- 24 -
because it relies on certain erroneous assumptions. Each
contested item is addressed separately below.
1. Keg Sales
Petitioner asserts that respondent's calculation of gross
receipts from the sale of draft beer is overstated because it
makes no allowance for kegs that were sold for off-premises
consumption.21 Petitioner contends that, during each year in
issue, he sold approximately 85 kegs to go at a price of $5 over
cost.
In support of his position, petitioner points to his
testimony and that of Ms. Stacey. Petitioner testified that he
sold kegs throughout the calendar year, but that the busiest
period for keg sales was from May to October, with sales peaking
during the summer months (June, July, and August). Petitioner
indicated that he sold approximately 3 to 3� kegs per week during
the peak summer months (June, July, and August), and 2 to 3 kegs
per week during the remainder of the busy season (May, September,
and October). Petitioner also testified that he had seven or
21 The parties also disagree as to the proper discretionary use
allowance to be applied to the sale of keg beer. Petitioner's
stipulated computations assert that a discretionary use allowance
of 15 percent should be applied to all over-the-bar keg beer
sales. Respondent's stipulated computations, however, apply a
greater discretionary use allowance of 17 percent for all over-
the-bar sales of keg beer. We conclude that respondent's
stipulated calculations concede that 17 percent is the proper
discretionary use allowance for over-the-bar sales of keg beer.
Neither party asserts that a discretionary use allowance
would be proper for to-go sales of kegs. Accordingly, we do not
apply a discretionary use allowance in deciding petitioner's
gross receipts from to-go sales of kegs.
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