1. Starting May 1st, wholesalers must begin collecting the gallonage tax on sales of certain alcoholic beverages to retailers.
The retailers in question include bars, restaurants, and liquor stores. This tax is levied on all beverages of high and low alcoholic content handled in Orleans Parish in the State of Louisiana. The chart shown below provides more information about tax rates on certain beverages.
2. A restaurant, bar, or liquor store will not be required to submit a return
Since the city is holding the wholesaler responsible for assessing and collecting the taxes from retail dealers, restaurants will not be responsible for submitting a return. However, wholesalers, manufacturers, distributors, and dealers that deliver high alcoholic content beverages are required to file High Alcoholic Content Wholesale Dealer Excise or License Tax Returns with the city of New Orleans.
3. Expect vendors to adjust their pricing to cover this new excise gallonage tax
Do not be surprised when your alcohol distributor has to raise its prices to cover this newly implemented tax. Speak with your alcohol distributor today to make sure that its new prices are affordable for your business.
4. The efficiency of your business is more important than ever
With this tax impacting your revenue from the sale of alcoholic beverages, and ultimately your bottom line, it is essential that you make sure your business is running as efficiently as possible, and that starts with your payment processing solutions. At Precision Payment Systems we can not only make sure you have the payment processing solution that will save you money, but also that will help you run a more efficient business.
Call us today at 504-434-0998 or visit our website at www.precisionpaymentsystems.com to schedule a complimentary consultation for your business.