Sales of Beer and Ale to Ultimate Consumers are Subject to Texas Sales and Use Tax

Thursday, October 17th, 2013

 
 
Share
Link
Texas
General

The Texas Comptroller of Public Accounts has sent out special mailings on the recently enacted Senate Bill 518 relating to certain manufacturers and brewers of beer and ales. The letters remind these manufacturers and brewers that, if they are eligible to make direct sales to ultimate consumers, such sales are subject to Texas sales and use tax.

Previously, persons with manufacturers' licenses were permitted to manufacture or brew beer, distribute or sell beer to holders of distributor's licenses or qualified persons outside the state, dispense beer for on-premises consumption, bottle and can beer brewed in Texas or out-of-state for resale in Texas, and conduct beer samplings at a retailer's premises. Persons with brewers' permits were permitted to import ale and malt liquor from a nonresident brewer's permitee, sell ale and malt liquor to wholesale permit holders, dispense ale and malt liquor for on-premises consumption, and conduct on-premises samplings of ale or malt liquor.

Effective June 2013, licensed manufacturers and permitted brewers may make direct sales to ultimate consumers if the following criteria are met: (1) their annual production of beer and ale at a single brewery location does not exceed 225,000 barrels; (2) their sales to ultimate consumers occur at these single brewery locations; and (3) their sales to ultimate consumers do not exceed 5,000 barrels annually. These sales may only be made between 8:00 a.m. and 12:00 a.m. (midnight) Monday through Saturday, and between 10:00 a.m. to 12:00 a.m. (midnight) Sunday.

http://www.window.state.tx.us/taxinfo/special_mailings/BrewersPermitLetter_130903.pdf

http://www.window.state.tx.us/taxinfo/special_mailings/ManufacturersLicenseHolder_130903.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...

Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018 -The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases...