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Mixed Beverage Sales Tax Means Increased Price for Consumers

A new state tax may put a damper on your happy hour. The mixed beverage sales tax went into effect on January 1st.
A new state tax may put a damper on your happy hour.

The mixed beverage sales tax went into effect on January 1st.

It means consumers must may an eight point two five percent tax on drinks sold in bars and restaurants with a liquor license. 

"We just received a letter in the mail, I think it was late November, stating that the Texas Comptroller was going to add a 8.25 percent mixed beverage sales tax on each drink," Angela Corpening, Owner of Golden Light Cantina said.  

The Texas Comptroller's website states this includes, distilled spirits, beer, ale and wine.

Places that do not have a liqour license and only serve beer and wine are not effected.  

At Golden Light, they simply increased the price of their drinks. It's 25 cents more for drinks under three dollars and 50 cents for drinks over three dollars, but at some places, you might simply see the tax on your receipt.

Businesses had two choices. to increase prices, or simply add the tax to your bill.

All the revenue goes back to the state. 

The law comes after Texas cut the tax on businesses who buy the alcohol but imposed this new tax on consumers.

"The IRS, your know, there's new changes every year and as a employer you have to be ready for them, and abide by the laws, and you know, that's what we've done here at La Fiesta," Jeff Bara, Public Relations Manager with La Fiesta Grande said. 

We spoke with a number of restaurants around town. Many had lingering confusion about the new law and what it will mean going forward.

"I just don't know what's going to, you know I don't know how it's going to be paying it, but I don't, not feeling to stressed about it. I mean, I think it's something we, it's out of our control and so we just have to do it," Corpening said. 

The case for businesses and consumers alike, it's a new reality for 2014, right on your receipt.

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