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Texas Sales Tax and Brewers of Beer, Ale

  • Oct 15, 2013 | Gail Cole

 Texas Comptroller dives into sales tax requirements of brewers.

The Comptroller of Public Accounts has issued a letter to Licensed Manufacturers of Beer and Ale and a letter to Licensed Brewers of Ale and Beer. Both explain that “[s]ales of ale [and beer] to ultimate consumers are subject to sales and use tax,” so brewers and manufacturers must obtain a Texas Sales and Use Tax Permit.  Sales and sales tax obligations for distillers in Texas were earlier this year.

Effective June 14, 2013, “brewers whose annual combined production of ale and beer under a manufacturer’s license for a single brewery location does not exceed 225,000 barrels a year may sell beer to ultimate consumers at that location.” This is pursuant to Senate Bill 518.

Licensed breweries and manufacturers in Texas may sell no more than 5,000 barrels per year to ultimate consumers. That’s 5,000 barrels total, not 5,000 of beer and 5,000 of ale.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.