Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter HH - MIXED BEVERAGE TAXES › Section 3.1001 - Mixed Beverage Gross Receipts Tax

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. The following words and terms, when used in this section, shall
				  have the following meanings, unless the context clearly indicates otherwise.
(1) Alcoholic beverage--Alcohol, or any
				  beverage containing more than 0.5% of alcohol by volume, which is capable of
				  use for beverage purposes, either alone or diluted.
(2) Bad debts--The unpaid portion of the
				  gross receipts on sales or services that have been charged off the books as a
				  bad debt and that are deducted for federal tax purposes during the same or
				  subsequent reporting period.
(3)
				  Cash or ticket bar--A bar at a special function at which guests can purchase
				  alcoholic beverages. Payments for the alcoholic beverages can be made by using
				  cash, credit cards, or debit cards, or by redeeming tickets that are purchased
				  by guests.
(4) Complimentary
				  alcoholic beverage--An alcoholic beverage served without any consideration paid
				  to the permittee.
(5) Mandatory
				  gratuity charge--Any amount required by the permittee in excess of the charge
				  for the sale of alcoholic beverages.
(6) Mixed beverage--A serving of a beverage
				  composed in whole or in part of an alcoholic beverage in a sealed or unsealed
				  container of any legal size for consumption on the premises where served or
				  sold by a permittee.
(7) Open
				  bar--A bar at a special function at which alcoholic beverages have been paid
				  for by the host or are prepaid through an admission fee. This differs from the
				  provision of complimentary alcoholic beverages in that the alcoholic beverages
				  are purchased by the host or donated to the host for the purpose of being
				  served for free at the special function.
(8) Permittee--A person, agent, or the
				  officer, director, manager, or managing general partner of an entity that is
				  the holder of a mixed beverage permit, a mixed beverage late hours permit, a
				  mixed beverage permit holding a food and beverage certificate, a daily
				  temporary mixed beverage permit, a private club registration permit, a private
				  club exemption certificate permit, a private club late hours permit, a daily
				  temporary private club permit, a private club registration permit holding a
				  food and beverage certificate, a caterer's permit, or a rectifier's and
				  distiller's permit issued by the Texas Alcoholic Beverage Commission.
(9) Qualified employees--Employees who
				  customarily and regularly provide the service upon which a gratuity is based,
				  including, but not limited to, waiters, waitresses, busboys, service
				  bartenders, wine stewards, and maitres d'hotel . The term does not include
				  janitorial help, chefs, cashiers, or dishwashers.
(10) Reasonable mandatory gratuity charge--A
				  mandatory gratuity charge that does not exceed 20%.
(11) Source record--A dated customer service
				  check or ticket; a dated cash register receipt, if coded to reflect all
				  information required by subsection (k) of this section; or the equivalent of a
				  dated customer service check or a dated cash register receipt, subject to
				  approval by the comptroller.
(12)
				  Temporary membership card--A card printed and sold to a private club by the
				  Texas Alcoholic Beverage Commission to be sold by the private club to an
				  individual that entitles the individual to all the privileges of membership in
				  the private club for a period not to exceed three days. The card also entitles
				  the holder to bring not more than three persons into the private club as the
				  holder's guests.
(13) Voluntary
				  gratuity--An amount added to the bill by the purchaser or money given freely by
				  the purchaser over and above the price charged for the sale or service of
				  alcoholic beverages.
(14) Walked
				  checks or tabs--An industry term that refers to the instance of a customer that
				  on a particular business day consumes alcoholic beverages and leaves the
				  permittee's premises without paying or providing the appropriate consideration
				  for the alcoholic beverages. These differ from bad debts in that no agreement
				  exists to extend credit to the customer; and these differ from complimentary
				  alcoholic beverages in that the intent is to sell the alcoholic beverages and
				  not be given away as complimentary alcoholic beverages.