Bill > HB3993

This bill modifies the tax rates for vinous liquor (wine) in the Texas Alcoholic Beverage Code by adjusting the alcohol content threshold and corresponding tax rates. Specifically, the bill changes the tax rate for wines with alcohol content from the current threshold of 14 percent to a new threshold of 16 percent by volume. For wines with 16 percent alcohol by volume or less, the tax rate will remain at 20.4 cents per gallon, while for wines with more than 16 percent alcohol by volume, the tax rate will continue to be 40.8 cents per gallon. The bill clarifies that these changes do not affect tax liabilities that accrued before the effective date, which is set for September 1, 2025, meaning the existing tax rules will continue to apply to any taxes due prior to that date. The primary impact of this bill is to slightly modify the tax classification for wines based on their alcohol content, potentially providing a more nuanced approach to taxing different types of wine.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3993