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.