83R17979 BEF-F
By: Hilderbran, Eiland, Otto, Bohac H.B. No. 3572
Substitute the following for H.B. No. 3572:
By: Hilderbran C.S.H.B. No. 3572
A BILL TO BE ENTITLED
AN ACT
relating to the administration, collection, and enforcement of
taxes on mixed beverages; imposing a tax on sales of mixed
beverages; decreasing the rate of the current tax on mixed
beverages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.308(a), Tax Code, is amended to read
as follows:
(a) The following are exempted from the taxes imposed by
this chapter:
(1) oil as taxed by Chapter 202;
(2) sulphur as taxed by Chapter 203;
(3) motor fuels and special fuels as defined, taxed,
or exempted by Chapter 162;
(4) cement as taxed by Chapter 181;
(5) motor vehicles, trailers, and semitrailers as
defined, taxed, or exempted by Chapter 152, other than a mobile
office or an oilfield portable unit, as those terms are defined by
Section 152.001;
(6) mixed beverages, ice, or nonalcoholic beverages
and the preparation or service of these items if the receipts are
taxable by Subchapter B, Chapter 183, or the items are taxable by
Subchapter B-1, Chapter 183;
(7) alcoholic beverages when sold to the holder of a
private club registration permit or to the agent or employee of the
holder of a private club registration permit if the holder or agent
or employee is acting as the agent of the members of the club and if
the beverages are to be served on the premises of the club;
(8) oil well service as taxed by Subchapter E, Chapter
191; and
(9) insurance premiums subject to gross premiums
taxes.
SECTION 2. The heading to Subtitle G, Title 2, Tax Code, is
amended to read as follows:
SUBTITLE G. GROSS RECEIPTS AND MIXED BEVERAGE TAXES
SECTION 3. The heading to Chapter 183, Tax Code, is amended
to read as follows:
CHAPTER 183. MIXED BEVERAGE TAXES [TAX]
SECTION 4. Section 183.001(b), Tax Code, is amended by
adding Subdivision (3) to read as follows:
(3) "Sales price" has the meaning assigned by Section
151.007, as applicable.
SECTION 5. The heading to Subchapter B, Chapter 183, Tax
Code, is amended to read as follows:
SUBCHAPTER B. MIXED BEVERAGE GROSS RECEIPTS TAX
SECTION 6. Section 183.021, Tax Code, is amended to read as
follows:
Sec. 183.021. TAX IMPOSED ON GROSS RECEIPTS OF PERMITTEE
FROM MIXED BEVERAGES. A tax at the rate of seven [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.
SECTION 7. Section 183.0212(a), Tax Code, is amended to
read as follows:
(a) For informational purposes only, a permittee may
provide that each sales invoice, billing, service check, ticket, or
other receipt to a customer for the purchase of an item subject to
taxation under this subchapter [chapter] include a separate
statement disclosing the amount of tax to be paid by the permittee
under this subchapter [chapter] in relation to that item.
SECTION 8. Sections 183.024(a) and (d), Tax Code, are
amended to read as follows:
(a) A permittee who fails to file a report as required by
this subchapter [chapter] or who fails to pay a tax imposed by this
subchapter [chapter] when due shall pay five percent of the amount
due as a penalty, and if the permittee fails to file the report or
pay the tax within 30 days after the day the tax or report is due,
the permittee shall pay an additional five percent of the amount due
as an additional penalty.
(d) In addition to any other penalty authorized by this
section, a permittee who fails to file a report as required by this
subchapter [chapter] shall pay a penalty of $50. The penalty
provided by this subsection is assessed without regard to whether
the permittee subsequently files the report or whether any taxes
were due from the permittee for the reporting period under the
required report.
SECTION 9. Section 183.053, Tax Code, is transferred to
Subchapter B, Chapter 183, Tax Code, redesignated as Section
183.025, Tax Code, and amended to read as follows:
Sec. 183.025 [183.053]. SECURITY REQUIREMENT. (a) A
permittee subject to the tax imposed by this subchapter [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
subchapter [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.
SECTION 10. Section 183.054, Tax Code, is transferred to
Subchapter B, Chapter 183, Tax Code, redesignated as Section
183.026, Tax Code, and amended to read as follows:
Sec. 183.026 [183.054]. AUDIT FREQUENCY. The comptroller
shall have the discretion to determine the frequency of mixed
beverage tax audits under this subchapter. 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.
SECTION 11. Section 183.055, Tax Code, is transferred to
Subchapter B, Chapter 183, Tax Code, redesignated as Section
183.027, Tax Code, and amended to read as follows:
Sec. 183.027 [183.055]. CREDITS AND REFUNDS FOR BAD DEBTS.
(a) A permittee may withhold the payment of the tax under this
subchapter 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.
SECTION 12. Chapter 183, Tax Code, is amended by adding
Subchapter B-1 to read as follows:
SUBCHAPTER B-1. MIXED BEVERAGE SALES TAX
Sec. 183.041. TAX IMPOSED ON SALES OF MIXED BEVERAGES AND
RELATED ITEMS. (a) A tax is imposed on each mixed beverage sold,
prepared, or served by a permittee in this state and on ice and each
nonalcoholic beverage sold, prepared, or served by a permittee in
this state for the purpose of being mixed with an alcoholic beverage
and consumed on the premises of the permittee.
(b) The rate of the tax is 8.25 percent of the sales price of
the item sold, prepared, or served.
Sec. 183.042. SEPARATE DISCLOSURE OF TAX ALLOWED. (a) For
informational purposes only, a permittee may provide that each
sales invoice, billing, service check, ticket, or other receipt to
a customer for the purchase of an item subject to taxation under
this subchapter include a separate statement disclosing the amount
of tax imposed on the item under this subchapter.
(b) The separate statement must clearly disclose the amount
of tax.
Sec. 183.043. APPLICABILITY OF OTHER LAW. (a) Except as
otherwise provided by this section:
(1) the tax imposed by this subchapter is
administered, collected, and enforced in the same manner as the tax
under Chapter 151 is administered, collected, and enforced; and
(2) Chapter 151 applies to the tax imposed by this
subchapter in the same manner as Chapter 151 applies to the tax
imposed under Section 151.051.
(b) Sections 151.423 and 151.424 do not apply to the tax
imposed by this subchapter.
(c) A sale to a permittee of an item described by Section
183.021 is not a sale for resale for purposes of Section 151.302 if
the item is mixed with or becomes a component part of a mixed
beverage subject to taxation under this subchapter that is served
without any consideration paid to the permittee.
(d) An item subject to tax under this subchapter is exempt
from the taxes imposed under Subtitle C, Title 3.
SECTION 13. Section 183.051, Tax Code, as effective
September 1, 2013, is amended to read as follows:
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
under Subchapters B and B-1 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 less than
10.7143 percent of the taxes received [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 less than 10.7143 percent of the taxes received
[receipts] from permittees within the incorporated municipality
during the quarter.
SECTION 14. Section 183.052, Tax Code, is amended to read as
follows:
Sec. 183.052. CONFLICT OF RULES. If a rule or policy
adopted by the Texas Alcoholic Beverage Commission [commission]
conflicts with a rule adopted by the comptroller for the
application, enforcement, or collection of a [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 a [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.
SECTION 15. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 16. This Act takes effect January 1, 2014.