Bill Text: TX HB3572 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
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 |
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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 [ |
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(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 [ |
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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 [ |
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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 [ |
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(7) [ |
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[ |
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Chapter 191; and | ||
(8) [ |
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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 [ |
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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. | ||
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SECTION 12. The heading to Subchapter B, Chapter 183, Tax | ||
Code, is amended to read as follows: | ||
SUBCHAPTER B. WHOLESALE ALCOHOLIC BEVERAGE [ |
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SECTION 13. Section 183.021, Tax Code, is amended to read as | ||
follows: | ||
Sec. 183.021. TAX IMPOSED ON WHOLESALE ALCOHOLIC BEVERAGE | ||
SALE [ |
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imposed on the sale by a wholesaler, distributor, or package store | ||
local distributor to a permittee of an alcoholic beverage [ |
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(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. [ |
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[ |
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distributor, or package store local distributor shall [ |
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ticket, or other receipt to a permittee [ |
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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 [ |
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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 [ |
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[ |
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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 [ |
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appropriate amount of tax collected to [ |
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[ |
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(b) The return under this section shall be in a form | ||
prescribed by the commission [ |
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[ |
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SECTION 16. Section 183.023(b), Tax Code, is amended to | ||
read as follows: | ||
(b) The commission [ |
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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 [ |
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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 | ||
[ |
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after the day the tax or report is due, the wholesaler, distributor, | ||
or package store local distributor [ |
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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 [ |
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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 | ||
[ |
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due from the wholesaler, distributor, or package store local | ||
distributor [ |
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report. | ||
SECTION 18. Section 183.051, Tax Code, as effective | ||
September 1, 2013, is amended to read as follows: | ||
Sec. 183.051. [ |
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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 [ |
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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 | ||
[ |
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(b) The total of bonds, certificates of deposit, letters of | ||
credit, or other security determined to be sufficient by the | ||
commission [ |
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store local distributor [ |
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this chapter shall be in an amount that the commission | ||
[ |
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interests of the state. The commission [ |
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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 [ |
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average monthly tax liability. | ||
SECTION 20. Section 183.054, Tax Code, is amended to read as | ||
follows: | ||
Sec. 183.054. AUDIT FREQUENCY. The commission | ||
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of [ |
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the frequency of the audit the commission [ |
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consider the following factors: | ||
(1) reasonable and prudent accounting standards; | ||
(2) the audit history of the wholesaler, distributor, | ||
or package store local distributor [ |
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(3) the effect on state revenues; and | ||
(4) other factors the commission [ |
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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 | ||
[ |
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sales price [ |
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(1) during the reporting period in which the alcoholic | ||
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store local distributor [ |
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portion will remain unpaid; | ||
(2) the wholesaler, distributor, or package store | ||
local distributor [ |
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sales price [ |
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package store local distributor's [ |
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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 [ |
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the portion during the reporting period in which payment is made. | ||
(c) A wholesaler, distributor, or package store local | ||
distributor [ |
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taxes paid on the portion of the sales price [ |
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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. |