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Beverage Tax Supporters Quell Fears of Price Hike

Beverage Tax Supporters Quell Fears of Price Hike

Changes to the state tax code have some margarita lovers fearing a price hike at the bar beginning next year.

Scott Joslove, president of the Texas Hotel & Lodging Association insists that is not the case, adding bars and restaurants only will be required to show customers the different tax break down between beer and wine, and mixed drinks.

“It would simply raise the same amount of tax dollars as was anticipated under the current 14% mixed beverage tax,” Joslove tells KTRH News.  “Instead, it will split that between the mixed beverage tax and the sales tax.”

Joslove says establishments only pay a sales tax on beer and wine, but an additional tax on mixed drinks which cannot be pass down to the consumer.

“If you buy a $10 drink, that's going to include any applicable taxes,” he says. “In certain establishments you're going to see a lowering of prices to accommodate the tax structure so it will be the same amount the consumer paid before.”

 

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