(a) As used in this section, unless the context otherwise requires:

(1) “Gross receipts” means and includes the total receipts from the sale of any item included in subdivision (a)(2), without any deductions for any cost of sales, expense, or any other charge whatsoever. “Gross receipts” also includes all receipts of a person liable for tax imposed by this section, except where a person can and does show to the satisfaction of the commissioner what receipts, other than from sales of alcoholic beverages, mixed drinks and/or setups are included in the total gross receipts, and that they are accounted for and maintained separately on the books and records of such person;

(2) “Mixed drinks and/or setups for mixed drinks” means and includes any sales of beverages containing any alcoholic content, other than beer, and includes sales of water, soft drinks, ice or any item capable of being used to prepare a mixed drink at a place of business of a person liable for the tax imposed by this section; and

(3) “Person selling mixed drinks and/or setups for mixed drinks” means and includes any person deriving receipts from the sale of mixed drinks and/or setups for mixed drinks or alcoholic beverages whether or not consumed on the premises, and includes any country club, night club or private club in the nature of any social, dinner, athletic, or sporting club or organization, and any fraternal society, order, or association making sales and charges for any of these items:

(A) Sales of mixed drinks taxed under chapter 211 of the Acts of 1967 and sales of alcoholic beverages made by persons licensed under §§ 57-3-203 and 57-3-205 shall not be taxed under this section; and

(B) The term does not include sales of setups by cafes, cafeterias, and restaurants where such sales are merely incidental to the principal business and where no bar, lounge, or separate facility is maintained for the purpose of serving or selling mixed drinks and/or setups for mixed drinks.

(b) Each person selling mixed drinks and/or setups for mixed drinks, as defined in subdivision (a)(3), which sale of setups for mixed drinks is declared to be lawful in localities where the sale of packaged alcoholic beverages is lawful, shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to fifteen percent (15%) of the gross receipts, as defined in subdivision (a)(1), in this state. This section also includes the sale of setups for mixed drinks for consumption by persons supplying alcoholic beverages from their own bottle or other container on the premises of persons holding licenses under title 57, chapter 4 to dispense alcoholic beverages for consumption on the premises.

(c) The tax imposed shall be administered and collected on a monthly basis and shall be paid on or before the twentieth day of the month following each month in which the taxpayer's gross receipts are derived. The tax levied by this section shall be deemed to be for the privilege of making sales for the month or part of the month in which such privilege was exercised. Every person exercising this privilege shall monthly, on or before the twentieth day of the following month, make and deliver to the commissioner, upon such forms as the commissioner may prescribe, a statement verified by such person, or agent making such report and statement, which statement shall contain the following information:

(1) The total gross receipts of the taxpayer from sales for the preceding month; and

(2) Such further information as the commissioner may require.

(d) In no case shall any collector or the collector's deputy fail or refuse to collect the tax imposed under this section because of the collector's doubt with reference to the legality of the business engaged in, but the case of the legality of such business shall be determined by the proper judicial authorities.

(e) Any person required under this section to pay any tax or required by law or regulations made under authority thereof to make a return, keep any records or supply any information for the purpose of the computation, assessment or collection of any tax imposed by this section, who willfully fails to pay such tax, make such return, keep such records or supply such information at the time or times required by law or regulations, or who willfully attempts in any manner to evade or defeat any tax imposed by this section or the payment of the tax, in addition to the other penalties provided by law, commits a Class A misdemeanor.