H.B. No. 4542
AN ACT
relating to reports by persons involved in the manufacture and
distribution of alcoholic beverages for purposes of sales and use
taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 111, Tax Code, is amended
by adding Section 111.0023 to read as follows:
Sec. 111.0023. Definition of Individual. For purposes of
this title, "individual" means a natural person. The term does not
include a partnership, limited liability partnership, corporation,
banking corporation, savings and loan association, limited
liability company, business trust, professional association,
business association, joint venture, joint stock company, holding
company, or other legal entity.
SECTION 2. Section 111.006, Tax Code, is amended by
amending Subsection (h) and adding Subsection (j) to read as
follows:
(h) The comptroller shall disclose information to a person
regarding net sales by quantity, brand, and size that is submitted
in a report required under Section 151.462 if:
(1) the person requesting the information holds a
permit or license under Chapter 19, 20, 21, 37, 64, 65, or 66,
Alcoholic Beverage Code; [and]
(2) the request relates only to information regarding
the sale of a product distributed by the person making the request;
and
(3) the comptroller determines that the information
reported under Section 151.462 or in accordance with rules adopted
under Subsection (j) is sufficiently detailed to protect the
confidentiality of sales information relating to products not
distributed by the person requesting the information.
(j) The comptroller may adopt rules to administer this
section, including rules requiring a person requesting information
under Subsection (h) to file reports on distributions of the
person's products made to other persons.
SECTION 3. Section 151.461, Tax Code, is amended by adding
Subdivision (1-a) and amending Subdivision (5) to read as follows:
(1-a) "Brewpub" means a brewpub for which a person
holds a brewpub license under Chapter 74, Alcoholic Beverage Code.
(5) "Retailer" means a person required to hold:
(A) a wine and beer retailer's permit under
Chapter 25, Alcoholic Beverage Code;
(B) a wine and beer retailer's off-premise permit
under Chapter 26, Alcoholic Beverage Code;
(C) a temporary wine and beer retailer's permit
or special three-day wine and beer permit under Chapter 27,
Alcoholic Beverage Code;
(D) a mixed beverage permit under Chapter 28,
Alcoholic Beverage Code;
(E) a daily temporary mixed beverage permit under
Chapter 30, Alcoholic Beverage Code;
(F) a private club registration permit under
Chapter 32, Alcoholic Beverage Code;
(G) a certificate issued to a fraternal or
veterans organization under Section 32.11, Alcoholic Beverage
Code;
(H) a daily temporary private club permit under
Subchapter B, Chapter 33, Alcoholic Beverage Code;
(I) a temporary auction permit under Chapter 53,
Alcoholic Beverage Code;
(J) a retail dealer's on-premise license under
Chapter 69, Alcoholic Beverage Code;
(K) a temporary license under Chapter 72,
Alcoholic Beverage Code; [or]
(L) a retail dealer's off-premise license under
Chapter 71, Alcoholic Beverage Code, except for a dealer who also
holds a package store permit under Chapter 22, Alcoholic Beverage
Code; or
(M) a brewpub license under Chapter 74, Alcoholic
Beverage Code.
SECTION 4. Section 151.462, Tax Code, is amended to read as
follows:
Sec. 151.462. REPORTS BY BREWERS, MANUFACTURERS, BREWPUBS,
WHOLESALERS, AND DISTRIBUTORS. (a) The comptroller shall require
each brewer, manufacturer, brewpub, wholesaler, distributor, or
package store local distributor to file with the comptroller a
report each month of alcoholic beverage sales to retailers in this
state.
(b) Each brewer, manufacturer, brewpub, wholesaler,
distributor, or package store local distributor shall file a
separate report for each permit or license held on or before the
25th day of each month. The report must contain the following
information for the preceding calendar month's sales in relation to
each retailer:
(1) the brewer's, manufacturer's, brewpub's,
wholesaler's, distributor's, or package store local distributor's
name, address, taxpayer number and outlet number assigned by the
comptroller, and alphanumeric permit or license number issued by
the Texas Alcoholic Beverage Commission;
(2) the retailer's:
(A) name and address, including street name and
number, city, and zip code;
(B) taxpayer number assigned by the comptroller;
and
(C) alphanumeric permit or license number issued
by the Texas Alcoholic Beverage Commission for each separate retail
location or outlet to which the brewer, manufacturer, brewpub,
wholesaler, distributor, or package store local distributor sold
the alcoholic beverages that are listed on the report; and
(3) the monthly net sales made by the brewer,
manufacturer, brewpub, wholesaler, distributor, or package store
local distributor to the retailer for each outlet or location
covered by a separate retail permit or license issued by the Texas
Alcoholic Beverage Commission, including separate line items for:
(A) the number of units of alcoholic beverages;
(B) the individual container size and pack of
each unit;
(C) the brand name;
(D) the type of beverage, such as distilled
spirits, wine, or malt beverage;
(E) the universal product code of the alcoholic
beverage; and
(F) the net selling price of the alcoholic
beverage.
(c) Except as provided by this subsection, the brewer,
manufacturer, brewpub, wholesaler, distributor, or package store
local distributor shall file the report with the comptroller
electronically. The comptroller may establish procedures to
temporarily postpone the electronic reporting requirement for a
brewer, manufacturer, brewpub, wholesaler, distributor, or package
store local distributor who demonstrates to the comptroller an
inability to comply because undue hardship would result if it were
required to file the return electronically. If the comptroller
determines that another technological method of filing the report
is more efficient than electronic filing, the comptroller may
establish procedures requiring its use by brewers, manufacturers,
brewpubs, wholesalers, distributors, and package store local
distributors.
SECTION 5. Subchapter I-1, Chapter 151, Tax Code, is
amended by adding Section 151.4661 to read as follows:
Sec. 151.4661. APPLICABILITY TO CERTAIN BREWPUBS. This
subchapter applies only to a brewpub that engages in activities
authorized by Section 74.08, Alcoholic Beverage Code.
SECTION 6. Section 151.468(b), Tax Code, is amended to read
as follows:
(b) In addition to the penalties imposed under Subsection
(a), a brewer, manufacturer, brewpub, wholesaler, distributor, or
package store local distributor shall pay the state a civil penalty
of not less than $25 or more than $2,000 for each day a violation
continues if the brewer, manufacturer, brewpub, wholesaler,
distributor, or package store local distributor:
(1) violates this subchapter; or
(2) violates a rule adopted to administer or enforce
this subchapter.
SECTION 7. Section 151.470, Tax Code, is amended to read as
follows:
Sec. 151.470. AUDIT; INSPECTION. The comptroller may
audit, inspect, or otherwise verify a brewer's, manufacturer's,
brewpub's, wholesaler's, distributor's, or package store local
distributor's compliance with this subchapter.
SECTION 8. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4542 was passed by the House on May 7,
2019, by the following vote: Yeas 141, Nays 5, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 4542 on May 23, 2019, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 4542 on May 26, 2019, by the following vote: Yeas 140,
Nays 2, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4542 was passed by the Senate, with
amendments, on May 21, 2019, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
4542 on May 26, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor