Reminder: “Essential” Libations Subject to Ohio Sales Tax

On April 7, 2020, Ohio Governor Mike DeWine signed Executive Order 2020-10D which allowed the Ohio Liquor Control Commission to expand the ability for certain liquor permit holders to sell and deliver beer, wine, mixed beverages or spirituous liquor by the drink for off-premises consumption.  The response by both consumers and sellers has been enthusiastic (to say the least) as lines (with socially responsible distancing) for specialty drinks and cocktails popped up outside numerous bars and restaurants in the Cincinnati area this past weekend.  The enthusiasm for this law change has not gone unnoticed, as the Ohio Department of Taxation recently reminded liquor permit holders to collect sales tax on the sale of alcoholic beverages even if those beverages are for off-premises consumption.

Further, unlike many other taxes, there is currently no deferral or extension for Ohio sales and use tax filings and payments.  Mixologists should also keep in mind that Ohio statutes allow the Department of Taxation to assert personal liability for unpaid, sales tax, penalty and interest when the individual has control or supervision of , or is charged with the responsibility of filing tax returns or making payments.  Unsuspecting individuals are often shaken and stirred when they find out that they can be found personally liable for payments the business failed to make.

If you have any questions about Ohio sales tax payments or tax payments in general, please contact any of our Graydon tax team.