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

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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.

Spectrum: Moderate Partisan Bill (Republican 30-9)

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

Download: Texas-2013-HB3572-Introduced.html
 
 
  By: Hilderbran H.B. No. 3572
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration, collection, and enforcement of
  taxes on the wholesale and retail sale of certain alcoholic
  beverages; imposing a tax on sales of alcoholic beverages at the
  wholesale level.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.05, Alcoholic Beverage Code, is
  amended to read as follows:
         Sec. 12.05.  SALES BY CERTAIN BREWERS. (a) The holder of a
  brewer's permit whose annual production of ale in this state does
  not exceed, together with the annual production of beer by the
  holder of a manufacturer's license acting under the authority of
  Section 62.12 of this code at the same premises, a total of 75,000
  barrels, may sell ale produced under the permit to those persons to
  whom the holder of a general class B wholesaler's permit may sell
  malt liquor under Section 20.01(3) of this code.
         (b)  With regard to [such] a sale described by Subsection
  (a), the brewer has the same authority and is subject to the same
  requirements, including the requirement to collect and remit taxes
  under Chapter 183, Tax Code, that apply to a sale made by the holder
  of a general class B wholesaler's permit.
         SECTION 2.  Section 62.12(a), Alcoholic Beverage Code, is
  amended to read as follows:
         (a)  A manufacturer's licensee whose annual production of
  beer in this state does not exceed 75,000 barrels may sell beer
  produced under the license to those permittees, licensees, and
  persons to whom a general distributor's licensee may sell beer
  under Section 64.01(2) of this code. With regard to such a sale,
  the manufacturer has the same authority and is subject to the same
  requirements, including the requirement to collect and remit taxes
  under Chapter 183, Tax Code, as apply to a sale made by a general
  distributor's licensee.
         SECTION 3.  Subchapter A, Chapter 151, Tax Code, is amended
  by adding Section 151.0027 to read as follows:
         Sec. 151.0027.  "ALCOHOLIC BEVERAGE." "Alcoholic beverage"
  has the meaning assigned by Section 1.04, Alcoholic Beverage Code.
         SECTION 4.  Section 151.054(a), Tax Code, is amended to read
  as follows:
         (a)  All [Except as provided by Subsection (d) of this
  section, all] gross receipts of a seller are presumed to have been
  subject to the sales tax unless a properly completed resale or
  exemption certificate is accepted by the seller.
         SECTION 5.  Section 151.151, Tax Code, is amended to read as
  follows:
         Sec. 151.151.  RESALE CERTIFICATE. (a) In this section,
  "distributor," "package store local distributor," "permittee," and
  "wholesaler" have the meanings assigned by Section 183.001(b).
         (b)  A purchaser may give a resale certificate for the
  acquisition of a taxable item if the purchaser intends to sell,
  lease, or rent it in the regular course of business or transfer it
  as an integral part of a taxable service performed in the regular
  course of business.
         (c)  A wholesaler, distributor, or package store local
  distributor may not accept a resale certificate in relation to a
  sale of an alcoholic beverage made to a permittee.
         SECTION 6.  Section 151.153, Tax Code, is amended to read as
  follows:
         Sec. 151.153.  RESALE CERTIFICATE: COMMINGLED FUNGIBLE
  GOODS. (a) Except as provided by Subsection (b), if [If] a purchaser
  gives a resale certificate with respect to the purchase of fungible
  goods and then commingles the goods with other similar fungible
  goods for which a resale certificate was not given, sales from the
  mass of commingled fungible goods are deemed to be sales of goods
  covered by the resale certificate until the quantity of goods
  covered by the certificate equals the quantity of goods sold.
         (b)  If a purchaser gives a resale certificate with respect
  to the purchase of fungible goods and then commingles the goods with
  other similar fungible goods for which acceptance of a resale
  certificate is not allowed under Section 151.151, sales from the
  mass of commingled fungible goods are deemed to be sales of goods
  subject to taxation under this chapter.
         SECTION 7.  Section 151.308, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) 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)  sales of alcoholic beverages by a wholesaler,
  distributor, or package store local distributor to a permittee
  subject to taxation under [mixed beverages, ice, or nonalcoholic
  beverages and the preparation or service of these items if the
  receipts are taxable by] 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
               (8) [(9)]  insurance premiums subject to gross
  premiums taxes.
         (a-1)  In this section, "distributor," "package store local
  distributor," "permittee," and "wholesaler" have the meanings
  assigned by Section 183.001(b).
         SECTION 8.  Section 151.462, Tax Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  The comptroller may modify a report requirement
  prescribed by this section as necessary to ensure the accurate
  remittance of taxes imposed under this chapter and Chapter 183.
         SECTION 9.  The heading to Subtitle G, Title 2, Tax Code, is
  amended to read as follows:
  SUBTITLE G. GROSS RECEIPTS AND WHOLESALE SALES TAXES
         SECTION 10.  The heading to Chapter 183, Tax Code, is amended
  to read as follows:
  CHAPTER 183. WHOLESALE ALCOHOLIC BEVERAGE [MIXED BEVERAGE] TAX
         SECTION 11.  Section 183.001(b), Tax Code, is amended to
  read as follows:
         (b)  In this chapter:
               (1)  "Commission" means the Texas Alcoholic Beverage
  Commission.
               (2)  "Distributor" means a person required to hold:
                     (A)  a general distributor's license under
  Chapter 64, Alcoholic Beverage Code;
                     (B)  a local distributor's license under Chapter
  65, Alcoholic Beverage Code; or
                     (C)  a branch distributor's license
  under  Chapter 66, Alcoholic Beverage Code.
               (3)  "Package store local distributor" means a person
  required to hold:
                     (A)  a package store permit under Chapter 22,
  Alcoholic Beverage Code; and
                     (B)  a local distributor's permit under Chapter
  23, Alcoholic Beverage Code.
               (4)  "Permittee" means a mixed beverage permittee, a
  private club registration permittee, a private club exemption
  certificate permittee, a private club late hours permittee, a daily
  temporary private club permittee, a private club registration
  permittee holding a food and beverage certificate, a daily
  temporary mixed beverage permittee, a mixed beverage late hours
  permittee, a mixed beverage permittee holding a food and beverage
  certificate, or a caterer permittee.
               (5)  "Sales price" has the meaning assigned by Section
  151.007, as applicable.
               (6)  "Wholesaler" means a person required to hold:
                     (A)  a wholesaler's permit under Chapter 19,
  Alcoholic Beverage Code;
                     (B)  a general Class B wholesaler's permit under
  Chapter 20, Alcoholic Beverage Code; or
                     (C)  a local Class B wholesaler's permit  under
  Chapter 21, Alcoholic Beverage Code.
               [(2)     "Business day" means the period beginning at 3
  a.m. one day and ending at 3 a.m. the next day.]
         SECTION 12.  The heading to Subchapter B, Chapter 183, Tax
  Code, is amended to read as follows:
  SUBCHAPTER B. WHOLESALE ALCOHOLIC BEVERAGE [MIXED BEVERAGE] TAX
         SECTION 13.  Section 183.021, Tax Code, is amended to read as
  follows:
         Sec. 183.021.  TAX IMPOSED ON WHOLESALE ALCOHOLIC BEVERAGE
  SALE [MIXED BEVERAGES]. (a) A tax [at the rate of 14 percent] is
  imposed on the sale by a wholesaler, distributor, or package store
  local distributor to a permittee of an alcoholic beverage [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].
         (b)  The rate of the tax is 14 percent of the sales price of
  the alcoholic beverage.
         SECTION 14.  Section 183.0212, Tax Code, is amended to read
  as follows:
         Sec. 183.0212.  [SEPARATE] DISCLOSURE OF TAX REQUIRED
  [ALLOWED]. (a)  A [For informational purposes only, a] wholesaler,
  distributor, or package store local distributor shall [permittee
  may] provide that each sales invoice, billing, service check,
  ticket, or other receipt to a permittee [customer] for the purchase
  of an item subject to taxation under this chapter include a separate
  statement disclosing the amount of tax to be paid by the wholesaler,
  distributor, or package store local distributor [permittee] under
  this chapter in relation to that item.
         (b)  The separate statement must clearly disclose the amount
  of tax payable by the wholesaler, distributor, or package store
  local distributor [permittee].
         [(c)     The tax may not be separately charged to or paid by the
  customer.]
         SECTION 15.  Sections 183.022(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  A wholesaler, distributor, or package store local
  distributor [permittee] shall file a tax return and remit the
  appropriate amount of tax collected to [with] the commission
  [comptroller] not later than the 20th day of each month.
         (b)  The return under this section shall be in a form
  prescribed by the commission [comptroller] and shall include [a
  statement of the total gross taxable receipts during the preceding
  month and] any [other] information required by the commission
  [comptroller].
         SECTION 16.  Section 183.023(b), Tax Code, is amended to
  read as follows:
         (b)  The commission [comptroller] shall deposit the revenue
  received under this section in the general revenue fund.
         SECTION 17.  Sections 183.024(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  A wholesaler, distributor, or package store local
  distributor [permittee] who fails to file a report as required by
  this chapter or who fails to pay a tax imposed by this chapter when
  due shall pay five percent of the amount due as a penalty, and if the
  wholesaler, distributor, or package store local distributor
  [permittee] fails to file the report or pay the tax within 30 days
  after the day the tax or report is due, the wholesaler, distributor,
  or package store local distributor [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 wholesaler, distributor, or package store local
  distributor [permittee] who fails to file a report as required by
  this chapter shall pay a penalty of $50.  The penalty provided by
  this subsection is assessed without regard to whether the
  wholesaler, distributor, or package store local distributor
  [permittee] subsequently files the report or whether any taxes were
  due from the wholesaler, distributor, or package store local
  distributor [permittee] for the reporting period under the required
  report.
         SECTION 18.  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
  during the quarter from wholesalers, distributors, or package store
  local distributors for sales to permittees outside an incorporated
  municipality within each county and the total amount received from
  wholesalers, distributors, or package store local distributors for
  sales to 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 receipts from sales to 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 receipts from sales to permittees
  within the incorporated municipality during the quarter.
         SECTION 19.  Section 183.053, Tax Code, is amended to read as
  follows:
         Sec. 183.053.  SECURITY REQUIREMENT. (a) A wholesaler,
  distributor, or package store local distributor [permittee]
  subject to the tax imposed by this chapter must comply with the
  security requirements imposed by Chapter 151 except that a
  wholesaler, distributor, or package store local distributor
  [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
  commission [comptroller] of a wholesaler, distributor, or package
  store local distributor [permittee] subject to the tax imposed by
  this chapter shall be in an amount that the commission
  [comptroller] determines to be sufficient to protect the fiscal
  interests of the state.  The commission [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 wholesaler's,
  distributor's, or package store local distributor's [permittee's]
  average monthly tax liability.
         SECTION 20.  Section 183.054, Tax Code, is amended to read as
  follows:
         Sec. 183.054.  AUDIT FREQUENCY. The commission
  [comptroller] shall have the discretion to determine the frequency
  of [mixed beverage tax] audits under this chapter. In determining
  the frequency of the audit the commission [comptroller] may
  consider the following factors:
               (1)  reasonable and prudent accounting standards;
               (2)  the audit history of the wholesaler, distributor,
  or package store local distributor [permittee];
               (3)  the effect on state revenues; and
               (4)  other factors the commission [comptroller] deems
  appropriate.
         SECTION 21.  Section 183.055, Tax Code is amended to read as
  follows:
         Sec. 183.055.  CREDITS AND REFUNDS FOR BAD DEBTS. (a) A
  wholesaler, distributor, or package store local distributor
  [permittee] may withhold the payment of the tax on a portion of the
  sales price [gross receipts] that remains unpaid by a purchaser if:
               (1)  during the reporting period in which the alcoholic
  [mixed] beverage is sold, the wholesaler, distributor, or package
  store local distributor [permittee] determines that the unpaid
  portion will remain unpaid;
               (2)  the wholesaler, distributor, or package store
  local distributor [permittee] enters the unpaid portion of the
  sales price [gross receipts] in the wholesaler's, distributor's, or
  package store local distributor's [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 wholesaler, distributor, or package
  store local distributor [permittee] shall report and pay the tax on
  the portion during the reporting period in which payment is made.
         (c)  A wholesaler, distributor, or package store local
  distributor [permittee] is entitled to credit or reimbursement for
  taxes paid on the portion of the sales price [gross receipts]
  determined to be worthless and actually charged off for federal
  income tax purposes.
         SECTION 22.  The following provisions of the Tax Code are
  repealed:
               (1)  Section 151.054(d);
               (2)  Section 151.465;
               (3)  Section 151.466;
               (4)  Section 183.022(c); and
               (5)  Section 183.052.
         SECTION 23.  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 24.  This Act takes effect January 1, 2014.
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