Effective Jan. 1, 2014, with the passage of HB 3572, the mixed-beverage gross receipts tax will change from a 14 percent tax paid exclusively by mixed-drink permit holders to a 6.7 percent gross receipts tax paid by the mixed-drink permit holder coupled with a 8.25 percent mixed-beverage sales tax paid by the consumer. This creates a savings for hotels, restaurants and bars, assuming drink prices remain the same, because 8.25 percent of the price can be added to the listed drink price and passed along to the consumer, with a lower percentage of 6.7 percent gross receipts tax paid by the mixed-drink permit holder.
Thus, earnings of 8.25 percent are able to be immediately retained and added to the mixed-beverage permittee's bottom line, assuming the sales tax component is passed along. Another advantage is that 8.25 percent of the current mixed-beverage sales tax will no longer be counted as income, potentially saving money on fees, premiums, rents and taxes that may be calculated based on the gross revenues of the retailer. |