Bill Text: TX HB3572 | 2013-2014 | 83rd Legislature | Enrolled


Bill Title: 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.

Status: (Passed) 2013-06-14 - Effective on 1/1/14 [HB3572 Detail]

Download: Texas-2013-HB3572-Enrolled.html
 
 
  H.B. No. 3572
 
 
 
 
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 6.7 [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.  Sections 183.0212(a) and (b), Tax Code, are
  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:
               (1)  a separate statement disclosing the amount of tax
  to be paid by the permittee under this subchapter [chapter] in
  relation to that item; or
               (2)  a statement of the mixed beverage taxes,
  consisting of the combined amount of the tax to be paid by the
  permittee under this subchapter in relation to that item and the
  amount of tax imposed under Subchapter B-1 on that item.
         (b)  A [The separate] statement under Subsection (a)(1) must
  clearly disclose the amount of tax payable by the permittee.
         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.  DISCLOSURE OF TAX. A permittee may provide
  that a 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:
               (1)  a statement that mixed beverage sales tax is
  included in the sales price;
               (2)  a separate statement of the amount of tax imposed
  under this subchapter on that item;
               (3)  a statement of the mixed beverage taxes,
  consisting of the combined amount of the tax to be paid by the
  permittee under Subchapter B in relation to that item and the amount
  of tax imposed under this subchapter on that item; or
               (4)  a statement of the combined amount of taxes
  imposed under this subchapter and Chapter 151 on all items listed on
  the invoice, billing, service check, ticket, or other receipt.
         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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3572 was passed by the House on May 3,
  2013, by the following vote:  Yeas 143, Nays 2, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 3572 on May 23, 2013, 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. 3572 on May 25, 2013, by the following vote:  Yeas 145,
  Nays 0, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3572 was passed by the Senate, with
  amendments, on May 21, 2013, 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.
  3572 on May 26, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor       
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