Hopcat

Bars, wine, beer, cocktails, drunken escapades
roadkill bill
Forum God/Goddess
Posts: 1707
Joined: Wed Dec 18, 2002 11:33 pm
Contact:

Re: Hopcat

Postby roadkill bill » Thu Aug 06, 2015 6:02 pm

Maybe someone with actual knowledge of Wisconsin sales tax law can confirm or refute this, but my understanding was that sales tax was not charged on alcohol sold in bars or restaurants.

That's why so many supper clubs with handwritten tabs will total the booze up on the back, the food on the front, add tax to the food, and THEN add the booze total under the food + tax total for a grand total.

Another gift to the Tavern League, but also because somewhere in the 3-tier distribution system the tax has already been paid.

My guess is that Hopcat can't legally charge sales tax on the beer. Maybe they don't know that, and will find out when they start paying their sales tax. Maybe they never set up their computers to charge correctly. Or maybe they are pocketing the 5%.

HawkHead
Forum God/Goddess
Posts: 2159
Joined: Tue Jun 05, 2012 1:29 pm

Re: Hopcat

Postby HawkHead » Fri Aug 07, 2015 8:15 am

roadkill bill wrote:Maybe someone with actual knowledge of Wisconsin sales tax law can confirm or refute this, but my understanding was that sales tax was not charged on alcohol sold in bars or restaurants.

That's why so many supper clubs with handwritten tabs will total the booze up on the back, the food on the front, add tax to the food, and THEN add the booze total under the food + tax total for a grand total.

Another gift to the Tavern League, but also because somewhere in the 3-tier distribution system the tax has already been paid.

My guess is that Hopcat can't legally charge sales tax on the beer. Maybe they don't know that, and will find out when they start paying their sales tax. Maybe they never set up their computers to charge correctly. Or maybe they are pocketing the 5%.


Alcoholic beverages are subject to sales tax and the end user of the product has to pay the sales tax. Most bars wrap the sales tax into the price on their menu. The beer costs $4.74 and with sales tax comes to $5.00 so they put $5.00 on the menu. I believe there has to be a disclaimer on the menu regarding sales tax if done this way.

Publication 236 from the WI-DOR directly deals with sales tax at bars and restaurants.

https://www.revenue.wi.gov/pubs/pb236.pdf

jman111
Forum God/Goddess
Posts: 5450
Joined: Wed Aug 12, 2009 12:43 pm
Location: Dane County
Contact:

Re: Hopcat

Postby jman111 » Fri Aug 07, 2015 8:56 am

HawkHead wrote:I believe there has to be a disclaimer on the menu regarding sales tax if done this way.

I don't know whether or not it is required, but many places have this posted on the menu and/or physically in the establishment(eg, "All drink prices include sales tax.") I don't recall ever having tax added to on-premise alcohol purchases -- it's always been rolled into the quoted prices.

Marvell
Forum God/Goddess
Posts: 7157
Joined: Thu Nov 08, 2001 10:28 pm
Location: At one with time and space

Re: Hopcat

Postby Marvell » Fri Aug 07, 2015 9:32 am

I have never been to an airport bar in the U.S. that did not add sales tax to their drink prices.

For what that's worth.

HawkHead
Forum God/Goddess
Posts: 2159
Joined: Tue Jun 05, 2012 1:29 pm

Re: Hopcat

Postby HawkHead » Fri Aug 07, 2015 9:42 am

jman111 wrote:
HawkHead wrote:I believe there has to be a disclaimer on the menu regarding sales tax if done this way.

I don't know whether or not it is required, but many places have this posted on the menu and/or physically in the establishment(eg, "All drink prices include sales tax.") I don't recall ever having tax added to on-premise alcohol purchases -- it's always been rolled into the quoted prices.


Here it is right from the WI-DOR publication.

13. Price Includes Sales Tax
A seller is allowed to take a deduction on its sales and use tax return for sales tax included in the selling price
of products if customers are notified that the price includes sales tax. Sellers may notify customers by providing
a receipt that separately itemizes the sales tax, a receipt that indicates "price includes sales tax" or
conspicuously posting a sign which states "prices include sales tax."


Return to “Beer, wine & cocktails”

Who is online

Users browsing this forum: No registered users and 1 guest