Texas – Expired Grace Period for Alcohol Sales Reporting

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SALT Report 1449 – The Texas Comptroller’s quarterly newsletter, Tax Policy News, discusses the requirements for alcoholic beverage sales reporting.  In 2011, the Texas House passed HB 11 and provided alcohol suppliers a six-month grace period before their first sales reports were due. The grace period ended after the February 2012 report was due on March 25, 2012.

HB 11 requires all brewers, beer manufacturers, distributors, wholesalers, package stores with local distributor’s permits and wineries to file a monthly report of any alcoholic beverage sales made to retailers. The Comptroller will use this data to support its mixed beverage tax and sales tax audit programs.

Alcoholic beverage reports must be filed electronically using the states Retail Inventory Tracking System and include the following information:

  • The number of units of alcohol sold,
  • Individual container size and pack for each unit,
  • Brand name,
  • Type of beverage,
  • Universal Product Code, and
  • Net selling price -Which is the combined amount charged for all items on each line of the report and not the price charged per unit.
A separate alcoholic beverage sales report must be filed for each permit or license issued. Penalties may be assessed if a report does not include all the required information.  All late reports are subject to a $50 penalty under Texas Tax Code Section 151.703(d) along with an additional daily civil penalty of $25 to $2000 under Tax Code Section 151.468(b).
Amended reports are permitted, however an amended report overrides the entire original report, therefore when filing an amended report, the entire report must be resubmitted not a just the portion of the report that has been amended.
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