The Comptroller of Public Accounts has issued a letter to Licensed Manufacturers of Beer and Ale and a letter to Licensed Brewers of Ale and Beer. Both explain that “[s]ales of ale [and beer] to ultimate consumers are subject to sales and use tax,” so brewers and manufacturers must obtain a Texas Sales and Use Tax Permit. Sales and sales tax obligations for distillers in Texas were earlier this year.
Effective June 14, 2013, “brewers whose annual combined production of ale and beer under a manufacturer’s license for a single brewery location does not exceed 225,000 barrels a year may sell beer to ultimate consumers at that location.” This is pursuant to Senate Bill 518.
Licensed breweries and manufacturers in Texas may sell no more than 5,000 barrels per year to ultimate consumers. That’s 5,000 barrels total, not 5,000 of beer and 5,000 of ale.