LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 19, 2013 TO: Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1622 by Stickland (Relating to the alcoholic beverage licenses and permits that may be issued in an area that has approved the sale of mixed beverages.), As Introduced The change in law could reduce tax revenue in some areas. Any revenue losses, however, could be offset by new businesses applying for a permit or license to sell beer and/or wine. Therefore, there could be an indeterminate fiscal impact to the state. The bill would amend the Alcoholic Beverage Code regarding licenses and permits that may be issued in an area that has been approved for the sale of mixed beverages. The bill would amend Chapters 25 (wine and beer retailer's permit), 69 (retail dealer's on-premise license), and 70 (retail dealer's on-premise late hours license) to allow the specified permit and licenses to be issued for a premises in an area where the voters have approved both (1) the legal sale of beer and wine for off-premise consumption only and (2) the legal sale of mixed beverages. This change in law could reduce tax revenue in some areas where businesses currently paying the 14 percent mixed beverage gross receipts tax, required by their mixed beverage permit, switch to a less expensive license or permit that would allow them to sell beer and/or wine and to pay the lower sales tax rate on those sales. Any revenue losses, however, could be offset by new businesses applying for a permit or license to sell beer and/or wine, which previously had no alcoholic beverage permit. The bill would take effect September 1, 2013. Local Government Impact The fiscal impact on local units of government cannot be determined. Source Agencies:304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission LBB Staff: UP, RB, SD, AG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 19, 2013
TO: Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1622 by Stickland (Relating to the alcoholic beverage licenses and permits that may be issued in an area that has approved the sale of mixed beverages.), As Introduced
TO: Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1622 by Stickland (Relating to the alcoholic beverage licenses and permits that may be issued in an area that has approved the sale of mixed beverages.), As Introduced
Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures
Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1622 by Stickland (Relating to the alcoholic beverage licenses and permits that may be issued in an area that has approved the sale of mixed beverages.), As Introduced
HB1622 by Stickland (Relating to the alcoholic beverage licenses and permits that may be issued in an area that has approved the sale of mixed beverages.), As Introduced
The change in law could reduce tax revenue in some areas. Any revenue losses, however, could be offset by new businesses applying for a permit or license to sell beer and/or wine. Therefore, there could be an indeterminate fiscal impact to the state.
The change in law could reduce tax revenue in some areas. Any revenue losses, however, could be offset by new businesses applying for a permit or license to sell beer and/or wine. Therefore, there could be an indeterminate fiscal impact to the state.
The bill would amend the Alcoholic Beverage Code regarding licenses and permits that may be issued in an area that has been approved for the sale of mixed beverages. The bill would amend Chapters 25 (wine and beer retailer's permit), 69 (retail dealer's on-premise license), and 70 (retail dealer's on-premise late hours license) to allow the specified permit and licenses to be issued for a premises in an area where the voters have approved both (1) the legal sale of beer and wine for off-premise consumption only and (2) the legal sale of mixed beverages. This change in law could reduce tax revenue in some areas where businesses currently paying the 14 percent mixed beverage gross receipts tax, required by their mixed beverage permit, switch to a less expensive license or permit that would allow them to sell beer and/or wine and to pay the lower sales tax rate on those sales. Any revenue losses, however, could be offset by new businesses applying for a permit or license to sell beer and/or wine, which previously had no alcoholic beverage permit. The bill would take effect September 1, 2013.
The bill would amend the Alcoholic Beverage Code regarding licenses and permits that may be issued in an area that has been approved for the sale of mixed beverages.
The bill would amend Chapters 25 (wine and beer retailer's permit), 69 (retail dealer's on-premise license), and 70 (retail dealer's on-premise late hours license) to allow the specified permit and licenses to be issued for a premises in an area where the voters have approved both (1) the legal sale of beer and wine for off-premise consumption only and (2) the legal sale of mixed beverages.
This change in law could reduce tax revenue in some areas where businesses currently paying the 14 percent mixed beverage gross receipts tax, required by their mixed beverage permit, switch to a less expensive license or permit that would allow them to sell beer and/or wine and to pay the lower sales tax rate on those sales. Any revenue losses, however, could be offset by new businesses applying for a permit or license to sell beer and/or wine, which previously had no alcoholic beverage permit.
The bill would take effect September 1, 2013.
Local Government Impact
The fiscal impact on local units of government cannot be determined.
Source Agencies: 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff: UP, RB, SD, AG
UP, RB, SD, AG