Curbside sales of packaged beer and wine by Oklahoma restaurants permitted, subjected to state and local taxes

published in Council on State Taxation | March 24, 2020

The Oklahoma ABLE Commission issued an advisory letter last week (updated 3/23/20) related to the closure order issued by Governor Kevin Stitt and local officials for on-premises retail establishments, such as bars and restaurants, due to the COVID-19 pandemic. In the advisory letter, Director Keith Burt advised:

Mixed beverage, caterer/mixed beverage, and on-premise beer and wine licensee whose primary purpose is that of a restaurant, qualifying as a “Type-2” establishment wherein persons under 21 are allowed to enter, may sell closed original packages of beer and wine only when ancillary to and in conjunction with food sales, and when such sales are completed in a curbside pick-up or drive through manner only. Deliveries of alcoholic beverages to consumers shall remain prohibited. Authorized hours for sales pursuant to this section shall be made during regularly authorized hours pursuant to the license hold unless restricted by federal, state, or municipal order.

The advisory letter further states that the authority granted in the letter expires on April 17, 2020 unless amended or revoked on a prior date.

In response, the Oklahoma Tax Commission clarified the taxes applicable to such sales. In its own advisory letter, Executive Director Jay Doyle, advised that the curbside sales of packaged beer and wine for off-premises consumption are not subject to the 13.5% mixed beverage gross receipts tax. Sellers should be advised that such all such sales are still subject to state and local sales taxes.