Texas Comptroller of Public Accounts    STAR System


201002876L



STAR SUPERSEDED WITH SUMMARY

Accession No. - 201002876L
Supersede type – partially
Document superseded on – 04/02/2014
Issue(s) that caused the document to be superseded – mixed
beverage gross receipts tax rate of 14%
Reason(s): Statutory change - HB 3572, 83rd Regular Session (2013) 
lowered the mixed beverage gross receipts tax from 14% to 6.7% and 
additionally imposed a mixed beverage sales tax of 8.25% effective 
January 1, 2014.  For current policy see STAR 201311851L.



February 3, 2010

**************

Dear **************:

Thank you for your question concerning your tax responsibilities. It was a 
pleasure to talk with you. I have restated the fact situation below, followed 
by my response.

A beer distributor will donate $5,000 to the ORGANIZATION. The ORGANIZATION 
will write you a check for $5,000 to purchase beer from that distributor. The 
beer will be given away at a fundraiser where you will be selling hard alcohol. 
You asked if you are liable for the 14 percent tax on that beer since you 
purchased the beer using your mixed beverage license.

Tax will not be due for beer given away at the above described fundraiser as 
long as the following applies:

* The donated beer is given away without restrictions;

* There are no tickets sold or provided to redeem donated beer (e.g., price of 
entrance includes two tickets that can be redeemed for two of the donated 
beers); and

* Records provide an audit trail as proof the $5,000 used to purchase the beer 
was donated for that purpose (e.g., a copy of a letter from the ORGANIZATION 
thanking the beer distributor for the $5,000 donation used to purchase $5,000 
worth of beer that was given away at the fundraising event).

Document donated beer from other beer and liquor sold or served at the event. 
The mixed beverage gross receipts tax base for liquor and other beer served at 
the event must follow the guidelines in Rule 3.1001(e), regarding nonprofit 
organizations holding fundraising and other special events.

Any beer not given away at the event is the property of the ORGANIZATION. The 
ORGANIZATION will owe use tax on the remaining beer, unless the beer is later 
given away at a fundraising event.

Links to rules and other mixed beverage tax information can be found on our 
“Mixed Beverage Tax” Web page at 
http://window.state.tx.us/taxinfo/mixbev/index.html.

This opinion is based on the facts presented and current law. Other facts, 
though similar, may result in different answers.

Sign up for e-mail updates at the Comptroller topics of your choice at 
http://www.window.state.tx.us/subscribe.

Our goal is to provide you with prompt, professional service.  Please take a 
moment to complete our online survey at: 
http://aixtcp.cpa.state.tx.us/surveys/tpsurv2/index.html

If you have questions or need more information, please contact me.

Sincerely,


Donald S. Dillard
Oil & Gas, Fuels and Miscellaneous Taxes
Tax Policy Division




-----Original Message-----
From: **************
Sent: Thursday, January 28, 2010 10:38 AM
To: Tax Help
Subject: [TaxHelp Form] Mixed Beverage Tax

Submitted by: E-mail address: **************

name: **************
email: **************

Taxpayer Name: **************

Taxpayer Number: **************

Telephone Number: **************

Question: In a situation where beer has been 'donated' to a large function 
where I will be selling the hard alcohol...what are my responsibilities. The 
beer distributor will be donating (for example) 5K to the ORGANIZATION who 
turns around writes me a check for 5K which is how I purchase the beer to be 
given away at the event.  Because I do actually purchase the beer using my 
license...am I liable for the 14 percent tax on that beer?




ACCESSION NUMBER: 201002876L
SUPERSEDED: S
DOCUMENT TYPE: L
DATE: 02/03/2010
TAX TYPE: BEVERAGE