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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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We are putting in a POS system in our business in Ohio. I ...

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We are putting in a POS system in our business in Ohio. I need to know what kind of sales tax on beer and liquor we need to program in so I will know what to pay. I am paying our county rate right now and with what I am reading I am over paying. Is beer and liquor the same rate as dine in food? With what I am reading beer is taxed by the gallon ( in a keg) so many ounces in a bottle, and liquor is also taxed by gallon. How do you figure out these formulas? The more I read the more I get confused. Our accountant is not real familar with taverns so I need some help. Also in process of looking for new accountant.
Submitted: 9 years ago.
Category: Tax
Expert:  Merlo replied 9 years ago.


The taxes that you are referring to that are based on a dollar amount per gallon are the excise taxes imposed by the state. The cost of those taxes are charged to the brewery or to the distillery before the product ever leaves their warehouse and are already included in the cost that you paid for your beer and liquor inventory. If you are making retail sales of liquor and beer in either a tavern or liquor store, you would charge the normal sales tax rate that is applied to any other product that is sold in your state and county.

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