Bars and restaurant owners who obtain liquor licenses for their business in the Houston area can remain competitive through a variety of economic conditions. However, in order to be successful over the long term, each type of business must first obtain the correct Houston liquor license for their specific establishment. In addition, they need to be capable of attracting repeat customers, and the best way to do this is to make sure that customers never leave the premises with a bad taste in their mouth.

Houston Liquor License

Recent investigations of certain establishments in the areas of Houston, Seattle and Cleveland demonstrate a persistent trend of bad tasting draft beer. The problem starts when patrons of the bar or restaurant detect a foul aftertaste in their beer. According to the investigators, this bad taste has to do with a biochemical reaction that occurs when the line bringing the beer from the keg to the glass gets dirty.

Although it is not common for an establishment to lose a Houston Liquor License on account of dirty lines, this possibility does exist. Patrons who value these businesses should understand the situation as much as possible before planning a strategy of how to bring the problem to the owner’s attention. Whenever possible, try to frame the complaint in a way that shows that you care about the reputation of the establishment and want to see the business succeed. Owners are more likely to be receptive to constructive criticism when it is delivered in a way that is intended to help the business.

Houston Liquor License Service

The amount of lactobacillus that can cause the sour taste necessary to provoke a negative reaction in patrons is relatively small. Lactobacillus is a bacteria found in yogurt, cider, cheese and fermented products and does not pose a health risk but does produce a sour taste. This problem is not unique to any particular area, so beer drinkers can understand the risks involved by getting accurate information about bacteria contamination. A normal response to receiving a beer that does not taste right is to ask for a replacement. This is a natural response for people who are not regular customers; however, patrons who wish to return on a regular basis may check back later to see if the problem is resolved. It is usually one draft beer line in particular that causes a problem for many different people. The beer might taste sour or moldy, and many customers will avoid the issue just to be polite.

Maintaining a Houston Beer License

Restaurant or bar owners may simply be unaware of the existence of an actual problem. They may interpret customer complaints in a variety of ways, but incident reports alone will not locate or solve any actual problems. To complicate matters, the bacteria might accumulate in several locations throughout the entire distribution line. If the keg and the parts are both clean, a problem could develop undetected in an area that cannot be cleaned unless the entire system is serviced. Patrons who wish to bring the problem to the owner’s attention should consider using a diplomatic approach to resolving this issue.

Establishments who are invested in maintaining a Houston beer license will be aware of the dangers in allowing complaints to continue. Patrons who already have a good relationship with the owners are in a unique position to be effective in resolving the situation. These customers can serve as a form of quality control by approaching the owner with awareness. Try to address the issue of cleaning the lines as a way to retain customers and maintain the good standing of the business in the community. Keep in mind that a bad taste could be caused by a variety of issues, so remain polite, and consider providing business information about of a company that specializes in cleaning beer lines.

Craft beer breweries in Texas may not be contacting a Houston liquor license service until the latest brew-ha-ha over distribution is resolved. Texas has recently enacted legislation that prevents craft breweries from collecting fees from distributors for the privilege of selling their popular craft beers throughout Texas. This law would effectively force these independent brewers to give up millions of dollars in fees to beverage distributors who have connections to politicians. Naturally, the breweries are fighting back by suing the state over the new alcohol regulations.

Actually, this is not a new law. It was passed back in 2013 and forbade brewers from accepting any compensation from distributors. The lawsuit questions the constitutionality of forcing the brewers to donate a portion of their business to the distributors. The law also curtails the variety of craft beers that consumers in Texas can purchase. The result is that many craft breweries have put plans for expanding their operations on hold. New startup breweries will likely wait until the lawsuit is decided instead of applying for their Houston alcoholic beverage license or a Texas liquor license. That will also curtail revenue the state would love to receive.

Three Texas brewers teamed up with the Institute for Justice (IJ) to challenge the law. The proprietors of Revolver Brewing, Live Oak Brewing and Peticolas Brewing Company are merely trying to protect the businesses that they built from scratch.

Prior to the law’s passing, brewers were paid by their distributors for the right to market their beers in cities across Texas. This law has created a sudden, unexpected source of profit for the distributors. What makes the situation even worse is that the distributors can sell the rights for distribution to other distributors who cover areas other than major Texas cities like Houston, Dallas or Austin. Previously, brewers used those funds from the distributors to grow their businesses.

Matt Miller, the managing attorney for the Texas office of the IJ, said that the law could be compared to forcing authors to donate the rights to their books to their publishers. He believes that it was unconstitutional to hand over the brewers’ property to other businesses that neither earned nor deserved the right to charge others to distribute craft beers.

The president of Live Oak Brewing, Chip McElroy, said that he was honored to be involved in the new trend toward craft beer. He has dedicated 18 years to building his business, but the new law forced him to pull his product from beer stores in San Antonio, Dallas-Fort Worth and areas of Texas where consumers have been able to buy Live Oak beer in the past.

Live Oak Brewing and Revolver Brewing are based in Fort Worth. The other participant in the suit, Peticolas Brewing, is in Dallas. The law has clouded their ability and desire to expand their operations. However, the property rights and economic liberties of entrepreneurs are protected by the Texas Constitution. The lawsuit is seeking to overturn the 2013 legislation so that the breweries can maintain control of their businesses.

The lawsuit is one of several included in the IJ’s so-called National Food Freedom Initiative. Its intention is to challenge laws across the United States that hinder the rights of citizens to make, sell, buy and consume foods of their own choice. The IJ has already won a free speech challenge against a law in Oregon prohibiting the advertising of raw milk. Presently, the IJ is involved in other lawsuits over the right to sell homegrown vegetables in Miami Shores, Florida, and home-baked treats in Minnesota. They are also challenging a Florida law that bars using the name “skim milk.”

Are you looking to buy an alcoholic beverage in the Lone Star State? Unfortunately, it is not as simple as heading to the nearby grocery store or restaurant as the laws in Texas vary significantly from county to county, city to city and even block to block. Businesses looking to secure a Texas alcoholic beverage license will unfortunately find the process difficult or impossible in many places as 11 of the state’s 254 counties are completely dry, and 194 are partially dry.

Plano, which is situated mostly in Collin County about 20 miles north of Dallas, has been one of the more interesting cities as far as confusing laws go. Fortunately, those laws were simplified with the recent opening of the city’s first liquor stores. Prior to that point, you had to visit one of the city’s grocery stores that sold beer and wine to pick up alcoholic beverages; those were located in the newest 40 percent of Plano’s 72 square mile metro area.

Patrons who had visited restaurants in Plano were required to join a private club prior to ordering alcoholic beverages. This is still the case in a variety of communities throughout Texas, and it can cause quite a bit of confusion and sometimes frustration to those not expecting to have to hand over a driver’s license and join a club so that alcoholic beverages may be ordered.

This process is not easy on businesses both as the cost of keeping detailed records can add up to thousands of dollars every year, and the Texas Alcohol Beverage Commission regularly performs undercover checks to ensure that the laws are being followed. The Texas Restaurant Association has been working for years to eliminate this practice, which does not appear to create any jobs, tax revenue or otherwise provide any discernible benefits.

However, many business owners looking for the services of a Houston liquor license service in order to help them acquire a Texas liquor license are located in areas that do allow open alcohol sales.

Conversely, grocery stores in dry counties lose business as shoppers will oftentimes drive to a place where they can buy alcoholic products and then do much of their regular grocery shopping there as well. In fact, for every dollar lost in beer or wine sales, it is estimated that an additional three is lost in general sales. This also impacts the amount of taxes that can then be paid by those businesses to the local city and county.

Another disturbing issue is that dry Texas counties have more than three times as many alcohol-related traffic fatalities than those that allow alcohol sales. This is due to people having to leave the county in order to purchase and consume alcohol and then making the mistake of driving home while impaired.

Counties generally fall into one of four categories. Some are completely dry, others only sell 4 percent beer, another county allows the sale of alcoholic beverages with up to 14 percent alcohol content while other counties sell distilled spirits. Even more confusingly, many counties and sometimes even cities fit into a variety of these categories depending on where in that locale the business is located. However, if a county is dry, cities within that county do not have the option to become wet.

One example of how little the difference can be between dry areas and wet ones occurred when a Hooters restaurant opened during Plano’s mostly dry era. It ended up being just a few feet too close to a church, and alcohol sales were not allowed. However, the business simply moved its front door in order to “move” the business far enough from the church in order to legally sell alcoholic products.

Anyone who intends to sell alcoholic beverages in the great state of Texas must understand and comply with a number of important laws. The Texas Alcoholic Beverage Commission requires the placement of visible signs at any establishment where liquor will be sold and/or consumed. A Houston liquor license service can help you to obtain the proper licenses for your business.

Types of Establishments that Require Alcohol Signage

Restaurant
According to Texas statutes, a restaurant is defined as any establishment where food and beverages are prepared and sold for on-site consumption or to be taken away and consumed at another location. Restaurants are additionally classified by a Limited or General designation. Only a Restaurant-General may legally obtain a Texas liquor license to sell alcoholic beverages. To qualify as a Restaurant-General, the establishment must derive a minimum of 51% of their gross sales from the sale of prepared comestibles.

Cocktail Lounge
Any establishment that sells wine, beer or cocktails to be consumed on-site is considered a cocktail lounge. Bowling alleys, dance halls, billiard and pool parlors and live music venues are also considered to be cocktail lounges in the eyes of the law, provided that alcoholic beverages account for at least 49% of their gross revenue.

Package Store
A package store is a physically discrete establishment where liquor may be legally sold but not consumed. A package store may sell other things in addition to alcohol, but must close their doors to business during times when alcohol may not be sold. The times when liquor may not be sold in a package store include Sundays, Christmas, New Years Day and Thanksgiving Day.

Sixty-Day Signage

The TABC may require you to post a sixty-day sign of public intention prior to or during the time you apply for your Texas alcoholic beverage license. If the same location has been licensed within the past two years, you may receive a waiver of this requirement.

Additional Signs You May Be Required to Post

A mandatory sixty-day sign where the public can read your intent to sell liquor is only the first of many signs you will need to know about. Depending on the type of establishment you operate, other signs may be required in order to obtain and keep a Texas liquor license.

Health Risk Warning Sign
Alcoholic beverages sold in the United States come with a warning on the label. Since you may be serving adult beverages without such a label, you may be required to post approved warning signs about the health dangers of drinking alcohol during pregnancy.

Public Information and Complaint Sign
If you own a bar, lounge or restaurant where alcohol is served, you will be required by law to visibly post a notice along with a phone number where a person can make a formal complaint about the alcoholic beverages or service provided by your business.

Weapons Warning Sign
If less than half of your gross revenue is derived from liquor sales, you will be required to post a sign that clearly states the following: “It is unlawful to carry a weapon on the premises unless the person is licensed to carry the weapon under the concealed handgun law.” If your liquor sales account for 51% or more of your gross revenue, the weapons sign you post will be superimposed with the notation that possessing a concealed weapon within your establishment constitutes a felony in the state of Texas.

If you have questions or would like to begin the application process for your Texas liquor license, A Houston liquor license service can answer your questions and help you to obtain the licenses needed for your type of business.

Maintaining a Texas alcoholic beverage license requires strict adherence to the regulations and requirements of the Texas Alcoholic Beverage Commission, more commonly referred to as TABC. Consumers can file complaints against restaurants, bars, stores and nightclubs that fail to comply with TABC rules. Common violations include the following:

• The sale of alcoholic beverages to minors
• Engaging in illegal activities that may include drug use, gambling or prostitution
• Over-serving customers or selling alcohol to intoxicated patrons or customers
• Selling alcohol without a TABC permit
• Serving non-members with alcoholic beverages inside a private club

These violations can result in the loss of the Texas liquor license held by the individual or company. Depending on the severity and type of the offense, the individuals responsible may also face criminal prosecution for their actions.

Filing a Complaint with TABC

TABC offers residents of Texas a variety of ways to file a complaint against individuals and establishments that violate the agency’s regulations.

• The TABC mobile application allows convenient access to the complaint center on the go. Designed to work with most Android smartphones, this app makes it easy to report violations quickly for the most effective response by the agency.
• E-mail complaints can be submitted to complaints@tabc.state.tx.us for review by TABC staff members.
• Residents and guests to the state of Texas can also fill out a form for mailing, faxing or personal delivery. The form is available in Microsoft Word or Adobe PDF for optimal convenience and compatibility.

The TABC website provides address and fax number information for those interested in filing a complaint. It also allows residents and guests to identify the closest TABC office for in-person delivery.

Making an Anonymous Complaint

In some cases, Texas residents and visitors may be intimidated or frightened to make a liquor license complaint against a particular individual or business. This is especially true for those employed by companies that violate liquor license regulations or for those who live in close proximity to these businesses. The repercussions to these whistle-blowers can be serious and may include the loss of their jobs or threats against themselves or their families. The TABC allows for anonymous complaints to provide added protection for these Texas residents and advises those who wish to remain anonymous to provide only their personal email address to the agency. Personal email addresses are considered confidential under the Public Information Act and will not be released to the public upon request.

Staying on the Right Side of the Law

Texas establishments must maintain their liquor license in good standing to sell alcoholic beverages within the state. These bars, restaurants and stores can promote compliance with TABC regulations in a number of ways:

• Educating servers and cashiers regarding potential violations of the liquor license code, including over-serving customers and setting a cut-off point for patrons in the restaurant and bar environment
• Requiring identification from all customers who appear to be under the age of 30 to prevent the sale of alcohol to minors
• Maintaining a clean and legal environment throughout the store or establishment premises to avoid legal entanglements and ensure full compliance with TABC rules
• If complaints do occur, resolving them quickly and effectively is the best way to retain the right to sell alcoholic beverages in the state of Texas.

Working with a professional Houston liquor license service can provide added help for restaurants, bars, nightclubs and stores that sell alcoholic beverages in Texas. These experienced consultants can offer assistance in setting up employee training plans, establishing ground rules and navigating the liquor license permit process. By enlisting the help of these knowledgeable professionals, businesses in Houston and the surrounding communities can ensure full compliance with TABC and can avoid the stress and inconvenience of complaints against their establishments.

The ability to serve alcohol in Texas is a privilege, so every alcohol retailer must obtain the appropriate Texas liquor license. The problem is that there are city, county, state and federal licenses and permits, and you may not know which ones you need.

This entire process will be much easier for you if you do not try to take care of this yourself. A Houston liquor license service will take you by the hand from the beginning and remain with you until the process is completed. This type of business will ensure that you perform every step correctly so that this course of action takes the least amount of time possible. This service can also help you renew your Houston liquor license, so your business will always be in compliance with the law.

The Texas Alcoholic Beverage Commission

Alcohol retailers suffer serious consequences when an intoxicated patron or minor injures them self or others after leaving the establishment’s premises. The Texas Alcoholic Beverage Commission (TABC) wanted to reduce the chances that these unfortunate incidents would occur, so they created the “TABC Manager’s Awareness Program.” This program is meant to be a roadmap that helps managers voluntarily comply with the “Texas Alcoholic Beverage Code.”

The Texas Alcoholic Beverage Code

Under the Texas Alcoholic Beverage Code, servers and sellers are required to refuse to serve alcoholic beverages to obviously intoxicated adults and anyone under the age of 21. The code also requires servers and sellers to take things a step further. They must keep a minor from drinking while on the premises, and they must also keep patrons from consuming alcoholic beverages until they are intoxicated. If they are already drunk, the wait staff must stop serving these customers.

Failure to Comply with the Code

Those who fail to follow the Texas Alcoholic Beverage Code’s rules will suffer criminal penalties. A sale to a minor can possibly result in some or all of the following:

• Being charged with a class A misdemeanor
• Receiving a fine as high as $4,000
• Receiving a jail sentence of no longer than one year

A sale to an intoxicated customer may result in some or all of the following:

• Being charged with a misdemeanor
• Receiving a fine between $100 and $500
• Receiving a jail sentence of no longer than one year

A retailer who sells alcohol to a minor or someone who is inebriated will also receive administrative penalties that include a fine and the possibility of losing their sales permit.

The Manager’s Awareness Program

The two-hour Manager’s Awareness Program was designed to instruct managers on how to teach their employees to promote responsible alcohol sales. For example, managers learn about the laws related to serving alcohol to minors and intoxicated adults. They find out how they can be found liable for the injuries that these people cause once they have left the retail establishment. They also discover how to determine when an ID is fake or altered.

The Responsibilities of a Manger

A manager has many responsibilities, and the Manager’s Awareness Program illuminates each one so that retailers that sell alcohol can remain on the right side of the law. For example, managers are required to do the following:

• Ensure that employees are following the rules and regulations
• Provide continuous education for servers about responsible alcohol sales
• Create responsible policies and procedures for the service of alcoholic beverages
• Teach employees how to intervene with inebriated customers
• Assure employees that if they refuse to sell alcohol to a patron, they will never be disciplined for this action
• Ensure that everyone knows the rules for checking IDs

After attending the Manager’s Awareness Program, each individual manager will be able to create policies and guidelines for their businesses that will fit their specific needs.

Owning an establishment that sells alcoholic beverages in Texas is a serious responsibility. As an alcohol retailer, manufacturer, wholesaler or importer, you will be required to obtain or renew your licenses on the federal, state, city or county level. You may also be obligated to carry permits. These requirements might seem daunting and exhaustive to you, but there are Texas license services to help you navigate through the entire process without suffering any missteps.

The Definition of the “Dram Shop”

An enterprise that has a Texas beer license or other alcoholic beverage license has extra liability issues that other retailers and business owners do not have. This is because a business that sells alcoholic beverages is considered to be a “dram shop” and is subject to dram shop laws. A dram shop is any retail business that makes alcoholic beverages available for sale to customers for consumption on the premises. Dram shop laws give responsibility to the owners of bars and restaurants for injuries suffered by patrons who had too much to drink.

An Example

A customer enters a restaurant and has several drinks. The employees and other customers notice that this particular person is drunk. The intoxicated patron leaves the restaurant intending to drive home but is injured in a collision. In this scenario, the restaurant’s owner may be found liable for the inebriated customer’s injuries or any injuries the customer caused.

In the example stated above, the plaintiff would need to prove at least two things before the restaurant’s owners can be found liable in the incident, and they are the following:

• The wait staff continued to serve the patron alcohol even though he or she was very clearly intoxicated
• The fact that the patron was served alcohol directly led to the injuries he or she suffered or caused

The Alcoholic Beverage Code of Texas

In Texas, the Alcoholic Beverage Code states that bars and restaurants that serve alcohol to obviously intoxicated customers may be liable for injuries. Customers who are injured in accidents after leaving a bar or restaurant can sue the establishment that served them alcohol while they were drunk, but they will have to demonstrate that it was evident that they were a danger to themselves or other people when the alcohol was sold. Minors who were inebriated when they were sold alcoholic beverages are also entitled to sue a bar or restaurant for their injuries under the Texas dram shop law.

Strict Liability

In most states, people wishing to sue bar or restaurant owners under dram shop laws must only demonstrate that they were served alcohol while they were intoxicated. Then, the establishment’s owners will be subject to strict liability. Strict liability means that the owners are “absolutely liable” for any injuries suffered. In Texas, it is different because a drinking establishment’s owners cannot be found automatically liable for injuries.

The Difference in Texas

If you have a Texas alcoholic beverage license and a patron sues you for their injuries, you will only be responsible for the portion that the jury assigns to you. For example, a Texas jury can determine that you are only liable if you are more than 50 percent responsible for the customer’s injuries. This means that the jury can decide that the driver is responsible for their injuries because they made the decision to drive after consuming alcohol.

Texas courts do not take these matters lightly, and they investigate them very thoroughly in order to assign the correct amount of blame to each individual party. Both the plaintiff and the defendant have the right to retain their own attorneys and hire experts who can demonstrate that one side or the other deserves the majority of the blame.

Restaurant owners can be assured of increasing their gross profits margins when they become licensed to sell liquor. Nightclub and Bar Magazine conducted a survey in Chicago, and the researchers learned that alcoholic drinks amounted to 14.4 percent of bar and restaurant sales. If you do not have a Texas beer license or other state required liquor licenses, you may want to start the process of obtaining them through a Texas license services company to increase the profitability of your establishment.

The Gross Profits Margin

You can discover how much money you are earning from liquor sales by determining the product’s gross profits margin. The gross margin is a highly useful figure for business owners because it tells them how much profit they are earning from each particular product.

Cost of Goods and Net Sales

Learning the gross margin for liquor sales is simple. You will need to know how much it will cost to obtain the beverages you plan to sell. This figure is called the “cost of goods.” You also need to calculate “net sales.” You arrive at this figure by tallying how much your patrons spend on their beverages. If you offer any discounts, subtract this amount from prices paid, and you will have the net sales amount.

Calculating the Gross Margin

After you have the numbers described above, you can determine the gross margin. Take net sales and subtract the cost of goods. Then, you can convert the whole number into a percentage by dividing it by net sales.

An Example

With the purchase of one keg of beer for about $100, you have enough beer to offer patrons 165 12-ounce servings or 124 16-ounce servings. At $4 a glass, the amount paid for beverages will be between $490 and $660. After using the formulas described above, you will find that the profit margin is equal to 500 percent.

Increased Competition

Although liquor sales have offered bar and restaurant owners large profits in the past, industry experts are expecting these profits to slow down in the next couple of years. More people are expected to purchase their alcoholic beverages from bars and restaurants, but researchers from IBISWorld believe that this increased competition is going to decrease each individual establishment’s profit margin.

Increasing Your Gross Profits Margin

You can increase your ability to realize a higher gross profits margin for liquor sales by investing in mobile point-of-sale (POS) systems. POS systems serve two purposes. They make it easier for your servers to sell the product, and they store data you need to calculate your gross profits margin.

Servers Remain at the Table

People often want to know how POS systems allow servers to increase liquor sales. Because servers can remain at the tables at the same time that they place an order, servers can continue to engage with the customers and sell more of the product.

Detailed Information Is Collected

A POS system tells you very detailed information that can help you stage your restaurant or bar more effectively. For example, with a POS system, you will be able to determine when people purchase more wine, beer or spirits throughout the day and plan accordingly.

You Know When Inventory Is Low

With a POS system, you will know in real time when your inventory is low. Then, you can re-order the product you need directly from the system. It can even figure waste loss percentages and waste loss variance so that you can manage loss.

Texas License Services

In order to obtain a Texas liquor license, you will need to meet the states qualifications. After being approved, you will be required to follow the state’s rules and regulations, and you will have to renew the license in the future. This does not have to be difficult because Texas license services can handle the entire process so you can focus on running your business.

A restaurant or a bar that does not have a Texas beer license is leaving a great deal of money on the table. You may have neglected to obtain this essential document because the process is difficult, but Texas license services can help you secure the license and permits that you need. Before you apply for your Texas alcoholic beverage license, contact an alcoholic beverage licensing service to help you identify what licenses and permits will be needed for your business and to make the filing process easier.

Technomic’s 2013 BarTAB Report

Technomic, Inc. is a consulting firm that performs research on trends in the food industry. This Chicago-based research firm released its 2013 BarTAB Report last year in which the company outlined several interesting findings. One is the fact that more people are buying premium spirits and beers in on-premise restaurants and bars.

As the economy recovers, people continue to spend their money very carefully. However, they are purchasing more expensive beverages in current days than they have in the past. Technomic discovered this trend in 2012 when its researchers learned that the on-premise channel grew to 1.9 billion gallons of alcohol. Sales also increased by 3.5 percent to reach $97.3 billion. For 2013 and 2014, researchers predicted that the amount of alcohol that people consume would decline, but they also believed that the amount of money spent on alcoholic beverages would continue to grow.

An Explanation for Opposing Trends

Technomic’s director of research Eric Schmidt explained how volume could decrease but the amount of money spent on alcoholic beverages could increase. He states that people are taking fewer trips to bars and restaurants because they are spending conservatively. At the same time, they are interested in experiencing more sophisticated flavors, and this requires that they seek more expensive drinking choices. Some of these more expensive choices include craft beer, imported vodka and single-malt Scotch.

Technomic explained the trends another way. In the report, researchers stated that half of the sales of alcoholic beverages transpired in the on-premise channel. It also stated that one-quarter of the volume was consumed in bars and restaurants. Furthermore, Technomic researchers found that beer tops the category of the drink that is chosen most often by bar and restaurant patrons. It is also the beverage that earns the most money. In 2011, beer consumption decreased, but by 2012, this beverage started to make a comeback. However, it appears to be limited to certain types because in 2013, sales for major domestic beers continued to decline.

The Competition between Spirits, Beer and Wine

Beer has been doing very well recently, but spirits have been showing even greater improvement in bars and restaurants. In 2012, sales of spirits grew faster than any other beverage. Volume increased by 1.9 percent, and the amount sold in dollars increased by 5.6 percent. Technomic researchers believed that sales of spirits would be flat at the end of 2013. They also noted that sales of several high-end beverages are continuing to increase. Overall, wine sales are declining, except for one segment. Domestic table wine continues to be very popular, and more people are purchasing and drinking these wines on an increasing basis.

According to Technomic, whiskey categories collectively outperformed non-whiskey categorieswhen people make their way into bars and restaurants, and this appears to be due to the choices of the millennial generation. Specifically, this population is choosing between spirits and craft beers when they go out because they are seeking a particular flavor, or they are celebrating an occasion. In other words, they are not married to any particular type of drink, so they have a wide array of options open to them. As time marches on, they will continue to be the impetus of the major trends in the beverage industry.

If you have a Texas alcoholic beverage license, it is important for you to know about changes to the Texas’ mixed beverage tax laws. Now that House Bill 3572 is in full effect, you will be paying a much lower mixed beverage gross receipts tax rate. Before January 1 of this year, the rate was 14 percent. Now, it is only 6.7 percent.

The Mixed Beverage Sales Tax

Although the mixed beverage gross receipts tax rate has declined, the new legislation adds another tax: the 8.25 percent mixed beverage sales tax. This tax applies to mixed beverages, including the wine, ale, beer and distilled spirits that you sell, prepare or serve in your establishment. It also includes any non-alcoholic beverages that you mix with alcoholic beverages that will be consumed at your place of business. Lastly, it applies to the ice that is used to make alcoholic beverages that customers drink on the premises.

The Mixed Beverage Sales Tax Surety Bond

Before this new law went into effect, proprietors with a Texas beer license only had to post a mixed beverage gross receipts tax surety bond in the amount of $7,500. Currently, you must continue to post the aforementioned bond, but you are required to post the mixed beverage sales tax surety bond as well.

The exact amount of these bonds is going to depend on your individual tax filing. After this initial number has been calculated, officials will figure the final amount by taking your personal credit score and other financial considerations into account.

Passing the Cost onto Your Customers

You will not be permitted to pass the mixed beverage gross receipts tax onto your customers. However, you will be able to add the mixed beverage sales tax to your customers’ bills. You can do this legally in only two ways:

1. Add a line item to the customer’s bill that specifically outlines this tax.
2. Include the mixed beverage sales tax in the beverage’s price.

Informing Your Customers in Writing

If you select option number two, you must let your customers know in writing that the sales price includes the mixed beverage sales tax. You can do this by printing this information on invoices, bills or receipts in the following manner:

1. State that the mixed beverage sales tax was included in the beverage’s price.
2. List the amount of the mixed beverage sales tax for each beverage.
3. List the combined amount of mixed beverage sales taxes that were charged for each beverage.
4. List the combined amount of mixed beverage sales taxes and ordinary sales taxes charged for each beverage.

When Are These Taxes Due?

When you owe these taxes will depend on how much you owe. For example, if the calculated amount comes to more than $500 in one month or more than $1,500 in one quarter, then you owe these taxes on a monthly basis. If the amount is less than $500 a month or less than $1,500 a quarter, you will need to pay these taxes quarterly.

How to File Mixed Beverage Sales Taxes

How you file your mixed beverage sales taxes will be dependent upon the amount you owed during the last fiscal year. If at that time you paid taxes that amounted to less than $10,000, you can file and pay your taxes in any manner you see fit. You can file electronically or by paper if you paid between $10,000 and $49,999 in taxes. If your tax bill amounted to more than $50,000, you must file electronically.

If you need further help, an official with a Texas license services company will be able to assist you.