Streamline Tax Consultants | The Experts in Texas Mixed Beverage Sales Tax
Starting January 1, 2014, the State of Texas imposed a mixed beverage sales tax on every mixed beverage sold, prepared, or served by a mixed beverage permit holders in Texas. The mixed beverage sales tax is in addition to mixed beverage gross receipts tax already imposed on the sale of mixed beverages. The mixed beverage tax is also due on nonalcoholic beverages and ice sold, prepared, or served to be mixed with an alcoholic beverage and consumed on the premises.
If you hold a permit to sell mixed beverages in the State of Texas, the mixed beverage sales tax applies to you. Are you worried you might be overpaying or underpaying your sales taxes? Don’t let the new tax add chaos to your already busy life as a business owner. Let the mixed beverage sales tax experts at Streamline handle it for you.
Texas Mixed Beverage Sales Tax | Texas Mixed Beverage Gross Receipts Tax
Prior to January 1, 2014, Texas mixed beverage permit holders were already paying the mixed beverage gross receipts tax. So how is the new mixed beverage sales tax different?
Unlike the mixed beverage gross receipts tax, the new mixed beverage sales tax law shifts the tax burden to customers who purchase cocktails and coolers; and it cuts the state’s mixed beverage gross receipts tax from 14 percent to 6.7 percent. To compensate for the loss in tax dollars from Texas restaurants and bars, the law imposes a new 8.25 percent sales tax on mixed beverages that customers must pay.
How do you pass the mixed beverage sales tax on to the customer? You have a few options:
- You may add a line item for the mixed beverage sales tax to the ticket provided to the customer
- You may include the mixed beverage sales tax in the sales price. In other words, change your price to reflect the new sales tax.
If you choose the latter, your records must show that the sales price of alcoholic beverages sold in your establishment includes the mixed beverage sales tax.
Before calculating the amount owed in mixed beverage gross receipts tax, deduct the mixed beverage sales tax from the amount received. The mixed beverage sales tax is due to be paid by the 20th day of the month following the end of the reporting period.
Trust The Mixed Beverage Tax Experts at Streamline | Contact Us Today
Changes in tax laws can be difficult to keep up with, and sometimes they are simply confusing. Be certain you are paying only the required amount in taxes on mixed beverages, and not a penny more. Contact the mixed beverage sales tax experts at Streamline today.