Quote:
Originally Posted by Raiderhader
Obviously as I am not in that business down there any longer I am unfamiliar with these new changes. And the way you are describing it is confusing me a little. Because you still keep saying eating and recouping. There is no eating or recouping because it is all figured into the price. That two dollar beer is set at two dollars factoring in the 8.25% tax. Just as the .79 cents a bottle the bar bought it for factored in the the tax.
I'm just not following what you are saying.
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Ok let me go again and try to be clear.
Current Texas law is... Bars do NOT pay sales tax on alcohol. Period. They pay a flat 14% TABC tax on anything with alcohol in it. Beer, Wine, booze. This is only for mixed beverage bars. Beer and Wine only places only pay whatever regular city/state sales tax ends up being... they may as well be selling sno cones so let's ignore them.
Starting January 1st. The law goes screwy. The flat TABC tax goes to 6.7% BUT you also have to collect 8.25% "sales tax" of course it really isn't sales tax because it still goes directly to TABC and still applies across the board to all alcohol. So basically they just popped every bar for an additional .95% in tax. BUT they give you an out by letting the bar pass the 8.25% to the customers just like regular businesses do.
The problem is that you can't do that easily on cash purchases but you can on credit cards.