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Beer and Wine May Be Mixed Beverages in Texas


 How to tax a mixed beverage in Texas.

The South by Southwest Music and Media Conference (SXSW) takes place in mid-March. Last year, more than 2000 bands performed over the course of the week-long festival, and this year should be similar. That makes for a lot of thirsty performers and listeners.

The publication of updated information regarding the Texas mixed beverage sales tax is therefore timely. Cheers!

Mixed beverage sales tax

If you hold a mixed beverage permit in Texas, you are responsible for collecting and remitting the 8.25% mixed beverage sales tax that is imposed on each mixed beverage sold. Mixed beverage here includes distilled spirits, beer, ale and wine. The mixed beverage sales tax is also imposed on sales of nonalcoholic beverages, and on “ice sold, prepared or served to be mixed with an alcoholic beverage and consumed on the premises of the mixed beverage permittee.” May as well take that drink neat.

The mixed beverage sales tax may be passed on to the consumer in one of the following ways:

  • By “adding a line item for the mixed beverage sales tax on the bill provided to the customer.”
  • By “including mixed beverage sales tax in the sales price.” Records must clearly show that the tax is included in the sales price.

Mixed beverage gross receipts tax

In addition to the mixed beverage sales tax, Texas imposes a 6.7% mixed beverage gross receipts tax on mixed beverage permittees. Unlike the mixed beverage sales tax, the mixed beverage gross receipts tax may not be passed on to the consumer. To calculate the gross receipts tax, sellers should deduct the mixed beverage sales tax from the amount received.

Additional information, including specific record keeping and filing requirements, is available from the Texas Comptroller of Public Accounts.

Simplify sales tax management in Texas and other states. Learn more.

photo credit: Cocktail Looking Delicious in Orrefors Glass via photopin (license)


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.