§ 5.6. Ratio Accounting Procedures  


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  • Article 2B, Section 6-201(a), (q)
    (a) Licensees holding a Class B, BWL license (on-sale) must ensure that the gross receipts from food sales are at least equal to the gross receipts from the sale of alcoholic beverages.
    (b) Receipts from Sale of Food – In calculating the gross receipts from the sale of food, any food stuff, soft drink or other non-alcoholic beverage contained in any mixed drink must not be included in the calculation. The entire price of a mixed drink must be contained in the licensee's calculation of the gross receipts from the sale of alcohol.
    (c) A cover charge cannot be used in calculating food or alcohol ratios. For purposes of this section, a cover charge means any charge that a licensee requires a patron to pay before the patron will be admitted to the licensed premises which does not include an identified alcoholic beverage or item of food to be served to the patron.
    (d) During the first year after the issuance or transfer of a Class B-BWL license, the licensee(s) must submit ratio reports to the Board every month. The reports must be made under oath, subject to penalties of perjury, and must be witnessed by a Notary Public.
    (e) The Board may conduct, as needed, an audit of the licensee's records to determine the ratio of gross receipts from the sale of food to gross receipts from the sale of alcoholic beverages, pursuant to Article 2B, Section 6-201 of the Annotated Code of Maryland. The Board may require any licensee to provide supporting data which the Board, in its discretion, deems necessary to establish that the ratio requirements have been met.
    (f) In the event that a licensee fails to maintain the sales ratio requirement for a period of three consecutive months during the initial license year, or after the initial license year for the license or calendar year, the Board may, in its discretion, revoke the license.