- In Texas, sales of alcoholic beverages are subject to two types of taxes: Mixed Beverage Gross Receipts Tax and Mixed Beverage Sales Tax.
- The Mixed Beverage Gross Receipts Tax is a 6.7% tax imposed on the gross receipts of a permittee from the sale, preparation, or service of mixed beverages or nonalcoholic beverages for mixing with alcoholic beverages consumed on the premises.
- The term “mixed beverage” includes liquor, beer, and wine.
- The 6.7% tax is computed as a percentage of the total amount charged to the customer and must be paid separately by the permittee to the Comptroller.
- The gross receipts on which the tax is computed do not include other taxes such as sales tax or mixed beverage sales tax.
- The Mixed Beverage Sales Tax is an 8.25% tax imposed on each mixed beverage and nonalcoholic beverage sold, prepared, or served by a permittee for mixing with alcoholic beverages consumed on the premises.
- Sales subject to the Mixed Beverage Sales Tax are exempt from the normal sales tax.
- Mixed beverage audits can be frustrating and penalizing for taxpayers.
- Errors in one tax often accompany errors in the other, and taxpayers may feel doubly penalized.
- The Comptroller’s audit methodology may oversimplify the taxpayer’s business and fail to account for realities such as inconsistent pour sizes, theft and spillage, and seasonal fluctuations in prices.
Source: taxconnections.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
