By: Wentworth S.B. No. 1750 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to the authority of a county to impose a tax on certain 1-2 mixed alcoholic beverages and to the use of the resulting revenue 1-3 for law enforcement purposes. 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. COUNTY 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 county by order of the 1-16 commissioners court may impose a tax at the rate of one percent on 1-17 the gross receipts of a permittee received from the sale, 1-18 preparation, or service of mixed beverages within the county or 1-19 from the sale, preparation, or service of ice or nonalcoholic 1-20 beverages that are sold, prepared, or served for the purpose of 1-21 being mixed with an alcoholic beverage and consumed on the premises 1-22 of the permittee within the county. 2-1 (b) The tax authorized by this chapter does not apply to the 2-2 gross receipts of a permittee unless the tax imposed by Chapter 2-3 183, Tax Code, also applies to the gross receipts. 2-4 (c) The credits and refunds provided by Section 183.055, Tax 2-5 Code, also apply to the tax authorized by this chapter. 2-6 Sec. 207.003. COLLECTION OF TAX. (a) A permittee subject 2-7 to the tax imposed under this chapter shall: 2-8 (1) collect the tax for the benefit of the county; and 2-9 (2) report and send the taxes collected to the county 2-10 as provided by the order imposing the tax. 2-11 (b) A county by order may prescribe penalties, including 2-12 interest charges, for failure to keep records required by the 2-13 county, to report when required, or to pay the tax when due. 2-14 (c) The attorney acting for the county may bring suit 2-15 against a person who fails to collect a tax under this chapter and 2-16 to pay it to the county as required. 2-17 (d) A county by order may allow a permittee who is required 2-18 to collect a tax under this chapter to retain a percentage of the 2-19 amount collected and required to be reported as reimbursement to 2-20 the permittee for the costs of collecting the tax. The county may 2-21 provide that the permittee may retain the amount only if the 2-22 permittee pays the tax and files reports as required by the county. 2-23 Sec. 207.004. DEPOSIT OF TAX REVENUE. (a) A county shall 2-24 deposit revenue from a tax imposed under this chapter in a special 2-25 fund in the county treasury to be administered by the commissioners 2-26 court. 3-1 (b) The commissioners court may use money in the fund only 3-2 for law enforcement and corrections purposes. 3-3 Sec. 207.005. EFFECTIVE DATE OF TAX. A tax imposed under 3-4 this chapter or a change in the tax rate takes effect on the date 3-5 prescribed by the order imposing the tax or changing the rate.