| (a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Alcoholic beverage--This term has the same meaning
as assigned by §3.1001 of this title (relating to Mixed Beverage
Gross Receipts Tax).
(2) Complimentary alcoholic beverage--This term has
the same meaning as assigned by §3.1001 of this title.
(3) Governmental entity--An organization that is exempted
from sales and use tax otherwise imposed on their purchases under
Tax Code, Chapter 151 (Limited Sales, Excise, and Use Taxes), by operation
of Tax Code, §151.309 (Governmental Entities).
(4) Nonprofit organization--An organization that is
exempted from the sales and use tax imposed under Tax Code, Chapter
151, by operation of Tax Code, §151.310(a) (Religious, Educational,
and Public Service Organizations).
(5) Permittee--This term has the same meaning as assigned
by §3.1001 of this title.
(b) Mixed beverage sales tax. A tax at a rate of 8.25%
is imposed on each alcoholic beverage sold, prepared, or served by
a permittee, and on ice and each nonalcoholic beverage sold, prepared,
or served by a permittee to be mixed with alcohol and consumed on
the permittee's premises. The sales price of each item on which mixed
beverage sales tax is imposed includes, but is not limited to, those
items identified in §3.1001(c) of this title. Those items identified
in §3.1001(f)(1) - (7) of this title are excluded from the sales
price of items on which mixed beverage sales tax is imposed. Mixed
beverage sales tax is imposed in addition to the mixed beverage gross
receipts tax imposed under Tax Code, Chapter 183, Subchapter B.
(c) Administration, collection, and enforcement of
mixed beverage sales tax.
(1) Except as otherwise provided in this paragraph,
mixed beverage sales tax is administered, collected, and enforced
in the same manner as sales and use tax is administered, collected,
and enforced in Tax Code, Chapter 151, except:
(A) a permittee may not deduct or withhold any amount
of taxes collected as reimbursement for the cost of collecting the
tax, pursuant to Tax Code, §151.423 (Reimbursement to Taxpayer
for Tax Collection); and
(B) a permittee may not receive a discount for prepaying
the tax, pursuant to Tax Code, §151.424 (Discount for Prepayments).
(C) any record, report or other instrument required
to be filed by a permittee is not confidential under Tax Code, §151.027(a)
(Confidentiality of Tax Information).
(2) Tax due is debt of the purchaser. Mixed beverage
sales tax is a debt of the purchaser to the permittee until collected.
(3) Tax-included sales price. The total amount shown
on a customer's sales invoice, billing, service check, ticket, or
other receipt for sales that are subject to mixed beverage sales tax
is presumed to be the sales price, without tax included. Contracts,
bills, invoices, or other receipts that merely state that "all taxes"
are included are not sufficient to relieve either the customer or
the permittee of their tax responsibilities on the transaction. The
permittee may overcome the presumption by using the permittee's records
to show that tax was included in the sales price.
(4) Record-keeping requirements. Permittees are responsible
for creating and maintaining records of purchases and sales as required
by §3.1001(j) - (m) and (o) of this title.
(5) Bad debts. The exclusion of bad debts from the
mixed beverage gross receipts tax base, as established in §3.1001(n)
of this title, does not apply to mixed beverage sales tax. Bad debt
deductions from mixed beverage sales tax are treated in the same manner
as bad debt deductions from sales tax. For more information on bad
debt deductions from sales tax, refer to §3.302 of this title
(relating to Accounting Methods, Credit Sales, Bad Debt Deductions,
Repossession, Interest on Sales Tax, and Trade-Ins).
(d) Separate tax disclosure statement.
(1) A permittee may include on a customer's sales invoice,
billing, service check, ticket, or other receipt that includes an
item subject to mixed beverage sales tax:
(A) a statement that mixed beverage sales tax is included
in the sales price;
(B) a separate statement of the amount of mixed beverage
gross receipts tax to be paid by the permittee on that sale;
(C) a separate statement of the amount of mixed beverage
sales tax imposed on that item;
(D) a statement of the combined amount of mixed beverage
gross receipts tax and mixed beverage sales tax to be paid on that
item; or
(E) a statement of the combined amount of mixed beverage
sales tax and sales and use tax imposed under Tax Code, Chapter 151,
to be paid on all items listed on that sales invoice, billing, service
check, ticket, or other receipt.
(2) Mixed beverage gross receipts tax cannot be charged
to or paid by the customer. A receipt with a statement of the combined
amount of mixed beverage gross receipts tax and mixed beverage sales
tax provided in paragraph (1)(D) of this subsection must clearly show
that the customer is not being charged mixed beverage gross receipts
tax.
(3) For each receipt with a statement of the combined
amount of mixed beverage sales tax and sales and use tax, as provided
in paragraph (1)(E) of this subsection, the permittee's books and
records must clearly show the amount of mixed beverage sales tax and
sales and use tax on each sale of alcohol.
(4) Examples of disclosure of tax statements.
Attached Graphic
(e) Complimentary beverages. A permittee owes sales
and use tax, as imposed by Tax Code, Chapter 151, on the purchase
of alcoholic beverages, ice, and nonalcoholic beverages that are ingredients
of a complimentary alcoholic beverage or that are served or provided
by the permittee, without any consideration from the customer, to
be mixed with a complimentary alcoholic beverage and consumed on the
permittee's premises. The permittee also owes sales and use tax on
taxable items that are furnished with a complimentary alcoholic beverage,
such as napkins and straws.
(f) Exemptions; governmental entities; nonprofit organizations;
university and student organizations; volunteer fire departments;
temporary permit.
(1) Governmental entity exempt on purchase of alcohol.
A governmental entity can claim an exemption from mixed beverage sales
tax on the purchase of alcohol in the same manner as a governmental
entity can claim exemption from the payment of sales and use tax on
the purchase of alcohol under Tax Code, §151.309.
(2) Purchase of alcohol by nonprofit organization not
exempt. A nonprofit organization cannot claim an exemption from the
mixed beverage sales tax on the purchase of alcohol. In addition,
except as provided in this subsection, a nonprofit organization is
responsible for collecting mixed beverage sales tax on the sale, preparation,
or service of alcoholic beverages to the same extent that the organization
is responsible for paying mixed beverage gross receipts tax on such
beverages. For more information, refer to §3.1001(e) of this
title.
(3) Nonprofit organizations; fundraising events.
(A) The sale, preparation, or service of alcohol is
exempt from mixed beverage sales tax when sold by a nonprofit organization
that qualifies for exemption from sales and use tax under Tax Code, §151.310(a)(1)
or (2) during a qualifying fundraising sale or auction authorized
by Tax Code, §151.310(c).
(B) Except as provided in subparagraph (A) of this
paragraph, the sale, preparation, or service of alcohol by a nonprofit
organization that qualifies for exemption from sales and use tax under
Tax Code, §151.310(a)(1) or (2) is computed in the same manner
as mixed beverage gross receipts tax is computed in §3.1001(e)
of this title.
(4) University and college student organizations. The
sale, preparation, or service of alcohol is exempt from mixed beverage
sales tax when sold by a university or college student organization
that is certified as an affiliated organization by a university or
college as defined in Education Code, §61.003 (Definitions) during
a sale authorized by Tax Code, §151.321 (University and College
Student Organizations).
(5) Volunteer fire departments; fundraising events.
The sale, preparation, or service of alcohol is exempt from mixed
beverage sales tax when sold by a volunteer fire department that qualifies
for exemption from sales and use tax under Tax Code, §151.310(a)(4)
during a qualifying fundraising sale or auction authorized by Tax
Code, §151.310(c-1). This exemption is effective May 28, 2015.
A previous exemption from mixed beverage sales tax on the sale, preparation,
or service of alcohol when sold by volunteer fire departments at fundraising
events expired on September 1, 2014.
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