Q I was paying the tab at a Minneapolis bar when I noticed that it seemed we were overtaxed. We had about $5 in tax on $12.50 for food and $38 for alcohol. I thought that the tax was included in the price of the beer or drink.
I can walk up to the bar and (not counting tip) plop down six bucks without tax, but the tab showed tax on the drinks. The waitress agreed that it did not look right, even rang up our alcohol and food separately, but the total tax was still the same. Is the state getting double tax, is the bar overcharging, or am I confused?
A The tax amount was correct. Lisa Waldrup, with the Minnesota Department of Revenue, explained it this way:
In downtown Minneapolis, the following taxes are included when purchasing food and or drinks.
• Minnesota state sales tax: 6.5 percent
• Minnesota liquor gross receipts: 2.5 percent
• Minneapolis local general sales tax: 0.5 percent
• Minneapolis downtown food and alcohol tax: 3.0 percent