Current through Vol. 41, No. 13, March 15, 2024
(a)
Liability
in general. Every mixed beverage tax permit holder or any other person
transacting business subject to the gross receipts tax shall be liable for the
tax upon the gross receipts from such beverages (on the basis of the number of
drinks available for sale, preparation, or service from the total alcoholic
beverages received). Each permit holder or other person shall be liable for the
gross receipts tax upon any and all disposition by his or her agents or
employees or any other persons on the premises of the mixed beverage tax permit
holders or other person, except upon seizure or other disposition of the
alcoholic beverage by employees of the ABLE Commission, Tax Commission, or
other law enforcement agencies in the execution of their official duties.
[See: 37A O.S. § 5-105]
(b)
Audit procedures.
(1) Upon audit of the books and records of a
mixed beverage establishment for gross receipts tax, it shall be assumed that
spirits have been dispensed at the average rate of one and one-half fluid
ounce, except for drinks with recipes calling for more than one type of spirit
or for double portions of spirits, or upon reasonable evidence of a different
rate of use.
(2) Wines will be
presumed to have been dispensed at the average rate of six ounces (6 oz.) per
serving. The Tax Commission may use an average rate greater or less than those
set out in this rule upon reasonable evidence of a different rate of
use.
(3) In addition, a deduction
may be allowed from the gross receipts tax liability determined by an audit or
other investigation of the books and records of a mixed beverage tax permit
holder, for alcoholic beverages that are:
(A)
consumed in food as verified by the audit;
(B) destroyed due to breakage for which the
permit holder has retained the container; or that portion thereof that has the
unbroken seal; or for partial bottles destroyed by breakage for which the
permit holder has completed a breakage affidavit listing the date of the
occurrence, the brand and type of liquor, the size bottle, the approximate
amount left in the bottle by 1/10ths, and the cause of the breakage. The
affidavit shall be signed by the permit holder and two witnesses;
(C) stolen or destroyed by a disaster such as
a fire or flood, provided that reasonable evidence is provided to support a
claim. Reasonable evidence might include a copy of a police or sheriff's crime
report; or an insurance claim detailing the inventory destroyed by brand, size,
and type of liquor;
(D) not
consumed, and exist or existed, at the close of a taxable period in question,
provided that the amount and nature of the unconsumed inventory has been
verified by agents of the Tax Commission, ABLE Commission, or verified by
invoice to a mixed beverage permittee or wholesaler approved to purchase the
inventory by the ABLE Commission. Partially filled bottles which are not
included in a transferred inventory should be verified by a Tax Commission or
ABLE Commission agent or agents.
(4) If an establishment was selling alcoholic
beverages prior to the starting date of the audit period being used by the
Commission in its audit, the establishment shall be required to furnish the
Commission with a beginning inventory of all liquor, wine, and beer on hand if
an ending inventory is offered for audit purposes. When the permittee is unable
or unwilling to furnish such an inventory, then no beginning or ending
inventories shall be considered for the audit period used and the audit will be
conducted solely on the taxpayer's purchases made during the audit
period.
Amended at 10 Ok Reg
3831, eff 7-12-93; Amended at 15 Ok Reg 2800, eff 6-25-98; Amended at 19 Ok Reg
1507, eff 5-25-02
