Monitoring the Session

HB 5132

Gates Bill Ends Mixed Drink Taxes For Wineries And Brewers

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Gary GatesRHouse 28
Why it's charged
Carve-out

THE TEXT

…“is only authorized to sell by being the holder of a winery permit or”…

Bill text, introduced version (I)

The tax break goes only to sellers who hold a winery permit or a brewer's license. The caption reads as a general exclusion and never says who gets it.

Carve-out

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to an exclusion for mixed beverage gross receipts tax and mixed beverage sales tax.

Caption from analyzed text · version I.

Summary

Only sellers whose sole authority is a winery permit or brewer’s license. Everyone else keeps paying.

The bill exempts certain mixed drink sales from the state's mixed beverage gross receipts tax and mixed beverage sales tax. It applies only to sellers whose sole authority to sell mixed drinks comes from holding a winery permit or a brewer's license. Starting October 1, 2025, those wineries and brewers would stop paying these two taxes on mixed drinks, while other mixed beverage sellers keep paying.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 13, 2025 and referred to the House Ways & Means committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB5132 · 2025-03-13

SOLD BY

Rep. Gary GatesRHouse 28

ITEM

relating to an exclusion for mixed beverage gross receipts tax and mixed beverage sales tax.

WHAT IT DOES

Only sellers whose sole authority is a winery permit or brewer’s license. Everyone else keeps paying.

The bill exempts certain mixed drink sales from the state's mixed beverage gross receipts tax and mixed beverage sales tax. It applies only to sellers whose sole authority to sell mixed drinks comes from holding a winery permit or a brewer's license. Starting October 1, 2025, those wineries and brewers would stop paying these two taxes on mixed drinks, while other mixed beverage sellers keep paying.

CHARGES

[x] CARVE-OUTanalysis confidence 60%

THE TEXT

…“is only authorized to sell by being the holder of a winery permit or”…

Bill text, introduced version (I)

The tax break goes only to sellers who hold a winery permit or a brewer's license. The caption reads as a general exclusion and never says who gets it.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
FILED UNDER

CORPORATE WELFARE

THE TEXT

…“a permittee that the permittee is only authorized to sell, prepare,”…

Bill text, introduced version (I)

The bill gives a tax exemption to one class of alcohol businesses, wineries and brewers, that other mixed drink sellers do not get.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Gary Gates

Donors

Texas Conservative Majority PAC$273KTexans for Lawsuit Reform PAC$224KTexans for Reasonable Solutions PAC$25K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 30, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Conservative Majority PAC$273,400.00

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223, 101071943.

Texans for Lawsuit Reform PAC$224,000.08

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010390, 101033067, 101068223, 101071943.

Texans for Reasonable Solutions PAC$25,000.00

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223, 101071943.

×

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010390, 101033067, 101068223, 101071943.

×

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 13, 2025

04/07/2025 H Referred to Ways & Means: Apr 7 2025 5:28PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Subjects

Taxation--Alcoholic Beverages

Text

The text as introduced · 289 words

By: Gates
H.B. No. 5132

A BILL TO BE ENTITLED

AN ACT

relating to an exclusion for mixed beverage gross receipts tax and

mixed beverage sales tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 183.021, Tax Code is amended to read as

follows:

(a) A tax at the rate of 6.7 percent is imposed on the gross

receipts of a permittee received from the sale, preparation, or

service of mixed beverages or from the sale, preparation, or

service of ice or nonalcoholic beverages that are sold, prepared,

or served for the purpose of being mixed with an alcoholic beverage

and consumed on the premises of the permittee.

(b) The gross receipts of a permittee received from the

sale, preparation, or service of mixed beverages that the permittee

is only authorized to sell by being the holder of a winery permit or

a brewer’s license are not taxable under this subchapter.

SECTION 2. Section 183.041, Tax Code is amended to add

subsection (c) to read as follows:

(c) The sale, preparation, or service of a mixed beverage by

a permittee that the permittee is only authorized to sell, prepare,

or serve by being the holder of a winery permit or a brewer’s

license is not taxable under this subchapter.

Section 3. Sections 183.021 and 183.041, Tax Code, as

amended by this Act, do not affect tax liability accruing before the

effective date of this Act. That liability continues in effect as if

this Act had not been enacted, and the former law is continued in

effect for the collection of taxes due and for civil and criminal

enforcement of the liability for those taxes.

SECTION 4. This Act takes effect October 1, 2025.