CHAPTER 201. LIQUOR TAXES - Texas Statutes

ALCOHOLIC BEVERAGE CODE

TITLE 5. TAXATION

CHAPTER 201. LIQUOR TAXES

SUBCHAPTER A. TAX ON LIQUOR OTHER THAN ALE AND MALT LIQUOR

Sec. 201.01. LIQUOR. In this subchapter, "liquor" does not

include ale or malt liquor.

Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.011. TIMELY FILING: DILIGENCE. A person filing a

report or making a tax payment complies with the filing

requirements for timeliness for a report not filed or a payment

not made on time if the person exercised reasonable diligence to

comply with the filing requirements and the failure to file or

the making of a late payment is not the fault of the person.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 95, eff. Sept. 1,

1993.

Sec. 201.02. "FIRST SALE" DEFINED. In this subchapter, "first

sale":

(1) as applied to liquor imported into this state by the holder

of a wholesaler's permit authorizing importation, means the first

actual sale by the permittee to the holder of any other permit

authorizing the retail sale of the beverage or to the holder of a

local distributor's permit; and

(2) as applied to all other liquor, means the first sale,

possession, distribution, or use in this state.

Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.03. TAX ON DISTILLED SPIRITS. (a) A tax is imposed on

the first sale of distilled spirits at the rate of $2.40 per

gallon.

(b) The minimum tax imposed on packages of distilled spirits

containing two ounces or less is five cents per package.

(c) Should packages containing less than one-half pint but more

than two ounces ever be legalized in this state, the minimum tax

imposed on each of these packages is $0.122.

Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,

Sec. 8, eff. Oct. 2, 1984.

Sec. 201.04. TAX ON VINOUS LIQUOR. (a) A tax is imposed on the

first sale of vinous liquor that does not contain over 14 percent

of alcohol by volume at the rate of 20.4 cents per gallon.

(b) A tax is imposed on vinous liquor that contains more than 14

percent of alcohol by volume at the rate of 40.8 cents per

gallon.

(c) A tax is imposed on artificially carbonated and natural

sparkling vinous liquor at the rate of 51.6 cents per gallon.

Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,

Sec. 9, eff. Oct. 2, 1984.

Sec. 201.05. REPORTING SYSTEM. A person who holds a permit

authorizing the importation of liquor into this state shall pay

the liquor tax by the reporting system under bond.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.06. PAYMENT OF TAX; DISCOUNTS. (a) The tax on liquor,

levied and computed under this subchapter, shall be paid by a

remittance payable to the comptroller and forwarded together with

any required sworn statement of taxes due to the commission in

Austin on or before the date it is due.

(b) A discount of two percent of the amount due shall be

withheld by the permittee for keeping records, furnishing bonds,

and properly accounting for the remittance of the tax due. No

discount is permitted if the tax is delinquent at the time of

payment.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.03, eff.

Sept. 1, 1997.

Sec. 201.07. DUE DATE. The tax on liquor is due and payable on

the 15th of the month following the first sale.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.075. SUMMARY SUSPENSION. (a) The commission may

summarily suspend, without a hearing, the permit of a permittee

who fails to file a report or return or to make a tax payment

required by this subchapter. Chapter 2001, Government Code does

not apply to the commission in the enforcement and administration

of this section.

(b) A suspension under this section takes effect on the third

day after the date the notice of suspension is given. The notice

shall be given to the permittee or the permittee's agent or

employee by registered or certified mail if not given in person.

(c) The commission shall terminate a suspension made under this

section when the permittee files all required returns and makes

all required tax payments that are due.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 96, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),

eff. Sept. 1, 1995.

Sec. 201.08. EXEMPTION FROM TAX. (a) No tax may be collected

on liquor:

(1) shipped out of state for consumption outside the state; or

(2) sold aboard a ship for ship's supplies.

(b) The commission shall provide forms for claiming the

exemption prescribed by this section.

(c) A tax credit shall be allowed for payment of any unintended

or excess tax.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.09. REFUND DUE ON DISPOSITION OUTSIDE OF STATE. The

holder of any permit authorizing the transportation of liquor out

of this state may apply to the commission for a refund of the

excise tax on liquor on which the state tax has been paid on

proper proof that the liquor was sold or disposed of outside of

this state.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.10. EXCESS TAX. A permittee is entitled to a refund or

tax credit on future tax payment for any excess tax on liquor

paid through oversight, mistake, error, or miscalculation.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.11. TAX CREDITS AND REFUNDS. The commission shall

provide by rule for the equitable and final disposition of tax

refunds or credits when liquor tax is overpaid or paid by

mistake. It shall prescribe the time and manner for filing claims

for credits and refunds and provide appropriate forms.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.12. APPROPRIATIONS FOR REFUNDS. Necessary funds from

the collection of the tax on imported liquor before the revenue

from that tax has been allocated may be appropriated for the

payment of refunds of tax on imported liquor.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.13. SALE OF UNTAXED LIQUOR PROHIBITED. No person may

sell, offer for sale, or store for the purpose of sale in this

state any liquor on which the state or federal tax, if due, has

not been paid.

Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.14. INVOICES OF TRANSPORTED LIQUOR. A holder of a

permit authorizing the wholesaling of liquor and the transporting

of liquor outside of this state shall furnish to the commission

duplicate copies of all invoices for the sale of liquor

transported outside of this state within 24 hours after the

liquor has been removed from the permittee's place of business.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.15. EVIDENCE IN SUIT. In any suit brought to enforce

the collection of tax owed by the holder of a permit authorizing

the importation of liquor into this state, a certificate by the

commission or administrator showing the delinquency is prima

facie evidence of:

(1) the levy of the tax or the delinquency of the stated amount

of tax and penalty; and

(2) compliance by the commission with the provisions of this

code relating to the computation and levy of the tax.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.16. PENALTY. A person who violates any section of this

subchapter except Section 201.09 or 201.13 of this code commits a

misdemeanor which on conviction is punishable by a fine of not

less than $100 nor more than $1,000 or by imprisonment in the

county jail for not less than 30 days nor more than one year.

Violations of Sections 201.09 and 201.13 are punishable in

accordance with Section 1.05 of this code.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.17. LIQUOR IN METRIC CONTAINERS. For the purpose of

the taxes imposed on liquor by this subchapter and on ale and

malt liquor by Subchapter B of this chapter, if the liquor is in

metric containers the amount of tax due is determined by

converting the metric amount into the equivalent amount in

gallons and applying the appropriate tax rate. The commission

shall prepare tables showing the amount of tax due on various

types of liquor, including ale and malt liquor, in metric

containers.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977.

SUBCHAPTER B. TAX ON ALE AND MALT LIQUOR

Sec. 201.41. FIRST SALE. In this subchapter, "first sale"

means:

(1) the first actual sale of ale or malt liquor by the holder of

a wholesaler's, general class B wholesaler's, or local class B

wholesaler's permit to:

(A) a permittee authorized to sell to ultimate consumers;

(B) a local distributor permittee; or

(C) a private club registration permittee; or

(2) the importation of ale or malt liquor under Section 107.07

of this code.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,

Sec. 10, eff. Oct. 2, 1984.

Sec. 201.42. TAX ON ALE AND MALT LIQUOR. A tax is imposed on

the first sale of ale and malt liquor at the rate of $0.198 per

gallon.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,

Sec. 11, eff. Oct. 2, 1984.

Sec. 201.43. DUTY TO PAY TAX; DUE DATE. (a) The permittee

making the taxable first sale shall pay the tax on ale and malt

liquor imposed under Section 201.42 of this code.

(b) The tax is due and payable on the 15th day of the month

following the month in which the taxable first sale occurs.

Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,

Sec. 12, eff. Oct. 2, 1984.

Sec. 201.44. TAX EXEMPTIONS. No tax may be collected on ale or

malt liquor:

(1) shipped out of the state for consumption outside the state;

or

(2) sold aboard a ship for ship's supplies.

Acts 1977, 65th Leg., p. 391, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.45. PROHIBITION OF SALE OF UNTAXED ALE OR MALT LIQUOR.

No person may sell, offer for sale, or store for the purpose of

sale in this state any ale or malt liquor on which the state or

federal tax, if due, has not been paid.

Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.46. TAX LIABILITY. A person possessing ale or malt

liquor on which the tax is delinquent is liable for the

delinquent tax in addition to the criminal penalties.

Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.47. TAX REFUNDS AND CREDITS. (a) The holder of a

permit authorizing the transportation of ale or malt liquor out

of the state may apply to the commission for a refund of the

excise tax on ale or malt liquor that has been paid on proper

proof that the ale or malt liquor was sold or disposed of outside

the state.

(b) Tax credits shall be allowed for overpayment or mistaken

payment of the tax on ale or malt liquor, and the commission

shall provide by rule for the equitable and final disposition of

the tax credits.

Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.48. PAYMENT. The tax on ale and malt liquor shall be

paid by a remittance payable to the comptroller and forwarded,

together with any required sworn statements of taxes due, to the

commission in Austin on or before the date it is due. A discount

of two percent of the amount due shall be withheld by the

permittee or licensee for keeping records, furnishing bonds, and

properly accounting for the remittance of the tax due. No

discount is permitted if the tax is delinquent at the time of

payment.

Acts 1977, 65th Leg., p. 391, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.04, eff.

Sept. 1, 1997.

Sec. 201.49. MAY REQUIRE INFORMATION. (a) The commission may

require all brewers, nonresident brewers, importers, wholesalers,

and class B wholesalers of ale and malt liquor to provide

information as to purchases, sales, and shipments to enable the

commission to collect the full amount of the tax due. No brewer,

nonresident brewer, importer, wholesaler, or class B wholesaler

may fail or refuse to furnish the required information.

(b) The commission may seize or withhold from sale the brewer's,

nonresident brewer's, importer's, wholesaler's, or class B

wholesaler's ale or malt liquor for failure or refusal to supply

the information required under Subsection (a) of this section or

to permit the commission to make an investigation of pertinent

records, whether the records are inside or outside of this state.

Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.50. INVOICES OF TRANSPORTED LIQUOR. The holder of a

permit authorizing the wholesaling of liquor and the

transportation of it out of the state shall furnish to the

commission duplicate copies of all invoices for the sale of

liquor transported out of the state within 24 hours after the

liquor has been removed from the permittee's place of business.

Violation of this section is punishable by the penalty prescribed

in Section 201.16 of this code.

Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.51. EVIDENCE IN SUIT. In any suit brought to enforce

the collection of tax due on ale or malt liquor brewed in or

imported into this state, a certificate by the commission or

administrator showing the delinquency is prima facie evidence of:

(1) the levy of the tax or the delinquency of the stated amount

of tax and penalty; and

(2) compliance by the commission with the provisions of this

code relating to the computation and levy of the tax.

Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.52. ALE AND MALT LIQUOR IN METRIC CONTAINERS. Section

201.17 of this code applies to the taxation of ale and malt

liquor in metric containers.

Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.53. SUMMARY SUSPENSION. (a) The commission may

summarily suspend, without a hearing, the permit of a permittee

who fails to file a report or return or to make a tax payment

required by this subchapter. Chapter 2001, Government Code does

not apply to the commission in the enforcement and administration

of this section.

(b) A suspension under this section takes effect on the third

day after the date the notice of suspension is given. The notice

shall be given to the permittee or the permittee's agent or

employee by registered or certified mail if not given in person.

(c) The commission shall terminate a suspension made under this

section when the permittee files all required returns and makes

all required tax payments that are due.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 97, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),

eff. Sept. 1, 1995.

SUBCHAPTER C. STAMPS

Sec. 201.71. STAMPS. Unless the liquor is exempt from tax or

payment has been or is to be made by a permittee in accordance

with the provisions of Subchapter A or B of this chapter, the tax

levied under Subchapter A or B shall be paid by affixing a stamp

or stamps on each bottle or container of liquor. The stamp shall

be affixed in strict accordance with the commission's rules and

regulations.

Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2001, 77th Leg., ch. 191, Sec. 3, eff.

Sept. 1, 2001.

Sec. 201.72. DUTY TO PRINT. The commission and the board of

control shall have engraved or printed the liquor and beer tax

stamps required by this code. The board of control shall let the

contracts for the stamps required by this code as provided by

law. The commission shall expend funds necessary to keep an ample

supply of stamps on hand.

Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.73. DESIGN. The commission shall prescribe the design

and denomination of the tax stamps. Each stamp must show the

amount of tax for which it evidences payment and shall contain

the words "Texas State Tax Paid."

Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.74. OPERATION OF TAX STAMP PROGRAM. (a) The

commission is responsible for the custody and sale of tax stamps

and for the proceeds of the sales.

(b) The commission may sell tax stamps only to a person

designated by the commission.

(c) The commission may designate any state or national bank in

this state as its agent to deliver and collect for any tax stamps

and to remit the sale proceeds to it.

(d) Invoices for tax stamps shall be issued by the commission in

duplicate and numbered consecutively. The original of the invoice

shall be forwarded to the purchaser or to the person in whose

care it may be sent for the benefit of a qualified purchaser. The

second copy shall be kept by the commission.

(e) The commission shall keep a permanent record of all tax

stamps received and sold. This record shall provide a perpetual

inventory of all tax stamps and their disposition.

Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1995, 74th Leg., ch. 280, Sec. 1, eff.

Sept. 1, 1995.

Sec. 201.75. DELIVERY OF STAMPS. The commission shall prescribe

the manner in which tax stamps are delivered to its inspectors in

charge of ports of entry.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1995, 74th Leg., ch. 280, Sec. 2, eff.

Sept. 1, 1995.

Sec. 201.76. REFUNDS. (a) The commission may make refunds for

tax stamps in all cases where:

(1) stamped liquor is returned to the distillery or

manufacturer, on certification by a duly authorized

representative of the commission who inspected the shipment;

(2) stamped liquor has been destroyed, on certification by a

duly authorized representative of the commission that the liquor

has been destroyed;

(3) a person who has been authorized to purchase tax stamps and

is in possession of unused tax stamps on discontinuation of

business; and

(4) tax stamps of improper value have been erroneously affixed

to a bottle or container of liquor and those tax stamps have been

destroyed in a manner prescribed by the commission.

(b) To obtain a refund under this section, it must be shown that

the tax stamps for which a refund is asked were purchased from

the commission and that the refund is made to a person authorized

to purchase tax stamps from the commission. No other refunds for

tax stamps are allowed.

(c) Sufficient funds to pay refunds for tax stamps may be

appropriated from the revenue derived from the sale of the tax

stamps before that revenue has been allocated.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1995, 74th Leg., ch. 280, Sec. 3, eff.

Sept. 1, 1995.

Sec. 201.77. WHO MAY PURCHASE STAMPS. The commission shall

designate those permittees or other persons entitled to purchase

state tax stamps.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.78. STAMPS FOR WINE. Tax stamps for wine shall be

issued in multiples of the rate assessed for each pint and for

each one-tenth of a gallon.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.79. ALTERNATIVE METHOD OF COLLECTING TAX ON WINE. The

commission may provide by rule an alternative method of

collecting the tax on wine. That method may dispense with the use

of tax stamps.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.80. EXEMPTION. The commission may prescribe by order

special rules for the payment of the tax imposed by Subchapter A

or B of this chapter in any circumstance that in the judgment of

the commission creates an emergency or makes it impractical to

require the affixing of tax stamps.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.81. STAMPS FOR DISTILLED SPIRITS. Tax stamps for

distilled spirits may be issued only in multiples of the rate

assessed each half-pint, except that when distilled spirits are

contained in containers of one-tenth of a gallon, tax stamps

shall be issued at the assessed rate for each type of distilled

spirit.

Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 201.82. IMPORTED DISTILLED SPIRITS; FEDERAL STAMP. A

container of distilled spirits that has a federal liquor strip

stamp attached or that has been imported from a foreign country

is subject to taxation and must have the appropriate state tax

stamp for distilled spirits affixed to it, unless it is taxed

under the reporting system.

Acts 1977, 65th Leg., p. 535, ch. 194, Sec. 1, eff. Sept. 1,

1977.