PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 1. CENTRAL ADMINISTRATION
SUBCHAPTER A. PRACTICE AND PROCEDURES
DIVISION 1. PRACTICE AND PROCEDURES
The Comptroller of Public Accounts adopts amendments to §1.6, concerning service of documents on parties, without changes to the proposed text as published in the August 2, 2024, issue of the Texas Register (49 TexReg 5751). The rule will not be republished. The amendments update the mailing address of the Administrative Hearings Section, which has moved to Suite 14.301 of the George H.W. Bush Building at 1801 Congress Ave., Austin, Texas 78701.
The comptroller did not receive any comments regarding adoption of the amendment.
The amendments are adopted under Tax Code, §111.002 (Comptroller's Rules, Compliance, Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2 (State Taxation).
This section implements Tax Code, §111.00455 (Contested Cases Conducted by State Office of Administrative Hearings).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 11, 2024.
TRD-202404838
Jenny Burleson
Director, Tax Policy
Comptroller of Public Accounts
Effective date: October 31, 2024
Proposal publication date: August 2, 2024
For further information, please call: (512) 475-2220
The Comptroller of Public Accounts adopts amendments to §1.10, concerning requesting a hearing, without changes to the proposed text as published in the August 2, 2024, issue of the Texas Register (49 TexReg 5752). The rule will not be republished. The amendments update the mailing addresses for the Audit Division and the Administrative Hearings Section, both of which moved to the George H.W. Bush Building at 1801 Congress Ave., Austin, Texas 78701.
The comptroller did not receive any comments regarding adoption of the amendment.
The amendments are adopted under Tax Code, §111.002 (Comptroller's Rules, Compliance, Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2 (State Taxation).
This section implements Tax Code, §111.00455 (Contested Cases Conducted by State Office of Administrative Hearings).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 11, 2024.
TRD-202404839
Jenny Burleson
Director, Tax Policy
Comptroller of Public Accounts
Effective date: October 31, 2024
Proposal publication date: August 2, 2024
For further information, please call: (512) 475-2220
The Comptroller of Public Accounts adopts amendments to §1.35, concerning motion for rehearing, without changes to the proposed text as published in the August 2, 2024, issue of the Texas Register (49 TexReg 5753). The rule will not be republished. The amendments implement Senate Bill 903, 87th Legislature, 2021 and House Bill 2080, 87th Legislature, 2021.
Subsection (a) is amended to implement Senate Bill 903, which enacted Tax Code, §111.106 (Tax Refund: Notice of Intent to Bypass Hearing). Effective September 1, 2021, a taxpayer who files a notice of intent to bypass the refund hearing, and who either participates in a conference with a designated comptroller employee or is excused from participation in such a conference by the comptroller, may file suit in district court. The last sentence in subsection (a), providing that a motion for rehearing is a prerequisite for a tax refund lawsuit, is therefore an incomplete statement of the law and is deleted.
Subsection (b) is amended to implement House Bill 2080, which enacted Tax Code, Chapter 112, Subchapter E, (Suit After Redetermination). New paragraph (3) references Tax Code, §112.201(a) and states that a motion for rehearing of a redetermination must identify the disputed amounts associated with the grounds of error raised. Current paragraph (3) is renumbered as paragraph (4) and non-substantive changes are made to mirror the syntax of the new subsection.
The comptroller did not receive any comments regarding adoption of the amendment.
The amendments are adopted under Tax Code, §111.002 (Comptroller's Rules, Compliance, Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2 (State Taxation).
This section implements Tax Code, §111.106 (Tax Refund: Notice of Intent to Bypass Hearing) and Tax Code, §112.201 (Suit After Redetermination).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 11, 2024.
TRD-202404840
Jenny Burleson
Director, Tax Policy
Comptroller of Public Accounts
Effective date: October 31, 2024
Proposal publication date: August 2, 2024
For further information, please call: (512) 475-2220
SUBCHAPTER HH. MIXED BEVERAGE TAXES
The Comptroller of Public Accounts adopts amendments to §3.1001, concerning mixed beverage gross receipts tax, without changes to the proposed text as published in the September 6, 2024, issue of the Texas Register (49 TexReg 6969). The rule will not be republished.
The comptroller amends this section to reflect the changes in Alcoholic Beverage Code, §§28.1001 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.01 (Authorized Activities), 32.15 (Removal of Beverages from Premises), 32.155 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.17 (Cancellation of Suspension of Permit; Grounds), and 57.01 (Authorized Activities), made by House Bill 1024, 87th Legislature, 2021, effective May 12, 2021. The comptroller also amends the section throughout to implement House Bill 1545, 86th Legislature, 2019, effective September 1, 2021, which updated the definition of "permittee" in Tax Code, §183.001 (Definitions) and eliminated the distinction between ale, beer, or malt liquor which are now referred to as a malt beverage. This change is made throughout the section. The comptroller further amends this section throughout to add statutory citations.
The comptroller amends subsection (a)(2) by adding clarification language to define a bad debt as uncollectible. In addition, the comptroller moves language related to the requirements for claiming a bad debt to subsection (n) to be consistent with Tax Code, §183.027 (Credits and Refunds for Bad Debts). The comptroller amends subsection (a)(3) to delete language related to acceptable payment methods to purchase alcoholic beverages. Only distributors, manufactures, and retailers have restrictions under the Alcoholic Beverage Code related to acceptable types of payments. The comptroller also amends subsection (a)(8) to update the definition of the term "permittee." House Bill 1545 consolidated, repealed, and created certain licenses and permits to streamline the permitting process. In addition, the comptroller amends language to be consistent with the definition of Permittee and Licensee as defined in the Alcoholic Beverage Code §1.04 (11) and (16) (Definitions).
The comptroller deletes subsection (b)(4), a graphic related to separate tax disclosure statements, as it is available on the comptroller's website.
The comptroller deletes subsection (c)(1)(I), to delete language related to temporary permits, as only one temporary permit exists within the definition of permittee based on changes made from House Bill 1545. The comptroller renumbers all subsequent paragraphs accordingly.
The comptroller amends subsection (e) to delete redundant language for a holder of a temporary permit to report and remit mixed beverage gross receipts tax as they are included in the definition of "permittee" provided by subsection (a)(8).
The comptroller amends subsection (f) to add new paragraph (8) to include alcoholic beverages sold by a permittee for off-premises consumption in the list of items excluded from mixed beverage gross receipts tax. House Bill 1024 amended the Alcoholic Beverages Code to allow permittees to sell alcoholic beverages for off-premise consumption. Only alcoholic beverages sold for on-premises consumption by a permittee are taxed under Tax Code, §183.021 (Tax imposed on Gross Receipts of Permittee from Mixed Beverages). Because these beverages are for off-premises consumption, the comptroller interprets this to mean these sales are not subject to the mixed beverage gross receipts tax. The comptroller renumbers all subsequent paragraphs accordingly.
The comptroller amends subsection (n)(1) to add new subparagraphs (A) through (C) with language moved from subsection (a)(2). The new subparagraphs are consistent with Tax Code, §183.027.
The comptroller amends subsection (o)(3), to add average pour figures the comptroller may accept for malt beverages and wine in the absence of records or evidence made available for audit. These presumptions are recognized and accepted in the depletion-analysis methodology by the comptroller for auditing mixed beverage taxpayers. See e.g., Comptroller Decision No. 117,284 (2021).
The comptroller did not receive any comments regarding adoption of the amendments.
The comptroller adopts the amendments under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture) which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2 (State Taxation).
The amendments implement Tax Code, §183.021 (Tax Imposed on Gross Receipts of Permittee from Mixed Beverages) and Alcoholic Beverage Code, §§28.1001 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.01 (Authorized Activities), 32.15 (Removal of Beverages from Premises), 32.17 (Cancellation of Suspension of Permit; Grounds), 32.155 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 57.01 (Authorized Activities).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 10, 2024.
TRD-202404818
Jenny Burleson
Director, Tax Policy
Comptroller of Public Accounts
Effective date: October 30, 2024
Proposal publication date: September 6, 2024
For further information, please call: (512) 475-2220
The Comptroller of Public Accounts adopts amendments to §3.1002, concerning mixed beverage sales tax, without changes to the proposed text as published in the September 6, 2024, issue of the Texas Register (49 TexReg 6974). The rule will not be republished.
The comptroller amends the section to reflect the changes in Alcoholic Beverage Code, §§28.1001 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.01 (Authorized Activities), 32.15 (Removal of Beverages from Premises), 32.155 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.17 (Cancellation of Suspension of Permit; Grounds), and 57.01 (Authorized Activities), made by House Bill 1024, 87th Legislature, 2021, effective May 12, 2021.
The comptroller amends subsection (a) to delete references to definitions defined in other statutes and rules and adds those definitions from those references to enhance readability. The comptroller amends paragraph (1) to add the definition of an alcoholic beverage as defined in Alcoholic Beverage Code, §1.04(1) (Definitions). The comptroller amends paragraph (2) to add the definition of complimentary alcoholic beverage as defined in §3.1001 (Mixed Beverage Gross Receipts). The comptroller amends paragraph (3) to add the definition of a governmental entity as defined in Tax Code, §151.309. The comptroller amends paragraph (5) to define the term permittee as defined in Tax Code, §183.001(b)(1) (Definitions).
The comptroller amends subsection (b) to replace the reference to §3.1001(f)(7) (Mixed Beverage Gross Receipts Tax) with §3.1001(f)(8). This implements House Bill 1024, which relates to alcoholic beverages sold by a permittee for off-premises consumption. These types of beverages are not subject to mixed beverage taxes as they are not consumed on premises as required by Tax Code, §183.041 (Tax Imposed on Sales of Mixed Beverages and Related Items). The change is consistent with proposed amendments to §3.1001 of this title.
The comptroller rearranges subsection (c)(5) related to bad debts for readability.
The comptroller deletes subsection (d)(4), a graphic related to examples of disclosure of tax statements, as it is available on the comptroller's website.
The comptroller amends subsection (f)(6) by deleting reference to obsolete mixed beverage permits and adding general language of permit, license, or certificate.
The comptroller did not receive any comments regarding adoption of the amendments.
The comptroller adopts the amendments under Tax Code, §111.002 (Comptroller Rules; Compliance; Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2 (State Taxation).
The amendments implement Alcoholic Beverage Code, §§28.1001 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.01 (Authorized Activities), 32.15 (Removal of Beverages from Premises), 32.155 (Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption), 32.17 (Cancellation of Suspension of Permit; Grounds), and 57.01 (Authorized Activities).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 10, 2024.
TRD-202404819
Jenny Burleson
Director, Tax Policy
Comptroller of Public Accounts
Effective date: October 30, 2024
Proposal publication date: September 6, 2024
For further information, please call: (512) 475-2220