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Lawmakers approve sales tax on mixed drinks

Reported by: Henry Ramos
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Updated: 8/02/2013 9:26 pm
Beginning January 2014 when you order a mixed drink at a restaurant it's going to be a little stiffer. Governor Perry put his signature on legislation that would tax mixed drinks at
restaurants. 

Fuzzy's General Manager Armando Casas said, "It is more going to affect the consumer."

Right now you only pay the tax on beer and wine. State lawmakers passed a bill that would add an 8.25 percent tax on mixed drinks ordered at a restaurant.  

Co-Owner of Orlando's and Caprock Cafe and President of the Lubbock Restaurant Association,David Cea, said proprietors will now have some options.

"What the state is trying to do is make this a more transparent tax to let the customer know that the tax has always been there," he said. "Businesses will now be able to choose to continue to eat that tax and pay that tax out of their pocket, or they can pass that tax onto the customer, or they can pass it on in the form of an add on to their bill, or they can pass it on to the customer by increased prices in alcohol."

Casas said Fuzzy's doesn't pass on the tax to the customer.

"The consumer more the anything is going to feel it because we already get taxed, but we don't pass it on to the customer."

The sale tax is hoping to generate $21 million for the state. The bill also reduces the liquor tax restaurants pay from 14 percent to 6.7 percent. It's expected to generate $6.1 million  in revenue for local cities and counties.
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