTC wants to enforce since it has been spelled out for them in a black letter law. The intent of that law was to reduce consumption. By having the price built into the menu the consumer might choose to drink less. Never really worked on me, just makes me choose cheaper drinks, sometimes.
The law does state that the sales tax has to be calculated on the base price (base + sin = menu). So the restaurants charging tax on tax are doing it wrong. The OTC only cares that all taxes are remitted, not that the consumer is paying more than they should.
(d) Example. If the total retail sales price for a mixed drink is $3.00, each drink sold, and each drink served as a "complimentary drink" incurs a Forty-one Cent Gross Receipts Tax which shall be
O AC 710:20 OKLAHOMA TAX COMMISSION
23
added to the total retail price to form an advertised price of $3.41. Sales tax shall be calculated on the total retail price of $3.00. [See: 37 O.S. ยง576]
[Source: Amended at 15 Ok Reg 2800, eff 6-25-98; Amended at 19 Ok Reg 1507, eff 5-25-02]
http://www.tax.ok.gov/rules/rule2006.pdf
bottom of pg 22