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    Home > Membership > Government Relations > TX Legislative Session Info

    TRA Achieves Positive Results for the Industry

    The 83rd Regular Session of the Texas Legislature ended May 27 and the Texas Restaurant Association was instrumental in passing a number of measures that will benefit the restaurant industry.

    HB 3575: Mixed Beverage Gross Receipts Tax Cut by Rep. Hilderbran

    Effective January 1, 2014, the 14% mixed beverage gross receipts tax is cut to 6.7% and an 8.25% sales tax is imposed the sale or service of mixed beverages. The combined taxes are revenue neutral. Shifting the collection of over half the tax revenue as a sales tax, makes the tax on mixed beverages much more transparent to the customer and moves us forward in our goal of equity between those selling mixed beverages and those selling beer and wine only. Efforts will be made to fully eliminate the gross receipts tax in future legislative sessions.

    HB 500: Temporary Reduction of Franchise Tax by Rep. Hilderbran

    The 0.5% franchise tax on retail trade is reduced to 0.4875% for 2014 and, if revenues permit, to 0.475% for 2015. Rates revert back to0 .5% after the 2015 tax year. In addition to the 70%, cost of goods sold and compensation elections that businesses now have, starting with the 2014 tax year they will have the option of electing to take a one million dollar deduction off of total revenues to compute taxable margin.

    HB 5: Education Reform by Rep. Aycock

    This creates a foundation plan of 22 credits which includes 5 electives. All students will have a personal graduation plan developed with their parents and local educators that promotes college and workforce readiness. School districts may partner with community colleges and industry to develop rigorous courses that address workforce needs, provide technical training and count towards graduation.

    HB 2818: Beer & Wine Permit by Rep. R. Sheffield

    Where the voters have approved the off-premise sale of beer and wine and the sale of mixed beverages, operators will now be able to apply for a permit for the on-premise sale of beer and wine. This permit is less expensive than a mixed beverage permit and is not subject to the mixed beverage gross receipts tax.

    SB 515: Brew Pub Beer Distribution by Sen. Eltife

    Brew pubs will be allowed to place a limited amount of beer into distribution to other retailers.

    The only issue that was not addressed this session related to changing the limits on who can sell liquor to restaurants and bars. These bills no advance to the Governor for signature by June 20. Thank you to everyone that supported our efforts with calls, emails, letters and visits to your elected officials!

    SB 950: Wines Purchased at Auction by Sen. Carona

    Among other things, the bill allows rare or vintage wines purchased at auction and registered with the TABC to be purchased from those authorized to sell wine to retailers.

    HB 2806: Credit Law by Rep. Geren

    Places in the statute current TABC practice to allow four business days after the due date for the receipt of the payment for the purchase of distilled spirits and wine purchased on credit.


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