Lighter Beer

Although it wasn't the sweeping victory they were hoping for, Florida operators nonetheless got some good news late last month when state legislators agreed to simplify the much-disliked alcoholic drink tax. After negotiating with the Florida Department of Business and Professional Regulation, the Florida Restaurant Association was able to secure some tax relief for restaurant owners from the alcoholic beverage surcharge, which has been in effect since 1989.

Beginning July 1, operators will have two payment options to choose from. The first allows them to round off—and round down—tax percentages, which will ease record-keeping headaches. For example, a 12-oz. glass of beer would be taxed a penny instead of 1.34¢. A 4-oz. glass of wine and a 1-oz. shot of liquor would drop to 3¢ instead of 3.34¢. The other option allows them to pre-pay a set tax bill, eliminating record-keeping altogether.

"We really want this thing repealed, but this is a pretty good step," says Dennis Mulholland, owner of Sunsets Steakhouse in Eustis, FL. "I'm not sure how much money it will save us, but it's certainly better than nothing. Little by little we seem to be chipping away at this law."

The tax had been reduced by a third in 1999, and another third in last year's legislative session, which is why many expected it to be completely repealed this year. "We were promised that by the legislature several years ago," says a spokesperson for the Florida Restaurant Association. "So it was disappointing."

She adds that administrative overhead associated with calculating the tax costs the industry $60 million a year. Seeking to avoid the headache, many restaurants retain outside accounting firms to handle the job.

"You pay other people to handle this stuff," says Tom Rice, owner of the Lucky Snapper Grill and Bar in Destin. "And that hurts." The Florida Restaurant Association has vowed to continue the push for the tax's complete repeal.