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Mixed Beverage Gross Receipts Tax
Who is responsible for this tax?
Those who sell, prepare or serve mixed beverages (distilled spirits, beer, ale and wine) must pay this tax, as well as those who sell, prepare or serve 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 mixed beverage permittee. The mixed beverage gross receipts tax is in addition to the mixed beverage sales tax imposed on the sale or service of alcoholic beverages, ice or mixers.
The person or organization holding the mixed beverage permit – not the customer – must pay the mixed beverage gross receipts tax. The mixed beverage permit holder may not add it to the selling price as a separate charge or deduct it from the amount received. An amount identified on an invoice as a “tax” is fully due to the state, in addition to the mixed beverage gross receipts tax.
A mixed beverage permittee can include either of the following on an invoice, receipt or bill:
a separate statement of the amount of mixed beverage tax the permittee will pay on the customer's purchase of alcohol (open this section to see a receipt example)
EXAMPLE 1
| Item | Amount |
|---|---|
| Dbl Cheeseburger | 4.75 |
| Fr Fries | 2.75 |
| Mexican Martini (2) | 7.00 |
| Subtotal | 14.50 |
| Sales Tax | 0.62 |
| MB Sales Tax | 0.58 |
| TOTAL | 15.70 |
Not included in bill: [Business Name] pays 6.7% tax ($0.47) on this sale of alcohol.
a statement of the combined amount of mixed beverage gross receipts tax the permittee will pay and mixed beverage sales tax imposed on the customer’s purchase of alcohol (open this section to see a receipt example)
EXAMPLE 2
| Item | Amount |
|---|---|
| Dbl Cheeseburger | 4.75 |
| Fr Fries | 2.75 |
| Margarita frz (2) | 7.00 |
| Subtotal | 14.50 |
| Sales Tax | 0.62 |
| MB Sales Tax | 0.58 |
| TOTAL | 15.70 |
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 Alcoholic Beverage Code authorizes the Texas Alcoholic Beverage Commission to regulate alcoholic beverages, including issuing alcoholic beverage permits and collecting alcohol excise taxes.
Sales by Nonprofit and Exempt Organizations
A seller who is a permittee listed under Texas Tax Code Section 183.001(b)(1), including a nonprofit entity temporary event permittee, is required to report and pay mixed beverage gross receipts tax on each mixed beverage sold, prepared or served for on-premises consumption.
There is no exemption on mixed beverage gross receipts tax. Entities and organizations that are exempt under Texas Tax Code Sections 151.309 and 151.310 must report and pay mixed beverage gross receipts tax.
Mixed Beverage Sales Tax
A governmental entity or nonprofit organization is responsible for collecting mixed beverage sales tax on each mixed beverage sold, prepared or served for on-premises consumption. Nonprofit organizations that qualify for exemption from sales and use tax under Texas Tax Code Section 151.310 may sell alcoholic beverages tax-free during a qualifying fundraising sale or auction authorized by Texas Tax Code Sections 151.310(c) and 151.321.
For more information on obtaining an alcohol permit, contact the Texas Alcoholic Beverage Commission (TABC). For additional information on your mixed beverage tax responsibility, see Publication 96-1780, Mixed Beverage Taxes: What You Can Expect (PDF).
Rates
6.7 percent (.067) of gross receipts.
Due Date
Monthly – 20th day of the month following the end of each calendar month (for example, April 20 for March activity).
Penalties and Interest
Penalties
- A $50 penalty is assessed on each report filed after the due date.
- 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
- Past due taxes are charged interest beginning 61 days after the due date.
- To calculate interest on past due taxes, visit Interest Owed and Earned.
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:
$10,000 - $49,999
Select one of these reporting methods:
Select one of these payment methods:
$50,000 - $499,999
Webfile is the only acceptable reporting method.
Select one of these payment methods:
$500,000 or more
Webfile is the only acceptable reporting method.
TEXNET is the only acceptable payment method.
Additional Resources
- Refunds
- Security Requirements for Texas Mixed Beverage Taxes
- Texas Alcoholic Beverage Commission
- Mixed Beverage Tax Receipts
- Local Mixed Beverage Tax Allocation Historical Summary
- Local Mixed Beverage Tax Allocation Comparison Summary
- Local Mixed Beverage Tax Allocation Payment Distribution Schedule