BILL ANALYSIS S.B. 643 By: Montford (Holzheauser) May 8, 1995 Committee Report (Unamended) BACKGROUND During the 73rd Legislative Session, H.B. 1445 was enacted establishing Chapter 183, Tax Code, to provide for the mixed beverage tax. This legislation transferred the administration of the tax from the Texas Alcoholic Beverage Commission to the Comptroller's office on January 1, 1994. In evaluating this chapter of the Tax Code, the Comptroller recommends adjusting certain provisions. PURPOSE This bill proposes to amend certain provisions pertaining to the mixed beverage tax as follows: * Expands the definition of permittee. * Allows permittees to withhold tax payments or to receive refunds or credits for certain uncollectible accounts and would eliminate a penalty. * Eliminates the collection of the permittee surcharge now levied for the Comptroller's administration of the tax. * Extends provisions for suspending and canceling alcoholic beverage permits. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 183.001 (Definitions), Subsection (b)(1), Tax Code, by expanding the definition of "permittee" to include a private club exemption certificate permittee, a private club late hour permittee, a daily temporary private club permittee, a daily temporary mixed beverage permittee, a mixed beverage late hour permittee, or a caterer permittee. SECTION 2. Amends Section 183.022 (Tax Return Due Date), Subsection (a), Tax Code, by deleting the word "sworn" in reference to the tax returns. SECTION 3. Amends Section 183.055 (Penalty), Tax Code, by deleting the penalty provision and replacing it with a provision titled CREDITS AND REFUNDS FOR BAD DEBTS. The Section would allow permittees to withhold tax payments or to receive refunds or credits for certain uncollectible accounts. SECTION 4. Amends Section 5.50 (Establishment of Certain Fees), Subsection (b), Alcoholic Beverage Code, by removing a permit surcharge on new permits or renewals that was designated to fund the administration of the tax. SECTION 5. Amends Section 11.61 (Cancellation or Suspension of Permit), Subsection (b), Alcoholic Beverage Code, by authorizing the TABC to suspend or cancel a permit for non-payment of taxes under Chapter 183 (Mixed Beverage Tax), Tax Code. SECTION 6. Amends Section 28.17 (Summary Suspension), Subsections (a) and (c), Alcoholic Beverage Code, by authorizing the TABC to suspend a permit for failure to post security required by the Comptroller under Section 183.053, Tax Code, and authorizes the TABC to terminate a suspension for failure to post security if the security is subsequently posted. This amendment also changes the citation for Administrative Procedure and Texas Register Act, V.T.C.S., to Chapter 2001, Government Code. SECTION 7. Emergency clause. SUMMARY OF COMMITTEE ACTION On April 27, 1995, the committee met in a formal meeting and considered S.B. 643. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to report S.B. 643 to the House without amendment with the recommendation that it do pass.