Sales and Use Tax on Bars and Lounges
What dealers need to know about taxation of alcoholic beverages.
Sales Tax - What is Taxable?
Alcoholic beverages, including beer, ale and wine, are taxable at the rate of 6% (general sales tax rate) plus any applicable discretionary sales surtax imposed where the beverage is sold. The discretionary sales surtax rates vary depending on the county. The dealer must calculate sales tax and discretionary sales surtax on the total sales price of each transaction. The total sales price includes any other state and federal taxes.
The dealer cannot advertise or otherwise inform the public that:
- The dealer will absorb any part of the sales tax.
- The purchaser will be relieved from the payment of sales tax.
A dealer may set prices on the sale of alcoholic beverages in order to avoid handling pennies, but each of the dealer's price lists must show the price of the beverage and the amount of sales tax due as separate items.
At times, it may be impractical for a dealer to separately record the sales price of the beverage, the sales tax, and the surtax on each sale. In such cases, the dealer must calculate the tax according to one of the following two methods.
Calculating Sales Tax
Method 1 - Dealers Who Do Not Give Notice To The Public.
Use Method 1 rates when the public has not been notified, through either posted price lists or signs displayed in the business, that the sales tax is included in the total charge. When using Method 1, the dealer must multiply the total gross receipts derived from the sales by the appropriate rate listed in the following chart to compute the amount of sales tax due (including any applicable discretionary sales surtax).
| Method 1 - Tax Rate Chart |
State & County
Tax Rate |
Package Store
Rate |
Other Dealers'
Rate |
| 6% |
.0635 |
.0659 |
| 6.25% |
.0656 |
.0678 |
| 6.5% |
.0677 |
.0697 |
| 7% |
.0730 |
.0751 |
| 7.5% |
.0776 |
.0795 |
If the state and discretionary sales surtax rate for your business location is not shown, please contact Taxpayer Services (see "Whom to Call") for the appropriate rate.
Method 2 - Dealers Who Give Notice To The Public.
Use Method 2 rates when the public has been notified, through either posted price lists or signs displayed in the business, that the sales tax is included in the total charge. When using Method 2, the dealer must divide the total gross receipts derived from the sale of individual drinks (includes beer, ale, and wine) and package goods by the appropriate rate listed in the following chart to compute the amount of taxable sales, then subtract taxable sales from gross receipts to compute the amount of sales tax due (including any applicable discretionary sales surtax).
|
| Method 2 - Tax Rate Chart |
State & County
Tax Rate |
Package Store
Rate |
Other Dealers'
Rate |
| 6% |
1.0635 |
1.0659 |
| 6.25% |
1.0656 |
1.0678 |
| 6.5% |
1.0677 |
1.0697 |
| 7% |
1.0730 |
1.0751 |
| 7.5% |
1.0776 |
1.0795 |
If the state and discretionary sales surtax rate for your business location is not shown, please contact Taxpayer Services (see "Whom to Call") for the appropriate rate.
See examples using Method 1 and Method 2.
Annual Resale Certificate
As a registered dealer with the Department, you will be provided with an Annual Resale Certificate (Form DR-13). The Annual Resale Certificate may be used to purchase goods tax-exempt that will be resold in your regular business operations. If the goods purchased for resale are later used (not resold), the dealer must report and pay use tax on those items, plus any applicable penalties and interest. There are additional liabilities for intentional misuse of a resale certificate.
Use Tax - What is Taxable?
A use tax equivalent to the state tax, plus any applicable discretionary sales surtax, is due on the cost of drinks given to patrons free of charge.
Wine, liquor, and distilled spirits that are provided by distributors or vendors for "wine tasting" and "spirituous beverage tasting" are exempt from tax. However, any charge made to the general public for "wine tasting" and "spirituous beverage tasting" is subject to sales tax. Beverages other than wine, liquor, and distilled spirits that are subject to sales tax and are provided by distributors, vendors, or any other person for the purpose of tasting or promoting the product are taxable.
Alcoholic beverages that are used by the dealer for promotional reasons (such as free drinks during happy hour) are subject to use tax.
Purchases of items such as cleaning supplies, office equipment, credit card machines, office supplies, etc. that will be used in the business are subject to tax. If the dealer does not pay sales tax when the items are purchased, or pays tax to another state at a rate lower than 6 percent, the dealer must pay use tax to Florida.
Reference Material
Tax Laws
Call Taxpayer Services to request a copy of Rule 12A-1.057, Florida Administrative Code, Alcoholic and Malt Beverages. Tax laws are also available in the Florida Tax Law Library.
Brochures
Ask for the following, available from your local DOR service center, the DOR Distribution Center, or Taxpayer Services:
- Discretionary Sales Surtax
- Amusement Machines
- Vending Machines
For Information and Forms
To speak with a Department of Revenue representative, call Taxpayer Services, Monday through Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671, or call the service center nearest you.
Persons with hearing or speech impairments may call the TDD at 800-367-8331 or 850-922-1115.
To receive forms by mail:
- Order multiple copies of forms from our Internet site, or
- Mail form requests to:
Distribution Center
Florida Department of Revenue
168A Blountstown Hwy
Tallahassee FL 32304-3761
Department of Revenue service centers host educational seminars about Florida’s taxes. Visit our Free Tax Seminars internet page to get a schedule of upcoming seminars and to register.
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