HB 3572

83(R) - 2013

Vote Recommendation

  • Neutral
  • Negative
  • Neutral
  • Negative
  • Neutral


Harvey Hilderbran

Bill Caption

Relating to the administration, collection, and enforcement of taxes on the wholesale and retail sale of certain alcoholic beverages.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB3572, Committee Report 1st House, Substituted: a positive impact of $21,295,000 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis


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.