Are Casinos Exempt From Liquor Taxes?

[TMS]

Hi. Does anyone know if the local casinos are subject to the state mixed beverage tax, like all other businesses offering mixed beverages in the state?  I'm just curious about it after a friend of mine told me the Hard Rock was giving away free cocktails; if so, then do they just pay the 13.5% tax on the value of what they're giving away? (And isn't there some law against giving away drinks to begin with?)

Thanks in advance!

[shadows]

Since the land was given by treaty to the Indians (who never broke up the land is small lots) in exchange for their plantations in the east, only to be reneged by the government on demand of the citizens to open it for settlement, whereas most of the casino’s after the Indian was educated to our ways found that the promised land could be placed in trust for the tribe. This opened the way for the casino’s to be built on the Indian land which opened up gaming in the areas.  Under the presumptions that land placed in tribal trust is exempted from most taxes, the trust would not be subject to any tax on giveaway mixed drinks.   This is only based on pending procedures now being pursued as a tribe is trying to reclaim their land and be governed as a trust and the City of Tulsa is screaming that they will loose projected taxes if it takes place.  It is liken to “the spoils go the conquer“.   Visit the council tree used by the tribe before the city took it over.

[Red Arrow]

A drink in a casino is not necessarily a drink lost to another establishment.  Get over it.

[TMS]

A drink in a casino is not necessarily a drink lost to another establishment.  Get over it.

So if the casinos are exempt from the laws that apply to the rest of us in Oklahoma, then a drink in a casino is around 22% of the drink's retail value less in taxes taken in by our local, county, and state governments.  Our sales tax base is surely being eroded by the casinos usurping massive funds from our citizens.  And we wonder why our tax revenues are diminishing, to the point that our basic services are being threatened.

I'd join a repeal movement if there ever was one (I've heard rumblings of one). 

Thanks for your input!

[Red Arrow]

So if the casinos are exempt from the laws that apply to the rest of us in Oklahoma, then a drink in a casino is around 22% of the drink's retail value less in taxes taken in by our local, county, and state governments.  Our sales tax base is surely being eroded by the casinos usurping massive funds from our citizens.  And we wonder why our tax revenues are diminishing, to the point that our basic services are being threatened.

I'd join a repeal movement if there ever was one (I've heard rumblings of one). 

Thanks for your input!

So you are saying that the casinos are not generating any new business, only stealing business from establishments that pay sales tax?

Do the people that work in the casinos not spend any of their earnings at places that charge sales tax?  (They also pay income tax but that is admittedly at the state level.)

Repeal movement?  For what, liquor by the drink?  I wonder how much sales tax was collected on liquor by the wink.

[TMS]

So you are saying that the casinos are not generating any new business, only stealing business from establishments that pay sales tax?

Do the people that work in the casinos not spend any of their earnings at places that charge sales tax?  (They also pay income tax but that is admittedly at the state level.)

Repeal movement?  For what, liquor by the drink?  I wonder how much sales tax was collected on liquor by the wink.

"New" business, sure, but is it good business? Surely another vice introduced to this state is not necessarily "good" business, certainly not good for a lot of people addicted to gambling and their families.

As far as sales tax collection, money is now being sucked out of our normal economy that might well have gone toward local purchases and "economic stimulus."  Funny, the so-called "education and employment bill" that some of us voted in several years ago that made full-blown gambling legal for some doesn't seem to be having much benefit for our education systems now, at a time when they're looking to having to cut teachers next year.

No, I meant a repeal movement of the "education and employment" bill as it was touted when our state voted on it.  Sorry for the confusion.

[Red Arrow]

"New" business, sure, but is it good business? Surely another vice introduced to this state is not necessarily "good" business, certainly not good for a lot of people addicted to gambling and their families.

The inability of a small percentage of the population to control their response to an activity should not preclude the remainder of the population from that activity.  I expected you were approaching the casinos from a "this is a bad activity" attitude. Most of Oklahoma would disagree with a holier than thou attitude, although some only when 50 or more miles from home.


As far as sales tax collection, money is now being sucked out of our normal economy that might well have gone toward local purchases and "economic stimulus."  Funny, the so-called "education and employment bill" that some of us voted in several years ago that made full-blown gambling legal for some doesn't seem to be having much benefit for our education systems now, at a time when they're looking to having to cut teachers next year.

I know several people that work at the casinos.  They pay income tax on that income.  They also use that income to buy things that do have sales tax charged that they might otherwise not be able to purchase. The Native American tribes/nations also use that income to provide benefits to their members that would otherwise be coming directly out of your pocket in federal and state taxes.  There is also entertainment other than gambling at many of the casinos.  No one is forcing you to attend.

Oklahoma has a tried and true philosophy of saying that "all this new income will go to education (or some other specific worthy cause)" without also noting that existing money already being spent on that worthy cause will be moved to another "worthy expenditure". 

No, I meant a repeal movement of the "education and employment" bill as it was touted when our state voted on it.  Sorry for the confusion.

[TMS]

I'm sorry, I didn't mean to project a "holier than thou" attitude (though I do believe what I said about gambling in this state, but not from a "holy" or religious perspective as much as for the social and economic reasons).  Nor did I mean to get on any kind of a soapbox. I merely wanted to know about the imbalances of the liquor laws and taxes in this state, and that question was answered pretty well by Shadows earlier. (Frankly, his was a much better response than for me to just "get over it.")

So if I ever do want to get on a soapbox about gambling in our state, I guess 'll just start a separate topic and label it as such.

Thank you again for your input.