Texas Comptroller Affirms Sales Tax Assessment Against Taxpayer for Mixed Beverage Sales

The Texas Comptroller of Public Accounts issued a decision adopting the Administrative Law Judge’s (ALJ) proposed decision, to uphold an assessment for sales tax and gross receipts tax on mixed alcoholic beverages, for tax years 2019-2021. The taxpayer operated a bar and grill, and held a mixed beverage permit. The Comptroller’s office initiated a mixed beverage tax audit. After failing to provide supporting documentation for deduction claims, the Comptroller issued an assessment for additional mixed beverage sales tax (MBST) and mixed beverage gross receipts tax (MBGRT). Upon appeal, the ALJ determined that: 1) as a mixed beverage permittee, the taxpayer ...