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

Thursday, October 17th, 2013

 
 
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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


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