taxes

Mixed Beverage Sales Tax

Who is responsible for this tax?

Mixed beverage permittees in Texas must pay a mixed beverage sales tax on each mixed beverage (distilled spirits, beer, ale and wine) they sell, prepare or serve. Mixed beverage sales tax is also due on each nonalcoholic beverage and on ice sold, prepared or served to be mixed with an alcoholic beverage and consumed on the premises of the mixed beverage permittee. The mixed beverage sales tax is in addition to mixed beverage gross receipts tax imposed on the mixed beverage permittee.

Unlike mixed beverage gross receipts tax, a mixed beverage permittee can pass the mixed beverage sales tax on to the customer by:

  • adding a line item for the mixed beverage sales tax on the bill provided to the customer; or
  • including mixed beverage sales tax in the sales price. A permittee’s records must show that the sales price of alcohol includes mixed beverage sales tax.

Before calculating gross receipts for mixed beverage gross receipt tax, the mixed beverage sales tax must be deducted from the amount received.

A mixed beverage permittee may state on invoices, receipts or bills one of the following:

that mixed beverage sales tax is included in the sales price (open this section to see a receipt example)

EXAMPLE 1

Item Amount
Dbl Cheeseburger5.25
Fr Fries3.00
Margarita frz (2)7.00
TOTAL15.25

Sales and MB Sales taxes are included in sales price.

the amount of mixed beverage sales tax imposed on that sale (open this section to see a receipt example)

EXAMPLE 2

Item Amount
Dbl Cheeseburger4.75
Fr Fries2.75
Draft Beer (2)7.00
Subtotal14.50
Sales Tax0.62
MB Sales Tax0.58
TOTAL15.70
the combined amount of mixed beverage taxes on that sale (open this section to see a receipt example)

EXAMPLE 3

Item Amount
Dbl Cheeseburger4.75
Fr Fries2.75
Mexican Martini (2)7.00
Subtotal14.50
Sales Tax0.62
MB Sales Tax0.58
TOTAL15.70

Included in bill: Customer pays $0.58 on this sale of alcohol. Not included in bill: [Business Name] pays 6.7% tax ($0.47) on this sale of alcohol. Total amount paid to state on alcohol $1.05.

the combined amount of sales and mixed beverage sales taxes imposed on all items listed on that invoice (open this section to see a receipt example)

EXAMPLE 4

Item Amount
Dbl Cheeseburger4.75
Fr Fries2.75
Mexican Martini (2)7.00
Subtotal14.50
Sales and MB Sales Tax1.20
TOTAL15.70

Provisions in Rule 3.1001 relating to mixed beverage gross receipts tax also apply to mixed beverage sales tax except for the mixed beverage gross receipts tax itself. For instance, information on record keeping, documentation and taxability for mixed beverage gross receipts tax also applies to mixed beverage sales tax.

The Alcoholic Beverage Code authorizes the Texas Alcoholic Beverage Commission to regulate alcoholic beverages, including issuing alcoholic beverage permits and collecting alcohol excise taxes.

Rates

8.25 percent (.0825) on sales of mixed beverages.

Due Date

20th day of the month following the end of the reporting period.

Penalties and Interest

Penalties
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $10,000

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
  • Check
$10,000 - $49,999

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
$50,000 - $99,999

WebFile is the only acceptable reporting method.

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
$100,000 or more

WebFile is the only acceptable reporting method.

TEXNET is the only acceptable payment method.

Additional Resources