LBW Tax Exempt issue for Oklahoma

[TerryBuster]

Based on Oklahoma law, we cannot tax exempt LBW taxes.  Toast does not have a way to do that.  How are other restaurants handling this situation?  I still haven't managed to come up with a viable workaround.

[Kirsten_H · Accepted solution]

Assuming LBW is liquor, beer, wine...

When we have customers who want to use tax exempt for their meals but not their LBW, we split the check and apply the tax exempt to the food bill and not the LBW.  That way they have separate receipts for expense purposes as well, and usually pay for the LBW with a personal card.

[TerryBuster]

That is what we are currently recommending.  This does, however, incur an additional CC fee.  I've got a feature request in now, hoping to get past that.  This was easy in my old POS, so it caught me unawares that it wasn't a feature already.

[ToastQuestions]

Question on the splitting the check into food vs. alcohol solution, if we have a separate check with alcohol and don't make it tax exempt, the customer is still paying Oklahoma Sales Tax, which is what the tax exempt card should exempt them from. That is a valid solution to keep Oklahoma restaurants compliant with beverage tax but the customer is still paying sales tax on those beverages. This really is ripe for errors and fraud potential.

[TerryBuster]

Indeed.  And, I can't imagine we are the only state that has rules like this.  That's why I was hoping for a better solution.  Sounds like it is the only one that will work, currently.