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Summary: HB 3572 reduces the tax on gross receipts from a permit holder for the sale of mixed drinks from 14% to 7%. HB 3572, however, imposes an additional tax on the sale of mixed drinks and related items, such as ice or mixers, at a rate of 8.25% of the sales price of the beverage served. HB 3572 allows a permit holder forced to levy this tax to disclose the amount of the tax to customers.
Analysis: HB 3572 increases the burden of government on retailers selling mixed drinks. These retailers will have to impose this tax, and consumers will be forced to pay this tax. HB 3572 will take additional resources from consumers buying mixed drinks, resulting in an infringement on property rights, and limiting the amount of resources available to the private sector to create economic value in Texas. Vote “no,” on HB 3572.