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:
- Add a line item to the customer’s bill that specifically outlines this tax.
- 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:
- State that the mixed beverage sales tax was included in the beverage’s price.
- List the amount of the mixed beverage sales tax for each beverage.
- List the combined amount of mixed beverage sales taxes that were charged for each beverage.
- 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.