Mixed Drink Tax Collections and Reporting
Mixed Drink Tax Collections and Reporting Requirements
Each business authorized to sell mixed drinks (alcoholic beverages) must collect a 3% sales tax on behalf of the City of Newnan, per City Ordinance. The monthly sales taxes collected are to be submitted to the City along with the Mixed Drink Tax Report on a monthly basis. Failure to remit the taxes and/or required report will result in revocation of the alcohol license. Mixed drink taxes are not charged to the customer on beer and wine, only mixed drinks.
The mixed drink tax report is now available on the City's Forms portal in the Alcohol folder. The Mixed Drink Tax Report must be filed with the City of Newnan by the 10th day of each month. If the report is filed early, you may deduct 3% of the amount as a collection credit. If the payment is received late, however, a 15% penalty must be added to the amount due. Please note that the payment must be received by the 10th day of the month, not postmarked by that date, in order to deduct the 3% credit. If you are mailing late, the 15% penalty must be added to the amount remitted. Otherwise, you will be sent notice of a balance due on your account.
Line 5 on the form is to be used for adding any prior month(s) balance due. If your payment for a particular month is received late (after the 10th), and you have not included the 15% penalty, we will send you notice of a balance due on your account. This balance due will be added to Line 5 on the next month's report when submitted. The address for submission of the report and taxes collected is located at the top of the form. Questions should be directed to the Licensing Specialist.