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TABC - Excise Tax Enforcement – Summary Suspension of License/Permit

July 15, 2019 10:53 AM | Anonymous

INDUSTRY NOTICE

July 15, 2019

Excise Tax Enforcement – Summary Suspension of License/Permit

To: Holders of a manufacturer’s license, brewer’s permit, winery permit, distillers and rectifier’s permit, distributor’s license, wholesaler's permit, general class B wholesaler's permit, or brewpub license.

On September 1, 2019, TABC will begin actively enforcing existing laws that suspend a licensed/permitted business’s ability to operate while that business is delinquent on its excise tax payments or reports. This action is necessary to address a growing number of excise tax delinquencies and to ensure future compliance.


The Law

Certain license/permit holders in the manufacturing and distributing tiers of the alcoholic beverage industry are statutorily required to make monthly excise tax payments on the “first sale” of certain alcoholic beverages (Texas Alcoholic Beverage Code, Chapters 201 and 203). These licensees/permittees must also submit monthly excise tax reports to TABC (Texas Alcoholic Beverage Code §§ 201.06, 201.48, and 203.10).


Summary Suspension Process

TABC will initiate a process to summarily suspend a license/permit if the holder is delinquent oh excise tax payments and/or has unfiled excise tax reports, or defaults on an executed agreement to repay delinquent taxes (Texas Alcoholic Beverage Code, §§ 201.075, 201.53, and 203.13). If a licensee/permittee remains delinquent or in default after initial notifications from TABC:

  • TABC issues an Order of Summary Suspension to the licensee/permittee.
  • Licensee/permittee has 3 days to cure all deficiencies cited in the Order.
  • If the licensee/permittee has not cured all such deficiencies on the 3rd day after receiving the Order, TABC will suspend the license/permit without a hearing.
  • TABC will lift the suspension only when the licensee/permittee submits all reports and tax payments that are due.

Follow These Steps to Keep Your Business in Compliance

  • Excise tax reports and taxes are due and payable on the 15th of the month.
  • Excise tax reports are due even if no taxes are due.
  • TABC grants a 2% discount on the taxes due if the report and payment are submitted before the 15th of the month.


If you have any questions or need assistance, you may contact TABC in writing at P.O. Box 13127, Austin, TX 78711, Audit & Investigations at 512-206-3300, or by e-mail at excisetaxsummarysuspension@tabc.texas.gov.

CONTACT US

816 Congress Avenue, Suite 940,
Austin, TX 78701

Amber Hausenfluck, Government Affairs: (512) 617-4523
Daniel Whitehead, Administration: (804) 775-1959 

info@texasdistilledspirits.org
www.texasdistilledspirits.org

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