CHAPTER 201. LIQUOR TAXES
ALCOHOLIC BEVERAGE CODE
TITLE 5. TAXATION
CHAPTER 201. LIQUOR TAXES
SUBCHAPTER A. TAX ON LIQUOR OTHER THAN ALE AND MALT LIQUOR
Sec. 201.01. LIQUOR. In this subchapter, "liquor" does not
include ale or malt liquor.
Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.011. TIMELY FILING: DILIGENCE. A person filing a
report or making a tax payment complies with the filing
requirements for timeliness for a report not filed or a payment
not made on time if the person exercised reasonable diligence to
comply with the filing requirements and the failure to file or
the making of a late payment is not the fault of the person.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 95, eff. Sept. 1,
1993.
Sec. 201.02. "FIRST SALE" DEFINED. In this subchapter, "first
sale":
(1) as applied to liquor imported into this state by the holder
of a wholesaler's permit authorizing importation, means the first
actual sale by the permittee to the holder of any other permit
authorizing the retail sale of the beverage or to the holder of a
local distributor's permit; and
(2) as applied to all other liquor, means the first sale,
possession, distribution, or use in this state.
Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.03. TAX ON DISTILLED SPIRITS. (a) A tax is imposed on
the first sale of distilled spirits at the rate of $2.40 per
gallon.
(b) The minimum tax imposed on packages of distilled spirits
containing two ounces or less is five cents per package.
(c) Should packages containing less than one-half pint but more
than two ounces ever be legalized in this state, the minimum tax
imposed on each of these packages is $0.122.
Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,
Sec. 8, eff. Oct. 2, 1984.
Sec. 201.04. TAX ON VINOUS LIQUOR. (a) A tax is imposed on the
first sale of vinous liquor that does not contain over 14 percent
of alcohol by volume at the rate of 20.4 cents per gallon.
(b) A tax is imposed on vinous liquor that contains more than 14
percent of alcohol by volume at the rate of 40.8 cents per
gallon.
(c) A tax is imposed on artificially carbonated and natural
sparkling vinous liquor at the rate of 51.6 cents per gallon.
Acts 1977, 65th Leg., p. 529, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,
Sec. 9, eff. Oct. 2, 1984.
Sec. 201.05. REPORTING SYSTEM. A person who holds a permit
authorizing the importation of liquor into this state shall pay
the liquor tax by the reporting system under bond.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.06. PAYMENT OF TAX; DISCOUNTS. (a) The tax on liquor,
levied and computed under this subchapter, shall be paid by a
remittance payable to the comptroller and forwarded together with
any required sworn statement of taxes due to the commission in
Austin on or before the date it is due.
(b) A discount of two percent of the amount due shall be
withheld by the permittee for keeping records, furnishing bonds,
and properly accounting for the remittance of the tax due. No
discount is permitted if the tax is delinquent at the time of
payment.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.03, eff.
Sept. 1, 1997.
Sec. 201.07. DUE DATE. The tax on liquor is due and payable on
the 15th of the month following the first sale.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.075. SUMMARY SUSPENSION. (a) The commission may
summarily suspend, without a hearing, the permit of a permittee
who fails to file a report or return or to make a tax payment
required by this subchapter. Chapter 2001, Government Code does
not apply to the commission in the enforcement and administration
of this section.
(b) A suspension under this section takes effect on the third
day after the date the notice of suspension is given. The notice
shall be given to the permittee or the permittee's agent or
employee by registered or certified mail if not given in person.
(c) The commission shall terminate a suspension made under this
section when the permittee files all required returns and makes
all required tax payments that are due.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 96, eff. Jan. 1,
1994. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),
eff. Sept. 1, 1995.
Sec. 201.08. EXEMPTION FROM TAX. (a) No tax may be collected
on liquor:
(1) shipped out of state for consumption outside the state; or
(2) sold aboard a ship for ship's supplies.
(b) The commission shall provide forms for claiming the
exemption prescribed by this section.
(c) A tax credit shall be allowed for payment of any unintended
or excess tax.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.09. REFUND DUE ON DISPOSITION OUTSIDE OF STATE. The
holder of any permit authorizing the transportation of liquor out
of this state may apply to the commission for a refund of the
excise tax on liquor on which the state tax has been paid on
proper proof that the liquor was sold or disposed of outside of
this state.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.10. EXCESS TAX. A permittee is entitled to a refund or
tax credit on future tax payment for any excess tax on liquor
paid through oversight, mistake, error, or miscalculation.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.11. TAX CREDITS AND REFUNDS. The commission shall
provide by rule for the equitable and final disposition of tax
refunds or credits when liquor tax is overpaid or paid by
mistake. It shall prescribe the time and manner for filing claims
for credits and refunds and provide appropriate forms.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.12. APPROPRIATIONS FOR REFUNDS. Necessary funds from
the collection of the tax on imported liquor before the revenue
from that tax has been allocated may be appropriated for the
payment of refunds of tax on imported liquor.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.13. SALE OF UNTAXED LIQUOR PROHIBITED. No person may
sell, offer for sale, or store for the purpose of sale in this
state any liquor on which the state or federal tax, if due, has
not been paid.
Acts 1977, 65th Leg., p. 530, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.14. INVOICES OF TRANSPORTED LIQUOR. A holder of a
permit authorizing the wholesaling of liquor and the transporting
of liquor outside of this state shall furnish to the commission
duplicate copies of all invoices for the sale of liquor
transported outside of this state within 24 hours after the
liquor has been removed from the permittee's place of business.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.15. EVIDENCE IN SUIT. In any suit brought to enforce
the collection of tax owed by the holder of a permit authorizing
the importation of liquor into this state, a certificate by the
commission or administrator showing the delinquency is prima
facie evidence of:
(1) the levy of the tax or the delinquency of the stated amount
of tax and penalty; and
(2) compliance by the commission with the provisions of this
code relating to the computation and levy of the tax.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.16. PENALTY. A person who violates any section of this
subchapter except Section 201.09 or 201.13 of this code commits a
misdemeanor which on conviction is punishable by a fine of not
less than $100 nor more than $1,000 or by imprisonment in the
county jail for not less than 30 days nor more than one year.
Violations of Sections 201.09 and 201.13 are punishable in
accordance with Section 1.05 of this code.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.17. LIQUOR IN METRIC CONTAINERS. For the purpose of
the taxes imposed on liquor by this subchapter and on ale and
malt liquor by Subchapter B of this chapter, if the liquor is in
metric containers the amount of tax due is determined by
converting the metric amount into the equivalent amount in
gallons and applying the appropriate tax rate. The commission
shall prepare tables showing the amount of tax due on various
types of liquor, including ale and malt liquor, in metric
containers.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977.
SUBCHAPTER B. TAX ON ALE AND MALT LIQUOR
Sec. 201.41. FIRST SALE. In this subchapter, "first sale"
means:
(1) the first actual sale of ale or malt liquor by the holder of
a wholesaler's, general class B wholesaler's, or local class B
wholesaler's permit to:
(A) a permittee authorized to sell to ultimate consumers;
(B) a local distributor permittee; or
(C) a private club registration permittee; or
(2) the importation of ale or malt liquor under Section 107.07
of this code.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,
Sec. 10, eff. Oct. 2, 1984.
Sec. 201.42. TAX ON ALE AND MALT LIQUOR. A tax is imposed on
the first sale of ale and malt liquor at the rate of $0.198 per
gallon.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,
Sec. 11, eff. Oct. 2, 1984.
Sec. 201.43. DUTY TO PAY TAX; DUE DATE. (a) The permittee
making the taxable first sale shall pay the tax on ale and malt
liquor imposed under Section 201.42 of this code.
(b) The tax is due and payable on the 15th day of the month
following the month in which the taxable first sale occurs.
Acts 1977, 65th Leg., p. 531, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2,
Sec. 12, eff. Oct. 2, 1984.
Sec. 201.44. TAX EXEMPTIONS. No tax may be collected on ale or
malt liquor:
(1) shipped out of the state for consumption outside the state;
or
(2) sold aboard a ship for ship's supplies.
Acts 1977, 65th Leg., p. 391, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.45. PROHIBITION OF SALE OF UNTAXED ALE OR MALT LIQUOR.
No person may sell, offer for sale, or store for the purpose of
sale in this state any ale or malt liquor on which the state or
federal tax, if due, has not been paid.
Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.46. TAX LIABILITY. A person possessing ale or malt
liquor on which the tax is delinquent is liable for the
delinquent tax in addition to the criminal penalties.
Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.47. TAX REFUNDS AND CREDITS. (a) The holder of a
permit authorizing the transportation of ale or malt liquor out
of the state may apply to the commission for a refund of the
excise tax on ale or malt liquor that has been paid on proper
proof that the ale or malt liquor was sold or disposed of outside
the state.
(b) Tax credits shall be allowed for overpayment or mistaken
payment of the tax on ale or malt liquor, and the commission
shall provide by rule for the equitable and final disposition of
the tax credits.
Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.48. PAYMENT. The tax on ale and malt liquor shall be
paid by a remittance payable to the comptroller and forwarded,
together with any required sworn statements of taxes due, to the
commission in Austin on or before the date it is due. A discount
of two percent of the amount due shall be withheld by the
permittee or licensee for keeping records, furnishing bonds, and
properly accounting for the remittance of the tax due. No
discount is permitted if the tax is delinquent at the time of
payment.
Acts 1977, 65th Leg., p. 391, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.04, eff.
Sept. 1, 1997.
Sec. 201.49. MAY REQUIRE INFORMATION. (a) The commission may
require all brewers, nonresident brewers, importers, wholesalers,
and class B wholesalers of ale and malt liquor to provide
information as to purchases, sales, and shipments to enable the
commission to collect the full amount of the tax due. No brewer,
nonresident brewer, importer, wholesaler, or class B wholesaler
may fail or refuse to furnish the required information.
(b) The commission may seize or withhold from sale the brewer's,
nonresident brewer's, importer's, wholesaler's, or class B
wholesaler's ale or malt liquor for failure or refusal to supply
the information required under Subsection (a) of this section or
to permit the commission to make an investigation of pertinent
records, whether the records are inside or outside of this state.
Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.50. INVOICES OF TRANSPORTED LIQUOR. The holder of a
permit authorizing the wholesaling of liquor and the
transportation of it out of the state shall furnish to the
commission duplicate copies of all invoices for the sale of
liquor transported out of the state within 24 hours after the
liquor has been removed from the permittee's place of business.
Violation of this section is punishable by the penalty prescribed
in Section 201.16 of this code.
Acts 1977, 65th Leg., p. 532, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.51. EVIDENCE IN SUIT. In any suit brought to enforce
the collection of tax due on ale or malt liquor brewed in or
imported into this state, a certificate by the commission or
administrator showing the delinquency is prima facie evidence of:
(1) the levy of the tax or the delinquency of the stated amount
of tax and penalty; and
(2) compliance by the commission with the provisions of this
code relating to the computation and levy of the tax.
Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.52. ALE AND MALT LIQUOR IN METRIC CONTAINERS. Section
201.17 of this code applies to the taxation of ale and malt
liquor in metric containers.
Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.53. SUMMARY SUSPENSION. (a) The commission may
summarily suspend, without a hearing, the permit of a permittee
who fails to file a report or return or to make a tax payment
required by this subchapter. Chapter 2001, Government Code does
not apply to the commission in the enforcement and administration
of this section.
(b) A suspension under this section takes effect on the third
day after the date the notice of suspension is given. The notice
shall be given to the permittee or the permittee's agent or
employee by registered or certified mail if not given in person.
(c) The commission shall terminate a suspension made under this
section when the permittee files all required returns and makes
all required tax payments that are due.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 97, eff. Jan. 1,
1994. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),
eff. Sept. 1, 1995.
SUBCHAPTER C. STAMPS
Sec. 201.71. STAMPS. Unless the liquor is exempt from tax or
payment has been or is to be made by a permittee in accordance
with the provisions of Subchapter A or B of this chapter, the tax
levied under Subchapter A or B shall be paid by affixing a stamp
or stamps on each bottle or container of liquor. The stamp shall
be affixed in strict accordance with the commission's rules and
regulations.
Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 2001, 77th Leg., ch. 191, Sec. 3, eff.
Sept. 1, 2001.
Sec. 201.72. DUTY TO PRINT. The commission and the board of
control shall have engraved or printed the liquor and beer tax
stamps required by this code. The board of control shall let the
contracts for the stamps required by this code as provided by
law. The commission shall expend funds necessary to keep an ample
supply of stamps on hand.
Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.73. DESIGN. The commission shall prescribe the design
and denomination of the tax stamps. Each stamp must show the
amount of tax for which it evidences payment and shall contain
the words "Texas State Tax Paid."
Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.74. OPERATION OF TAX STAMP PROGRAM. (a) The
commission is responsible for the custody and sale of tax stamps
and for the proceeds of the sales.
(b) The commission may sell tax stamps only to a person
designated by the commission.
(c) The commission may designate any state or national bank in
this state as its agent to deliver and collect for any tax stamps
and to remit the sale proceeds to it.
(d) Invoices for tax stamps shall be issued by the commission in
duplicate and numbered consecutively. The original of the invoice
shall be forwarded to the purchaser or to the person in whose
care it may be sent for the benefit of a qualified purchaser. The
second copy shall be kept by the commission.
(e) The commission shall keep a permanent record of all tax
stamps received and sold. This record shall provide a perpetual
inventory of all tax stamps and their disposition.
Acts 1977, 65th Leg., p. 533, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 280, Sec. 1, eff.
Sept. 1, 1995.
Sec. 201.75. DELIVERY OF STAMPS. The commission shall prescribe
the manner in which tax stamps are delivered to its inspectors in
charge of ports of entry.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 280, Sec. 2, eff.
Sept. 1, 1995.
Sec. 201.76. REFUNDS. (a) The commission may make refunds for
tax stamps in all cases where:
(1) stamped liquor is returned to the distillery or
manufacturer, on certification by a duly authorized
representative of the commission who inspected the shipment;
(2) stamped liquor has been destroyed, on certification by a
duly authorized representative of the commission that the liquor
has been destroyed;
(3) a person who has been authorized to purchase tax stamps and
is in possession of unused tax stamps on discontinuation of
business; and
(4) tax stamps of improper value have been erroneously affixed
to a bottle or container of liquor and those tax stamps have been
destroyed in a manner prescribed by the commission.
(b) To obtain a refund under this section, it must be shown that
the tax stamps for which a refund is asked were purchased from
the commission and that the refund is made to a person authorized
to purchase tax stamps from the commission. No other refunds for
tax stamps are allowed.
(c) Sufficient funds to pay refunds for tax stamps may be
appropriated from the revenue derived from the sale of the tax
stamps before that revenue has been allocated.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 280, Sec. 3, eff.
Sept. 1, 1995.
Sec. 201.77. WHO MAY PURCHASE STAMPS. The commission shall
designate those permittees or other persons entitled to purchase
state tax stamps.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.78. STAMPS FOR WINE. Tax stamps for wine shall be
issued in multiples of the rate assessed for each pint and for
each one-tenth of a gallon.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.79. ALTERNATIVE METHOD OF COLLECTING TAX ON WINE. The
commission may provide by rule an alternative method of
collecting the tax on wine. That method may dispense with the use
of tax stamps.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.80. EXEMPTION. The commission may prescribe by order
special rules for the payment of the tax imposed by Subchapter A
or B of this chapter in any circumstance that in the judgment of
the commission creates an emergency or makes it impractical to
require the affixing of tax stamps.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.81. STAMPS FOR DISTILLED SPIRITS. Tax stamps for
distilled spirits may be issued only in multiples of the rate
assessed each half-pint, except that when distilled spirits are
contained in containers of one-tenth of a gallon, tax stamps
shall be issued at the assessed rate for each type of distilled
spirit.
Acts 1977, 65th Leg., p. 534, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 201.82. IMPORTED DISTILLED SPIRITS; FEDERAL STAMP. A
container of distilled spirits that has a federal liquor strip
stamp attached or that has been imported from a foreign country
is subject to taxation and must have the appropriate state tax
stamp for distilled spirits affixed to it, unless it is taxed
under the reporting system.
Acts 1977, 65th Leg., p. 535, ch. 194, Sec. 1, eff. Sept. 1,
1977.