Mixed Beverage Gross Receipts Tax

Mixed Beverage Gross Receipts Tax Rate Lowered; New Mixed Beverage Sales Tax Imposed

House Bill 3572, effective Jan. 1, 2014, lowers the mixed beverage gross receipts tax rate from 14 percent to 6.7 percent. The bill also imposes an 8.25 percent mixed beverage sales tax.

Mixed beverage gross receipts tax is imposed on the mixed beverage permittee and will be administered the same as before but at a lower rate. In addition, a mixed beverage permittee will collect an 8.25 percent tax on each mixed beverage sold, prepared or served. The new sales tax is also due on ice and each nonalcoholic beverage sold, prepared or served to be mixed with an alcoholic beverage and consumed on the permitted premises.

Mixed beverage sales tax will be administered, collected and enforced the same as sales and use tax is administered, collected and enforced under Tax Code Chapter 151, except there are no prepayments, timely filing discounts or local mixed beverage sales taxes. Mixed beverage tax allocation for cities and counties will be based on the combined revenue of the mixed beverage taxes.

Due to the change in the structure of mixed beverage taxes, a permittee’s bond security requirements may be adjusted. Our office will notify the permittee if a change is needed. Tax Code Sections 151 and 183

*Originally published in Tax Policy News; a monthly newsletter about Texas tax policy at http://www.window.state.tx.us/taxinfo/taxpnw/tpn2013/tpn1309.html#issue6