TITLE: Relating to changing the manner in which the tax on mixed beverages is imposed.

SUMMARY: Relating to changing the manner in which the tax on mixed beverages is imposed.

FULL TEXT:
AN ACT relating to changing the manner in which the tax on mixed beverages is imposed. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 151.308(a), Tax Code, is amended 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) mixed beverages, ice, or nonalcoholic beverages and the preparation or service of these items [if the receipts are] taxable by Chapter 183; (7) alcoholic beverages when sold to the holder of a private club registration permit or to the agent or employee of the holder of a private club registration permit if the holder or agent or employee is acting as the agent of the members of the club and if the beverages are to be served on the premises of the club; (8) oil well service as taxed by Subchapter E, Chapter 191; and (9) insurance premiums subject to gross premiums taxes. SECTION 2. The heading to Subtitle G, Title 2, Tax Code, is amended to read as follows: SUBTITLE G. GROSS RECEIPTS AND ALCOHOLIC BEVERAGE TAXES SECTION 3. Section 183.021, Tax Code, is amended to read as follows: Sec. 183.021. TAX IMPOSED ON MIXED BEVERAGES. (a) A tax [at the rate of 14 percent] is imposed on the [gross receipts of a permittee received from the] sale, use, preparation, or service of mixed beverages and [or from] the sale, use, preparation, or service of ice or nonalcoholic beverages that are sold, used, prepared, or served for the purpose of being mixed with an alcoholic beverage and consumed on the premises of a [the] permittee. (b) The tax rate is 14 percent of the sales price of the item sold, used, prepared, or served. SECTION 4. Subchapter B, Chapter 183, Tax Code, is amended by adding Section 183.0215 to read as follows: Sec. 183.0215. APPLICABILITY OF OTHER LAW. (a) Except as provided by this chapter: (1) the tax imposed by this chapter is administered, imposed, collected, and enforced in the same manner as the tax under Chapter 151 is administered, imposed, collected, and enforced; and (2) the provisions of Chapter 151 applicable to the sales tax imposed under Subchapter C, Chapter 151, apply to the tax imposed by this chapter. (b) Sections 151.423 and 151.424 do not apply to the tax imposed by this chapter. (c) A sale to a permittee of an item described by Section 183.021 is not a sale for resale for purposes of Section 151.302 if the item is mixed with or becomes a component part of a mixed beverage subject to taxation under this chapter that is served without any consideration paid to the permittee. (d) An item subject to taxation under this chapter is exempted from taxes imposed under Subtitle C, Title 3. SECTION 5. Section 183.051(b), Tax Code, as effective September 1, 2013, is amended to read as follows: (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 taxes received under this chapter [receipts] from 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 taxes received under this chapter [receipts] from permittees within the incorporated municipality during the quarter. SECTION 6. Section 1504.256(b), Government Code, is amended to read as follows: (b) The total amount of mixed beverage tax receipts pledged under Subsection (a) may not exceed an amount equal to 1-1/2 percent of the sales price of items [gross receipts] subject to taxation under Chapter 183, Tax Code, from permittees within the municipality. SECTION 7. Sections 183.022, 183.023, 183.024, and 183.055, Tax Code, are repealed. SECTION 8. The change in law made by this Act does not affect a tax imposed before the effective date of this Act. A tax imposed before the effective date of this Act is governed by the law in effect when the tax was imposed, and that law is continued in effect for purposes of the liability for and collection of that tax. SECTION 9. This Act takes effect September 1, 2013.