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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration, collection, and enforcement of |
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taxes on the wholesale and retail sale of certain alcoholic |
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beverages; imposing a tax on sales of alcoholic beverages at the |
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wholesale level. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.05, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 12.05. SALES BY CERTAIN BREWERS. (a) The holder of a |
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brewer's permit whose annual production of ale in this state does |
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not exceed, together with the annual production of beer by the |
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holder of a manufacturer's license acting under the authority of |
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Section 62.12 of this code at the same premises, a total of 75,000 |
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barrels, may sell ale produced under the permit to those persons to |
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whom the holder of a general class B wholesaler's permit may sell |
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malt liquor under Section 20.01(3) of this code. |
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(b) With regard to [such] a sale described by Subsection |
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(a), the brewer has the same authority and is subject to the same |
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requirements, including the requirement to collect and remit taxes |
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under Chapter 183, Tax Code, that apply to a sale made by the holder |
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of a general class B wholesaler's permit. |
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SECTION 2. Section 62.12(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) A manufacturer's licensee whose annual production of |
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beer in this state does not exceed 75,000 barrels may sell beer |
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produced under the license to those permittees, licensees, and |
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persons to whom a general distributor's licensee may sell beer |
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under Section 64.01(2) of this code. With regard to such a sale, |
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the manufacturer has the same authority and is subject to the same |
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requirements, including the requirement to collect and remit taxes |
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under Chapter 183, Tax Code, as apply to a sale made by a general |
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distributor's licensee. |
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SECTION 3. Subchapter A, Chapter 151, Tax Code, is amended |
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by adding Section 151.0027 to read as follows: |
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Sec. 151.0027. "ALCOHOLIC BEVERAGE." "Alcoholic beverage" |
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has the meaning assigned by Section 1.04, Alcoholic Beverage Code. |
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SECTION 4. Section 151.054(a), Tax Code, is amended to read |
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as follows: |
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(a) All [Except as provided by Subsection (d) of this
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section, all] gross receipts of a seller are presumed to have been |
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subject to the sales tax unless a properly completed resale or |
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exemption certificate is accepted by the seller. |
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SECTION 5. Section 151.151, Tax Code, is amended to read as |
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follows: |
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Sec. 151.151. RESALE CERTIFICATE. (a) In this section, |
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"distributor," "package store local distributor," "permittee," and |
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"wholesaler" have the meanings assigned by Section 183.001(b). |
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(b) A purchaser may give a resale certificate for the |
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acquisition of a taxable item if the purchaser intends to sell, |
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lease, or rent it in the regular course of business or transfer it |
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as an integral part of a taxable service performed in the regular |
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course of business. |
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(c) A wholesaler, distributor, or package store local |
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distributor may not accept a resale certificate in relation to a |
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sale of an alcoholic beverage made to a permittee. |
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SECTION 6. Section 151.153, Tax Code, is amended to read as |
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follows: |
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Sec. 151.153. RESALE CERTIFICATE: COMMINGLED FUNGIBLE |
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GOODS. (a) Except as provided by Subsection (b), if [If] a purchaser |
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gives a resale certificate with respect to the purchase of fungible |
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goods and then commingles the goods with other similar fungible |
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goods for which a resale certificate was not given, sales from the |
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mass of commingled fungible goods are deemed to be sales of goods |
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covered by the resale certificate until the quantity of goods |
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covered by the certificate equals the quantity of goods sold. |
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(b) If a purchaser gives a resale certificate with respect |
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to the purchase of fungible goods and then commingles the goods with |
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other similar fungible goods for which acceptance of a resale |
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certificate is not allowed under Section 151.151, sales from the |
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mass of commingled fungible goods are deemed to be sales of goods |
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subject to taxation under this chapter. |
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SECTION 7. Section 151.308, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) The following are exempted from the taxes imposed by |
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this chapter: |
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(1) oil as taxed by Chapter 202; |
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(2) sulphur as taxed by Chapter 203; |
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(3) motor fuels and special fuels as defined, taxed, |
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or exempted by Chapter 162; |
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(4) cement as taxed by Chapter 181; |
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(5) motor vehicles, trailers, and semitrailers as |
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defined, taxed, or exempted by Chapter 152, other than a mobile |
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office or an oilfield portable unit, as those terms are defined by |
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Section 152.001; |
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(6) sales of alcoholic beverages by a wholesaler, |
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distributor, or package store local distributor to a permittee |
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subject to taxation under [mixed beverages, ice, or nonalcoholic
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beverages and the preparation or service of these items if the
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receipts are taxable by] Chapter 183; |
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(7) [alcoholic beverages when sold to the holder of a
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private club registration permit or to the agent or employee of the
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holder of a private club registration permit if the holder or agent
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or employee is acting as the agent of the members of the club and if
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the beverages are to be served on the premises of the club;
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[(8)] oil well service as taxed by Subchapter E, |
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Chapter 191; and |
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(8) [(9)] insurance premiums subject to gross |
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premiums taxes. |
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(a-1) In this section, "distributor," "package store local |
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distributor," "permittee," and "wholesaler" have the meanings |
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assigned by Section 183.001(b). |
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SECTION 8. Section 151.462, Tax Code, is amended by adding |
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Subsection (d) to read as follows: |
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(d) The comptroller may modify a report requirement |
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prescribed by this section as necessary to ensure the accurate |
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remittance of taxes imposed under this chapter and Chapter 183. |
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SECTION 9. The heading to Subtitle G, Title 2, Tax Code, is |
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amended to read as follows: |
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SUBTITLE G. GROSS RECEIPTS AND WHOLESALE SALES TAXES |
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SECTION 10. The heading to Chapter 183, Tax Code, is amended |
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to read as follows: |
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CHAPTER 183. WHOLESALE ALCOHOLIC BEVERAGE [MIXED BEVERAGE] TAX |
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SECTION 11. Section 183.001(b), Tax Code, is amended to |
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read as follows: |
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(b) In this chapter: |
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(1) "Commission" means the Texas Alcoholic Beverage |
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Commission. |
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(2) "Distributor" means a person required to hold: |
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(A) a general distributor's license under |
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Chapter 64, Alcoholic Beverage Code; |
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(B) a local distributor's license under Chapter |
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65, Alcoholic Beverage Code; or |
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(C) a branch distributor's license |
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under Chapter 66, Alcoholic Beverage Code. |
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(3) "Package store local distributor" means a person |
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required to hold: |
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(A) a package store permit under Chapter 22, |
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Alcoholic Beverage Code; and |
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(B) a local distributor's permit under Chapter |
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23, Alcoholic Beverage Code. |
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(4) "Permittee" means a mixed beverage permittee, a |
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private club registration permittee, a private club exemption |
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certificate permittee, a private club late hours permittee, a daily |
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temporary private club permittee, a private club registration |
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permittee holding a food and beverage certificate, a daily |
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temporary mixed beverage permittee, a mixed beverage late hours |
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permittee, a mixed beverage permittee holding a food and beverage |
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certificate, or a caterer permittee. |
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(5) "Sales price" has the meaning assigned by Section |
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151.007, as applicable. |
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(6) "Wholesaler" means a person required to hold: |
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(A) a wholesaler's permit under Chapter 19, |
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Alcoholic Beverage Code; |
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(B) a general Class B wholesaler's permit under |
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Chapter 20, Alcoholic Beverage Code; or |
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(C) a local Class B wholesaler's permit under |
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Chapter 21, Alcoholic Beverage Code. |
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[(2)
"Business day" means the period beginning at 3
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a.m. one day and ending at 3 a.m. the next day.] |
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SECTION 12. The heading to Subchapter B, Chapter 183, Tax |
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Code, is amended to read as follows: |
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SUBCHAPTER B. WHOLESALE ALCOHOLIC BEVERAGE [MIXED BEVERAGE] TAX |
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SECTION 13. Section 183.021, Tax Code, is amended to read as |
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follows: |
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Sec. 183.021. TAX IMPOSED ON WHOLESALE ALCOHOLIC BEVERAGE |
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SALE [MIXED BEVERAGES]. (a) A tax [at the rate of 14 percent] is |
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imposed on the sale by a wholesaler, distributor, or package store |
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local distributor to a permittee of an alcoholic beverage [gross
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receipts of a permittee received from the sale, preparation, or
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service of mixed beverages or from the sale, preparation, or
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service of ice or nonalcoholic beverages that are sold, prepared,
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or served for the purpose of being mixed with an alcoholic beverage
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and consumed on the premises of the permittee]. |
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(b) The rate of the tax is 14 percent of the sales price of |
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the alcoholic beverage. |
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SECTION 14. Section 183.0212, Tax Code, is amended to read |
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as follows: |
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Sec. 183.0212. [SEPARATE] DISCLOSURE OF TAX REQUIRED |
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[ALLOWED]. (a) A [For informational purposes only, a] wholesaler, |
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distributor, or package store local distributor shall [permittee
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may] provide that each sales invoice, billing, service check, |
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ticket, or other receipt to a permittee [customer] for the purchase |
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of an item subject to taxation under this chapter include a separate |
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statement disclosing the amount of tax to be paid by the wholesaler, |
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distributor, or package store local distributor [permittee] under |
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this chapter in relation to that item. |
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(b) The separate statement must clearly disclose the amount |
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of tax payable by the wholesaler, distributor, or package store |
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local distributor [permittee]. |
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[(c)
The tax may not be separately charged to or paid by the
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customer.] |
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SECTION 15. Sections 183.022(a) and (b), Tax Code, are |
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amended to read as follows: |
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(a) A wholesaler, distributor, or package store local |
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distributor [permittee] shall file a tax return and remit the |
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appropriate amount of tax collected to [with] the commission |
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[comptroller] not later than the 20th day of each month. |
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(b) The return under this section shall be in a form |
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prescribed by the commission [comptroller] and shall include [a
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statement of the total gross taxable receipts during the preceding
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month and] any [other] information required by the commission |
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[comptroller]. |
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SECTION 16. Section 183.023(b), Tax Code, is amended to |
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read as follows: |
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(b) The commission [comptroller] shall deposit the revenue |
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received under this section in the general revenue fund. |
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SECTION 17. Sections 183.024(a) and (d), Tax Code, are |
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amended to read as follows: |
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(a) A wholesaler, distributor, or package store local |
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distributor [permittee] who fails to file a report as required by |
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this chapter or who fails to pay a tax imposed by this chapter when |
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due shall pay five percent of the amount due as a penalty, and if the |
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wholesaler, distributor, or package store local distributor |
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[permittee] fails to file the report or pay the tax within 30 days |
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after the day the tax or report is due, the wholesaler, distributor, |
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or package store local distributor [permittee] shall pay an |
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additional five percent of the amount due as an additional penalty. |
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(d) In addition to any other penalty authorized by this |
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section, a wholesaler, distributor, or package store local |
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distributor [permittee] who fails to file a report as required by |
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this chapter shall pay a penalty of $50. The penalty provided by |
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this subsection is assessed without regard to whether the |
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wholesaler, distributor, or package store local distributor |
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[permittee] subsequently files the report or whether any taxes were |
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due from the wholesaler, distributor, or package store local |
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distributor [permittee] for the reporting period under the required |
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report. |
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SECTION 18. Section 183.051, Tax Code, as effective |
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September 1, 2013, is amended to read as follows: |
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Sec. 183.051. [MIXED BEVERAGE] TAX CLEARANCE FUND. (a) Not |
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later than the last day of the month following a calendar quarter, |
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the comptroller shall calculate the total amount of taxes received |
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during the quarter from wholesalers, distributors, or package store |
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local distributors for sales to permittees outside an incorporated |
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municipality within each county and the total amount received from |
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wholesalers, distributors, or package store local distributors for |
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sales to permittees within each incorporated municipality in each |
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county. |
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(b) The comptroller shall issue to each county described in |
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Subsection (a) a warrant drawn on the general revenue fund in an |
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amount appropriated by the legislature that may not be less than |
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10.7143 percent of receipts from sales to permittees within the |
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county during the quarter and shall issue to each incorporated |
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municipality described in Subsection (a) a warrant drawn on that |
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fund in an amount appropriated by the legislature that may not be |
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less than 10.7143 percent of receipts from sales to permittees |
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within the incorporated municipality during the quarter. |
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SECTION 19. Section 183.053, Tax Code, is amended to read as |
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follows: |
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Sec. 183.053. SECURITY REQUIREMENT. (a) A wholesaler, |
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distributor, or package store local distributor [permittee] |
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subject to the tax imposed by this chapter must comply with the |
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security requirements imposed by Chapter 151 except that a |
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wholesaler, distributor, or package store local distributor |
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[permittee] is not required to comply with Section 151.253(b). |
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(b) The total of bonds, certificates of deposit, letters of |
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credit, or other security determined to be sufficient by the |
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commission [comptroller] of a wholesaler, distributor, or package |
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store local distributor [permittee] subject to the tax imposed by |
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this chapter shall be in an amount that the commission |
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[comptroller] determines to be sufficient to protect the fiscal |
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interests of the state. The commission [comptroller] may not set |
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the amount of security at less than $1,000 or more than the greater |
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of $100,000 or four times the amount of the wholesaler's, |
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distributor's, or package store local distributor's [permittee's] |
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average monthly tax liability. |
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SECTION 20. Section 183.054, Tax Code, is amended to read as |
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follows: |
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Sec. 183.054. AUDIT FREQUENCY. The commission |
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[comptroller] shall have the discretion to determine the frequency |
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of [mixed beverage tax] audits under this chapter. In determining |
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the frequency of the audit the commission [comptroller] may |
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consider the following factors: |
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(1) reasonable and prudent accounting standards; |
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(2) the audit history of the wholesaler, distributor, |
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or package store local distributor [permittee]; |
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(3) the effect on state revenues; and |
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(4) other factors the commission [comptroller] deems |
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appropriate. |
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SECTION 21. Section 183.055, Tax Code is amended to read as |
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follows: |
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Sec. 183.055. CREDITS AND REFUNDS FOR BAD DEBTS. (a) A |
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wholesaler, distributor, or package store local distributor |
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[permittee] may withhold the payment of the tax on a portion of the |
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sales price [gross receipts] that remains unpaid by a purchaser if: |
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(1) during the reporting period in which the alcoholic |
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[mixed] beverage is sold, the wholesaler, distributor, or package |
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store local distributor [permittee] determines that the unpaid |
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portion will remain unpaid; |
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(2) the wholesaler, distributor, or package store |
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local distributor [permittee] enters the unpaid portion of the |
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sales price [gross receipts] in the wholesaler's, distributor's, or |
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package store local distributor's [permittee's] books as a bad |
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debt; and |
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(3) the bad debt is claimed as a deduction for federal |
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tax purposes during the same or a subsequent reporting period. |
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(b) If the portion of a debt determined to be bad under |
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Subsection (a) is paid, the wholesaler, distributor, or package |
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store local distributor [permittee] shall report and pay the tax on |
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the portion during the reporting period in which payment is made. |
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(c) A wholesaler, distributor, or package store local |
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distributor [permittee] is entitled to credit or reimbursement for |
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taxes paid on the portion of the sales price [gross receipts] |
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determined to be worthless and actually charged off for federal |
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income tax purposes. |
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SECTION 22. The following provisions of the Tax Code are |
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repealed: |
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(1) Section 151.054(d); |
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(2) Section 151.465; |
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(3) Section 151.466; |
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(4) Section 183.022(c); and |
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(5) Section 183.052. |
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SECTION 23. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 24. This Act takes effect January 1, 2014. |