CHAPTER 183. MIXED BEVERAGE TAX - Texas Statutes

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE G. GROSS RECEIPTS TAXES

CHAPTER 183. MIXED BEVERAGE TAX

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 183.001. DEFINITIONS. (a) The definitions in Section

1.04, Alcoholic Beverage Code, apply to this chapter.

(b) In this chapter:

(1) "Permittee" means a mixed beverage permittee, a private club

registration permittee, a private club exemption certificate

permittee, a private club late hours permittee, a daily temporary

private club permittee, a private club registration permittee

holding a food and beverage certificate, a daily temporary mixed

beverage permittee, a mixed beverage late hours permittee, a

mixed beverage permittee holding a food and beverage certificate,

or a caterer permittee.

(2) "Business day" means the period beginning at 3 a.m. one day

and ending at 3 a.m. the next day.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 1001, Sec. 1, eff.

Aug. 28, 1995; Acts 1995, 74th Leg., ch. 1001, Sec. 7, eff. Sept.

1, 1995.

SUBCHAPTER B. MIXED BEVERAGE TAX

Sec. 183.021. TAX IMPOSED ON MIXED BEVERAGES. A tax at the rate

of 14 percent is imposed on the gross receipts of a permittee

received from the sale, preparation, or service of mixed

beverages or from the sale, preparation, or service of ice or

nonalcoholic beverages that are sold, prepared, or served for the

purpose of being mixed with an alcoholic beverage and consumed on

the premises of the permittee.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994.

Sec. 183.022. TAX RETURN DUE DATE. (a) A permittee shall file

a tax return with the comptroller not later than the 20th day of

each month.

(b) The return under this section shall be in a form prescribed

by the comptroller and shall include a statement of the total

gross taxable receipts during the preceding month and any other

information required by the comptroller.

(c) A tax due for a business day that falls in two different

months is allocated to the month in which the business day

begins.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 1001, Sec. 2, eff.

Aug. 28, 1995.

Sec. 183.023. PAYMENT. The tax due for the preceding month

shall accompany the return and shall be payable to the state. The

comptroller shall deposit the revenue in the general revenue

fund.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994. Amended by Acts 1997, 75th Leg., ch. 1035, Sec. 71, eff.

Sept. 1, 1997.

SUBCHAPTER C. MIXED BEVERAGE TAX CLEARANCE

Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE FUND. (a) Not later

than the last day of the month following a calendar quarter, the

comptroller shall calculate the total amount of taxes received

during the quarter from permittees outside an incorporated

municipality within each county and the total amount received

from permittees within each incorporated municipality in each

county.

(b) The comptroller shall issue to each county described in

Subsection (a) a warrant drawn on the general revenue fund in an

amount appropriated by the legislature that may not be greater

than 10.7143 percent of receipts from permittees within the

county during the quarter and shall issue to each incorporated

municipality described in Subsection (a) a warrant drawn on that

fund in an amount appropriated by the legislature that may not be

greater than 10.7143 percent of receipts from permittees within

the incorporated municipality during the quarter.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994. Amended by Acts 1999, 76th Leg., ch. 1467, Sec. 2.63, 2.64,

eff. Oct. 1, 1999.

Sec. 183.052. CONFLICT OF RULES. If a rule or policy adopted by

the commission conflicts with a rule adopted by the comptroller

for the application, enforcement, or collection of the tax

imposed by this chapter, the comptroller's rule prevails. A

conflicting rule or policy adopted by the commission is invalid

to the extent of the inconsistency. If the comptroller determines

that a rule or policy adopted by the commission conflicts with

one adopted by the comptroller relating to the application,

enforcement, or collection of the tax imposed by this chapter,

the comptroller shall notify the commission in writing of the

determination. After receipt of the notification, the commission

must amend or repeal the conflicting rule or policy not later

than the 90th day after the date of notification.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994.

Sec. 183.053. SECURITY REQUIREMENT. (a) A permittee subject to

the tax imposed by this chapter must comply with the security

requirements imposed by Chapter 151 except that a permittee is

not required to comply with Section 151.253(b).

(b) The total of bonds, certificates of deposit, letters of

credit, or other security determined to be sufficient by the

comptroller of a permittee subject to the tax imposed by this

chapter shall be in an amount that the comptroller determines to

be sufficient to protect the fiscal interests of the state. The

comptroller may not set the amount of security at less than

$1,000 or more than the greater of $100,000 or four times the

amount of the permittee's average monthly tax liability.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994. Amended by Acts 2001, 77th Leg., ch. 442, Sec. 24, eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

931, Sec. 9, eff. June 15, 2007.

Sec. 183.054. AUDIT FREQUENCY. The comptroller shall have the

discretion to determine the frequency of mixed beverage tax

audits. In determining the frequency of the audit the comptroller

may consider the following factors:

(1) reasonable and prudent accounting standards;

(2) the audit history of the permittee;

(3) the effect on state revenues; and

(4) other factors the comptroller deems appropriate.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994.

Sec. 183.055. CREDITS AND REFUNDS FOR BAD DEBTS. (a) A

permittee may withhold the payment of the tax on a portion of the

gross receipts that remains unpaid by a purchaser if:

(1) during the reporting period in which the mixed beverage is

sold, the permittee determines that the unpaid portion will

remain unpaid;

(2) the permittee enters the unpaid portion of the sales gross

receipts in the permittee's books as a bad debt; and

(3) the bad debt is claimed as a deduction for federal tax

purposes during the same or a subsequent reporting period.

(b) If the portion of a debt determined to be bad under

Subsection (a) is paid, the permittee shall report and pay the

tax on the portion during the reporting period in which payment

is made.

(c) A permittee is entitled to credit or reimbursement for taxes

paid on the portion of the gross receipts determined to be

worthless and actually charged off for federal income tax

purposes.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 106, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 1001, Sec. 3, eff.

Aug. 28, 1995.