LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 23, 2013 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2078 by Thompson, Senfronia (Relating to imposing an additional mixed beverage tax and depositing the revenue in the crime victim compensation fund.), As Introduced The bill will produce a revenue gain to GR Account 0469-Compensation to Victims of Crime starting in fiscal year 2014. As mixed beverage permittees do not report the number of drinks sold, the revenue gain is indeterminate. However, as an illustrative example, the Comptroller estimates the revenue gain from the new tax could be approximately $10 million per year. The bill would amend Chapter 183 of the Tax Code, regarding the mixed beverage tax, to add a one cent tax to each mixed beverage sold, prepared, or served and each serving of ice or nonalcoholic beverage sold, prepared, or served for the purpose of being mixed with an alcoholic beverage by a mixed beverage permittee on the permittee's premises. The bill would direct the proceeds from the additional tax to GR Account 0469-Compensation to Victims of Crime. The bill only addresses alcoholic beverages sold at establishments with a mixed beverage permit. Since mixed beverage permittees do not report the number of drinks sold, the Comptroller of Public Accounts reports the fiscal implications cannot be estimated. For illustrative purposes and based on fiscal 2012 mixed beverage tax collections of $728 million, if one assumes an average drink price of $5 the additional revenue from the new tax could be approximately $10 million per year. The bill would take effect September 1, 2013. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: UP, RB, SD, AG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 23, 2013
TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2078 by Thompson, Senfronia (Relating to imposing an additional mixed beverage tax and depositing the revenue in the crime victim compensation fund.), As Introduced
TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2078 by Thompson, Senfronia (Relating to imposing an additional mixed beverage tax and depositing the revenue in the crime victim compensation fund.), 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
HB2078 by Thompson, Senfronia (Relating to imposing an additional mixed beverage tax and depositing the revenue in the crime victim compensation fund.), As Introduced
HB2078 by Thompson, Senfronia (Relating to imposing an additional mixed beverage tax and depositing the revenue in the crime victim compensation fund.), As Introduced
The bill will produce a revenue gain to GR Account 0469-Compensation to Victims of Crime starting in fiscal year 2014. As mixed beverage permittees do not report the number of drinks sold, the revenue gain is indeterminate. However, as an illustrative example, the Comptroller estimates the revenue gain from the new tax could be approximately $10 million per year.
The bill will produce a revenue gain to GR Account 0469-Compensation to Victims of Crime starting in fiscal year 2014. As mixed beverage permittees do not report the number of drinks sold, the revenue gain is indeterminate. However, as an illustrative example, the Comptroller estimates the revenue gain from the new tax could be approximately $10 million per year.
The bill will produce a revenue gain to GR Account 0469-Compensation to Victims of Crime starting in fiscal year 2014. As mixed beverage permittees do not report the number of drinks sold, the revenue gain is indeterminate.
However, as an illustrative example, the Comptroller estimates the revenue gain from the new tax could be approximately $10 million per year.
The bill would amend Chapter 183 of the Tax Code, regarding the mixed beverage tax, to add a one cent tax to each mixed beverage sold, prepared, or served and each serving of ice or nonalcoholic beverage sold, prepared, or served for the purpose of being mixed with an alcoholic beverage by a mixed beverage permittee on the permittee's premises. The bill would direct the proceeds from the additional tax to GR Account 0469-Compensation to Victims of Crime. The bill only addresses alcoholic beverages sold at establishments with a mixed beverage permit. Since mixed beverage permittees do not report the number of drinks sold, the Comptroller of Public Accounts reports the fiscal implications cannot be estimated. For illustrative purposes and based on fiscal 2012 mixed beverage tax collections of $728 million, if one assumes an average drink price of $5 the additional revenue from the new tax could be approximately $10 million per year. The bill would take effect September 1, 2013.
The bill would amend Chapter 183 of the Tax Code, regarding the mixed beverage tax, to add a one cent tax to each mixed beverage sold, prepared, or served and each serving of ice or nonalcoholic beverage sold, prepared, or served for the purpose of being mixed with an alcoholic beverage by a mixed beverage permittee on the permittee's premises. The bill would direct the proceeds from the additional tax to GR Account 0469-Compensation to Victims of Crime.
The bill only addresses alcoholic beverages sold at establishments with a mixed beverage permit. Since mixed beverage permittees do not report the number of drinks sold, the Comptroller of Public Accounts reports the fiscal implications cannot be estimated. For illustrative purposes and based on fiscal 2012 mixed beverage tax collections of $728 million, if one assumes an average drink price of $5 the additional revenue from the new tax could be approximately $10 million per year.
The bill would take effect September 1, 2013.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 304 Comptroller of Public Accounts
302 Office of the Attorney General, 304 Comptroller of Public Accounts
LBB Staff: UP, RB, SD, AG
UP, RB, SD, AG