Sales tax question (Birmingham, Montgomery, Tuscaloosa: restaurants, price, law)

[abitaman]

I understood that the total sales tax in Birmingham is 10%. However, I have eaten in a few Birmingham restaurants lately and have found that the total tax rate on my bill (food and liquor) is definitely more than 10%. I was unaware of a separate tax on liquor, and the servers I questioned seemed only vaguely aware of some sort of liquor tax, but knew no particulars. Can someone please enlighten me on this matter.

[RebelPhotog]

We call those 'sin taxes'. Thanks God all my sins haven't been taxed......yet!

[TDGS7149]

There are three taxes at work, state tax is 4%, jeff cnty is 3% and whatever city you are in the local tax could be 2 to 3%, if the place is outside of polic jurisidction there's another rate. 10% is the max.

[TDGS7149]

Originally Posted by abitaman

I understood that the total sales tax in Birmingham is 10%. However, I have eaten in a few Birmingham restaurants lately and have found that the total tax rate on my bill (food and liquor) is definitely more than 10%. I was unaware of a separate tax on liquor, and the servers I questioned seemed only vaguely aware of some sort of liquor tax, but knew no particulars. Can someone please enlighten me on this matter.

YOU CAN THANK ME FOR THAT. I USED TO BE AN AUDITOR AT THE ALABAMA DEPT. OF REVENUE IN B'HAM. I FOUND A LOOP HOLE IN THE SALES TAX LAW THAT WASN'T ENFORCED - NAMELY THAT RETAIL ESTABLISHMENTS HAVE TO COLLECT SALES TAX. NO CUSTOMERS IS GOING TO PULL 10 CENTS FROM THEIR POCKETS TO PAY TAX ON EVERY DOLLAR SPENT ON DRINKS, SO BAR OWNERS BACK SALES TAX OUT OF THE SALES MEASURE BEFORE THEY REPORT THE TAXABLE SALES.

I USED THIS ERROR TO PLACE A TAX ON THE SALES TAX THE REPORTED AND REMITTED. IT CAUSED A BIG DEAL IN MONTGOMERY AND TUSCALOOSA THAT LED TO THE POSTING OF SIGNS STATING THE SALES TAX RATE AND THAT SALES TAX IS INCLUDED IN THE PRICE.

BEFORE THEY AMENDED THE TAX CODE FOR THIS, I HAD AUDITED AND COLLECTED OVER $200k FOR THE DEPARTMENT.

[FlyingV]

A polite request. Please STOP POSTING IN ALL CAPS. We hear you