Restaurant Alcohol and Food Tax higher than 10%?!?

[Mike 01Hawk]

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?

[waterboy]

Why don't you ask Los Cabos? They may have added charge for large group or they may have just made a mistake.

[Mike 01Hawk]

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.

[TulsaSooner]

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.

[brunoflipper]

isnt some of that the mixed beverage tax?

[Osupikapp1]

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

[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! []

[joiei]

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.

[nathanm]

Does BA have an HMR tax (hotel, motel, restaurant) like many cities do, or is that not something that's done in Oklahoma?

[Conan71]

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.

[Osupikapp1]

Heh...
Wierd New User here...
Didn't think to look at the date..
OOPS.. Noob Mistake.
Osupikapp1

[cannon_fodder]

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.

[Osupikapp1]

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

[Conan71]

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.

[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.

Code Select Expand


 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.