Okla. Admin. Code § 710:20-5-4

Current through Vol. 42, No. 7, December 16, 2024

Section 710:20-5-4 - Calculation of gross receipts tax for mixed beverage transactions

(a)Advertised price; admission charge. The advertised price of a mixed beverage may be the sum of the total retail sale price and the gross receipts tax levied thereon. Admission charges to a mixed beverage establishment which entitle a person to complimentary mixed beverages or discounted prices for mixed beverages are subject to the gross receipts tax.

(b)Records. Mixed beverage permittees shall maintain records of the total retail prices of all drinks and the gross receipts tax shall be calculated on the individual total retail price of each drink and may be added thereto to form the advertised price.

(c)Calculation of tax.

(1) A mixed beverage tax permit holder shall report the following:

(A) The total amount received for mixed beverages sold, prepared or served at the total retail price;

(B) The total retail value, computed at the total retail price, of all mixed beverages sold, prepared or served either upon a discounted or complimentary basis;

(C) The total amount received for ice or nonalcoholic beverages sold, prepared, or served for the purpose of being mixed with alcoholic beverages and consumed on the premises where the sale, preparation, or service of mixed beverages occurs; and

(D) The total gross amount received as admission charges which entitle a person to complimentary mixed beverages or discounted prices for mixed beverages.

(2) The sum of the four amounts in (1) of this subsection, multiplied by the 13.5% tax rate, shall constitute the amount of the gross receipts tax.

(d)Example. Assuming the total retail sales price for a mixed drink is $3.00, each drink sold, and each drink served as a "complimentary drink" incurs a Forty-one Cent gross receipts tax. Sales tax shall be calculated on the total retail price of $3.00. [See:37A O.S. § 5-105]

Okla. Admin. Code § 710:20-5-4

Amended at 15 Ok Reg 2800, eff 6-25-98; Amended at 19 Ok Reg 1507, eff 5-25-02; Amended at 25 Ok Reg 2033, eff 7-1-08

Amended by Oklahoma Register, Volume 31, Issue 24, September 2, 2014, eff. 9/12/2014

Amended by Oklahoma Register, Volume 35, Issue 24, September 4, 2018, eff. 10/1/2018