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Alcohol Tax


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#1 Papaw

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Posted 20 May 2024 - 07:02 PM

Im just curious as to why some bars and restaurants charge an alcohol tax on your tab and others dont.
Is it similar that some establishments charge an extra 4 or 5 percent on your tab for using your credit card and others dont? Whats your feelings towards this as a patron?

#2 JBB

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Posted 20 May 2024 - 07:22 PM

Going off of memory, it depends on their permitting.  If an establishment has a mixed beverage permit, they pay alcohol tax.  If they don't, they pay sales tax.

 

Restaurants have always paid merchant fees on credit card sales and they've always passed it on to the consumer.  Instead of hiding it in their overall costs, some establishments are just being up front about it.  Patrons paying it is not a new thing. 



#3 mmmdan

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Posted 20 May 2024 - 07:56 PM

There's this article from 2013 about the change in how alcohol is taxed.

https://www.texastri...x-mixed-drinks/

 

My memory doesn't match this exactly.  I remember reading about ow the tax changes weren't supposed to make it more a drink out more expensive, but to make the pricing more transparent to the consumer.  I recall "them" saying that the price you paid included the tax in the price.  You could go to a bar, order a beer that was $6, and your tab was $6.  I remember this change being pitched as the bar would reduce the price so that when you got your bill, it would now be $5.54 for the beer + $0.46 tax.  Total = $6.

 

Not a single place did this, and the tab became $6 + tax.

 

I feel like I always see a tax charge on drinks for quite a while now.






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