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View Poll Results: How bad would sales tax on your bar tab piss you off?
I would rant and piss and moan and never go to that bar again. 2 5.41%
I would be peevish and probably go to that bar less. 3 8.11%
I would just switch to cash at that bar. 15 40.54%
I wouldn't care at all. 15 40.54%
I only drink Tequila Rose in the tub with Gaz. 2 5.41%
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Old 07-28-2013, 04:18 PM   Topic Starter
AustinChief AustinChief is offline
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Would this piss you off if a bar....

Would it piss you off if a bar charged 8.25% sales tax (normal in Texas) on credit card tabs but ate the sales tax themselves on cash purchases?

To clarify a bit... CURRENTLY all bars here eat the tax on ALL purchases... it has to be built into the price. They aren't allowed to break it out but that all changes January 1st.
Of course it would be a complete pain to add sales tax to cash purchases but a no brainer for cc purchases.

But let's assume consumers are completely ignorant of any changes in tax code. They only see that now their credit card tabs have sales tax added. I understand a certain amount of people will be pissy but how bad would you rate the backlash?
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Old 07-28-2013, 04:20 PM   #2
TribalElder TribalElder is offline
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Most people using cards probably wouldn't notice. Especially if they run up a large tab.

Cash is king and cards cost a transaction fee.

I see gas stations offer lower prices for cash vs credit
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Old 07-28-2013, 04:24 PM   #3
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I'd hesitate to do it unless I knew that I had a very devoted and fairly upscale clientele. It would help as well if I knew that they didn't have a tribal leader whose departure might trigger a mass exodus.

I think it's a good idea in a vacuum. I would be okay with it personally.
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Old 07-28-2013, 04:27 PM   #4
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The establishment does not eat the tax. As you say, it is built into the price, just as it is when they buy from their retailer. No one is eating the tax.
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Old 07-28-2013, 04:30 PM   #5
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Originally Posted by Raiderhader View Post
The establishment does not eat the tax. As you say, it is built into the price, just as it is when they buy from their retailer. No one is eating the tax.
yes, I simply mean that if the business charges $2 for a beer they pay the tax out of tat $2. In this new scenario that would still be true except that they could recoup 8.25% from the customer when doing credit cards. (since the machine can do all that automatically for them it wouldn't be a hassle)

btw here is what is REALLY happening. Texas in it's infinite wisdom has switched from the 14% flat tax on all alcoholic purchases in bar that has mixed beverages to a 6.7% tax PLUS an 8.25% "sales tax" that you can pass on to customers. That's all fine and dandy for restaurants or maybe hotel bars but not for your average bar. You don;t want to sell a $2 beer and then ask them for $2.16. SO you end up paying the tax out of the $2 which sucks because now you just got your taxes raised a point. So I was wondering "what if the bar simply added it to cc transactions?" Even if everyone switched to cash you would still be saying money because the .95% extra tax you are paying next year would be offset by the 2-3% you would save on CC transaction fees. BUT if everyone continued to use credit cards... then the taxes you pay would actually be dropping from 14% to 6.7% because the consumer would pick up the 8.25%.
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Old 07-28-2013, 04:32 PM   #6
Lex Luthor Lex Luthor is offline
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I can imagine that at least one pissed off customer would cause a scene every single day.

It sounds like a headache to me.
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Old 07-28-2013, 04:36 PM   #7
Raiderhader Raiderhader is offline
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Originally Posted by AustinChief View Post
yes, I simply mean that if the business charges $2 for a beer they pay the tax out of tat $2. In this new scenario that would still be true except that they could recoup 8.25% from the customer when doing credit cards. (since the machine can do all that automatically for them it wouldn't be a hassle)
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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Old 07-28-2013, 04:42 PM   #8
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Quote:
Originally Posted by Raiderhader View Post
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.
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.
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Old 07-28-2013, 04:50 PM   #9
Raiderhader Raiderhader is offline
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Quote:
Originally Posted by AustinChief View Post
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.
First: fuck those assholes at TABC. Idiotic, entrapping bureaucrats.

Second: You cannot possibly believe that the current 14% tax is not factored into your alcohol sales and passed onto the customer already?

Third: I do not see the problem with the cash transactions. The computers can easily add that on for cash as they can credit cards. Unless I am still missing something here?
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Old 07-28-2013, 04:33 PM   #10
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The establishment does not eat the tax. As you say, it is built into the price, just as it is when they buy from their retailer. No one is eating the tax.
Exactly.

The business would be raising prices. Period. Better be a damn good bar, a really good damn bar, or I'm finding a new one.
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Old 07-28-2013, 04:37 PM   #11
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Exactly.

The business would be raising prices. Period. Better be a damn good bar, a really good damn bar, or I'm finding a new one.
look at it from the bar's perspective. It's either THAT or ACTUALLY raise prices because the state doesn't care and the TAXES ARE GOING UP.

So your $2 beer is either going up to $2.25 or $2.00+$.16 in tax.
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Old 07-28-2013, 04:41 PM   #12
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look at it from the bar's perspective. It's either THAT or ACTUALLY raise prices because the state doesn't care and the TAXES ARE GOING UP.

So your $2 beer is either going up to $2.25 or $2.00+$.16 in tax.
They are actually raising prices. If it's warranted because of outside factors, OK. But breaking up the tax has nothing to do with it, IMO.

Just my thoughts. Not saying I'm definitively right on this.
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Old 07-28-2013, 04:47 PM   #13
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Originally Posted by DeezNutz View Post
They are actually raising prices. If it's warranted because of outside factors, OK. But breaking up the tax has nothing to do with it, IMO.

Just my thoughts. Not saying I'm definitively right on this.
Read my recent posts, I think I wasn't making my self clear enough before.
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Old 07-28-2013, 04:50 PM   #14
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...the state doesn't care and the TAXES ARE GOING UP.

So your $2 beer is either going up to $2.25 or $2.00+$.16 in tax.
That has to be the message. The state doesn't care. The state doesn't care. The state doesn't care. TAXES ARE GOING UP. This bar is taking action against this bullshit.

Now, raise the price and find a hook that puts the extra 16 cents to work against a state that doesn't care. Make it into a movement that works against the tax and every beer sold contributes in some way to the movement. Hell, in the right kind of a setting with the right kind of message you could even make the 16 cents a voluntary contribution to the cause. It's 16 cents.

Posters of Roosevelt, Jefferson and Lincoln (the faces on the dime, nickel and penny) speaking out against the added cost come to mind.

On the other hand, I don't know. It might not be that kind of bar.
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Old 07-28-2013, 08:37 PM   #15
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Quote:
Originally Posted by AustinChief View Post
look at it from the bar's perspective. It's either THAT or ACTUALLY raise prices because the state doesn't care and the TAXES ARE GOING UP.

So your $2 beer is either going up to $2.25 or $2.00+$.16 in tax.
Where can I buy a beer for $2 dollars? Last night they were $8 for domestic and $9 for import.



And to answer your question, no. If I liked the bar, I wouldn't care about a few extra cents (or dollars).
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