By Burnam                                             H.B. No. 3611
         76R5630 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a municipality to impose a tax on
 1-3     certain mixed alcoholic beverages.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 5, Alcoholic Beverage Code, is amended by
 1-6     adding Chapter 207 to read as follows:
 1-7             CHAPTER 207.  MUNICIPAL TAXATION OF MIXED BEVERAGES
 1-8           Sec. 207.001.  DEFINITIONS.  In this chapter:
 1-9                 (1)  "Alcoholic beverage" has the meaning assigned by
1-10     Section 1.04.
1-11                 (2)  "Mixed beverage" has the meaning assigned by
1-12     Section 1.04.
1-13                 (3)  "Permittee" has the meaning assigned by Section
1-14     183.001, Tax Code.
1-15           Sec. 207.002.  TAX AUTHORIZED.  (a)  A municipality by
1-16     ordinance may impose a tax on the gross receipts of a permittee
1-17     received from the sale, preparation, or service of mixed beverages
1-18     or from the sale, preparation, or service of ice or nonalcoholic
1-19     beverages that are sold, prepared, or served for the purpose of
1-20     being mixed with an alcoholic beverage and consumed on the premises
1-21     of the permittee.
1-22           (b)  The tax authorized by this chapter does not apply to the
1-23     gross receipts of a permittee unless the tax imposed by Chapter
1-24     183, Tax Code, also applies to the gross receipts.
 2-1           (c)  The credits and refunds provided by Section 183.055, Tax
 2-2     Code, also apply to the tax authorized by this chapter.
 2-3           Sec. 207.003.  COLLECTION OF TAX.  (a)  A permittee subject
 2-4     to the tax imposed under this chapter shall:
 2-5                 (1)  collect the tax for the benefit of the
 2-6     municipality; and
 2-7                 (2)  report and send the taxes collected to the
 2-8     municipality as provided by the ordinance imposing the tax.
 2-9           (b)  A municipality by ordinance may prescribe penalties,
2-10     including interest charges, for failure to keep records required by
2-11     the municipality, to report when required, or to pay the tax when
2-12     due.
2-13           (c)  The attorney acting for the municipality may bring suit
2-14     against a person who fails to collect a tax under this chapter and
2-15     to pay it to the municipality as required.
2-16           (d)  A municipality by ordinance may permit a permittee who
2-17     is required to collect a tax under this chapter to retain a
2-18     percentage of the amount collected and required to be reported as
2-19     reimbursement to the permittee for the costs of collecting the tax.
2-20     The municipality may provide that the permittee may retain the
2-21     amount only if the permittee pays the tax and files reports as
2-22     required by the municipality.
2-23           Sec. 207.004.  DEPOSIT OF TAX REVENUE.  (a)  A municipality
2-24     shall deposit revenue from a tax imposed under this chapter in a
2-25     special fund in the municipal treasury.
2-26           (b)  The municipality may use money in the fund only to
2-27     finance treatment programs for drug dependency and alcoholism that
 3-1     meet standards and guidelines prescribed by the municipality.
 3-2           Sec. 207.005.  EFFECTIVE DATE OF TAX.  A tax imposed under
 3-3     this chapter or a change in the tax rate takes effect on the date
 3-4     prescribed by the ordinance imposing the tax or changing the rate.
 3-5           SECTION 2.  The importance of this legislation and the
 3-6     crowded condition of the calendars in both houses create an
 3-7     emergency and an imperative public necessity that the
 3-8     constitutional rule requiring bills to be read on three several
 3-9     days in each house be suspended, and this rule is hereby suspended,
3-10     and that this Act take effect and be in force from and after its
3-11     passage, and it is so enacted.