HBA-ALS H.B. 3611 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3611 By: Burnam Licensing & Administrative Procedures 4/26/1999 Introduced BACKGROUND AND PURPOSE The purpose of this bill is to enable cities to impose a tax on gross alcohol sales in bars, hotels, and restaurants. H.B. 3611 allows a municipality to impose a sales tax on mixed beverages and beverages sold for the purpose of being mixed with an alcoholic beverage, excluding mixed beverages sold for home consumption, to fund treatment programs for drug dependency and alcoholism. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 5, Alcoholic Beverage Code, by adding Chapter 207, as follows: CHAPTER 207. MUNICIPAL TAXATION OF MIXED BEVERAGES Sec. 207.001. DEFINITIONS. Defines "alcoholic beverage," "mixed beverage," and "permittee." Sec. 207.002. TAX AUTHORIZED. (a) Authorizes a municipality by ordinance to impose a tax on the gross receipts of a permittee received from the sale, preparation, or service of mixed beverages or from the sale, preparation, or service of ice or nonalcoholic beverages that are sold, prepared, or served for the purpose of being mixed with an alcoholic beverage and consumed on the premises of the permittee. (b) Provides that the tax authorized by this chapter does not apply a permittee's gross receipts unless the tax imposed by Chapter 183, Tax Code (Mixed Beverage Tax), also applies to the gross receipts. (c) Provides that the credits and refunds provided by Section 183.055, Tax Code (Credits and Refunds for Bad Debts), apply to the tax authorized by this chapter. Sec. 207.003. COLLECTION OF TAX. (a) Requires a permittee, who is subject to the tax imposed under this chapter, to collect the tax for the benefit of the municipality and report and send the taxes collected to the municipality pursuant to the ordinance. (b) Authorizes a municipality by ordinance to prescribe penalties, including interest charges, for failure to keep records required by the municipality, to report when required, or to pay the tax when due. (c) Authorizes the attorney acting for the municipality to bring suit against a person who fails to collect a tax under this chapter and to pay it to the municipality as required. (d) Authorizes a municipality by ordinance to permit a permittee who is required to collect a tax under this chapter to retain a percentage of the amount collected and required to be reported as reimbursement to the permittee for the costs of collecting the tax. Authorizes the municipality to provide that the permittee may retain the amount only if the permittee pays the tax and files reports as required by the municipality. Sec. 207.004. DEPOSIT OF TAX REVENUE. (a) Requires a municipality to deposit revenue from a tax imposed under this chapter in a special fund in the municipal treasury. (b) Authorizes the municipality to use money in the fund only to finance treatment programs for drug dependency and alcoholism that meet standards and guidelines prescribed by the municipality. Sec. 207.005. EFFECTIVE DATE OF TAX. Provides that a tax imposed under this chapter or a change in the tax rate takes effect on the date prescribed by the ordinance imposing the tax or changing the rate. SECTION 2. Emergency clause. Effective date: upon passage.