Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
John S O'Brien, Director, Legislative Budget Board
SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales; providing a penalty.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB576, As Engrossed: a positive impact of $25,819,000 through the biennium ending August 31, 2013.
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from Counties
Probable Revenue Gain/(Loss) from Cities
The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax.
The bill would redesignate Section 151.433, regarding reports by wholesaler and distributors of beer, wine, and malt liquor, as Section 151.461 in new Subchapter I-1, regarding reports by persons involved in the manufacture and distribution of alcoholic beverages, and add new subsections with that subchapter.
The bill would expand who would be required by the Comptroller's Office to file a monthly report on alcoholic beverage sales to retailers to include the holder of a brewer's permit, the holder of a manufacturer's license, and a package store that holds a local distributor's permit.
The bill would revise or expand the definitions, with regard to alcoholic beverage sales, for a distributor, retailer and wholesaler, and add a definition for a brewer.
The bill would provide the Comptroller the authority to inspect and conduct audits to ensure compliance; impose civil and criminal penalties for violations; bring forth a suit to enforce these provisions; and adopt rules to implement these provisions.
The bill would amend Chapter 111 of the Tax Code, regarding collection procedures for state taxes, to require the Comptroller's Office to disclose information from the sales reports required under Section 151.462 of this Code (as amended by the bill).
This bill would take effect September 1, 2011.
The Comptroller of Public Accounts (CPA) estimates the bill's provisions would increase collections from the mixed beverage tax due to an increase in the effectiveness of the audit selection process. Gains would be reflected in both revenue realized per audit and an increase in the percentage of mixed beverage audits yielding revenue. Additionally, in response to enhanced reporting requirements, there would be a revenue gain due to greater voluntary tax compliance. Cities and counties could also expect positive revenue gains. This analysis shows the estimated gains to cities and counties if they were to be appropriated their current share of total mixed beverage revenue.
The number of potential violations and the amount of penalties levied are unknown, the fiscal impact relating to penalty provisions cannot be determined.
Local Government Impact
Cities and counties could expect positive revenue gains. This analysis shows the estimated gains to cities and counties if they were to be appropriated their current share of total mixed beverage revenue.
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission