Current through Vol. 41, No. 13, March 15, 2024
(a) On and after
June 29, 1987, the Gross Receipts Tax shall apply to any charges for admission
to a Mixed Beverage establishment which entitle a person to complimentary or
discounted Mixed Beverages. Such admission charges shall be subject to the
Gross Receipts Tax whether:
(1) Expressly
stated or advertised by the Mixed Beverage Permit holder that such charges are
an entitlement to complimentary or discounted drinks;
(2) Lower prices than can reasonably be
expected without an admission charge are established for a limited or
indefinite period, and the permit holder is enabled to maintain lower prices
due to an admission charge;
(3) A
permit holder maintains that lower prices, made possible by an admission
charge, are actually normal prices;
(4) An admission charge enables the permit
holder to set lower prices at any date before or after the admission charge was
established; or
(5) A permit holder
represents that an admission charge is for some other purpose than to offset
mixed beverage prices if the admission charge in fact enables him to maintain
lower prices or allow complimentary drinks to the individual paying such
admission charge or toanother individual or class of individuals.
(6) It shall be deemed by the Tax Commission
that for the purposes of this rule that a gross profit ratio of less than 350%
(3 1/2 times cost) shall be considered a lower price than can reasonably be
expected without an admission charge. Exceptions to this requirement are
"Specials" which are reduced in price for a minimum of seven calendar days as
provided for by statute.
(b) Admission charges which are responsible
for complimentary and discounted mixed beverages, as well as some other purpose
not commonly considered incidental to the operation of a Mixed Beverage
establishment, shall be subject to the Gross Receipts Tax upon that portion
covering mixed beverages.
(c)
Admission charges to fund-raising events conducted by organizations exempt from
federal income tax pursuant to
26 U.S.C.
§501 (c)(3) which are responsible for
complimentary or discounted mixed beverages as well as food, donation, or
entertainment, shall be subject to the Gross Receipts Tax only upon that
portion attributable to mixed beverages.
(1)
If the amount charged for mixed beverage is not itemized to the consumer, it
shall be assumed that the amount received by the organization for mixed
beverages is Three Hundred Fifty percent 350% (or 31/2 times) the wholesale
price of the mixed beverages dispensed at the event, as evidenced by the
wholesaler's invoices.
(2) If the
amount charged for mixed beverages is itemized to the consumer on the ticket,
order form, or other information provided the consumer, Gross Receipts Tax is
due upon the stated amount charged the consumers for mixed beverages.
Amended at 15 Ok Reg
2800, eff 6-25-98; Amended at 19 Ok Reg 1507, eff
5-25-02
