Good Happy Hours...?

[bestdeception]

Reactionary is exactly right. This isn't a new law, and has been around for a while. It's done so that the consumer doesn't think the city of HSV is gouging them, but in fact the city of HSV is gouging the businesses. Businesses are not allowed to pass on the tax to the consumer, but have to pay it out of their pockets, so Wintzell's is incorrect by making you pay the tax. What it results in is businesses in HSV having to raise their liquor drink prices to compensate for having to pay an additional 12% tax to the city of HSV for liquor drinks.

If a business in Madison charges $10 for a drink, the total for the customer is $10.85 (including the 8.5% sales tax), and the business gets to keep the $10. If a business in HSV charges $10 for a drink, the total for the customer is $10.80 (including the 8% sales tax), and the business only gets to keep $8.80 of the sale. Of the $10.80, $.80 goes to state, local, and county sales tax, $1.20 goes to the city of HSV for the liquor tax, and the business gets to keep the remaining $8.80. So the net result is businesses in HSV have to raise their drink prices to offset the loss of $$. More or less it's double taxation. The thing is, the city of HSV doesn't want the public to know about the tax, but instead make the businesses pay the tax. Keep in mind this is only for liquor drinks, which are supplied by the Alabama ABC, which is taxed also.

[Reactionary]

Customers still pay the tax, regardless of how the business presents the bill. I don't drink much liquor and haven't paid that much attention to the bill when I do, but I'll be on the lookout for examples.

IIRC the tax was passed in the mid 1980s. When the tax was first passed, many businesses made a point of showing the tax separately so that consumers wouldn't fuss at them for overcharging.

[dijkstra]

Sure the customers still pay the tax but the point is Wintzell's adds it on to the sales tax on drinks they are already charging the same price or more than every other restaurant/bar in town. They are using it to boost their profit on drinks by 12%. They are actually breaking the law considering any sales tax collected from a consumer must be paid in as sales tax and since this liquor tax is a privilege license tax not a sales tax, they are still required to pay it in as well.

[Reactionary]

My guess is that Wintzell's probably pays their sales and license taxes.

Your argument is the same one that bestdeception noted earlier - the city gets paid and the businesses get blamed.

[E Limestone Dude]

Here is the important question RE: Wintzell's: Were the raw oysters any good?

[dijkstra]

Originally Posted by E Limestone Dude

Here is the important question RE: Wintzell's: Were the raw oysters any good?

I don't eat raw oysters but the entrees we had weren't good.