Tax on Beer Ingredients

My buddies and I were having this discussion about taxes on the beer ingredients. We live in Texas and apparently we have been buying ingredients from HB stores and being charged tax on these items. In Texas all unprepared food products are tax free. The ingredients in beer are unprepared food products but we all seem to be charged tax on them. Maybe AHB or other store can chime in and set us right on this.

We are charged tax if we purchase from an on-line-in-state merchant. We are charged tax if we drive down to the corner HBS, we are charged tax constantly. Out of state merchants are always tax free.

garf6819 said:

We are charged tax if we purchase from an on-line-in-state merchant. We are charged tax if we drive down to the corner HBS, we are charged tax constantly. Out of state merchants are always tax free.

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Well technically, even if you buy from an out of state merchant it isn't tax free. Sure, they don't have to collect and remit sales tax on sales to you, but you are supposed to self-assess and pay a use tax on everything taxable that you purchase in another state and use in your state.

Nobody does it, so the states are getting smart about it. If your state's income tax return has a line for use tax, and you put zero but did buy something that use tax uis used on, then you've filed a fradulent income tax return, and the statute of limitations never runs out. If you leave it blank, you didn't file a complete tax return, and the statute never runs out.

Technically we live in Texas where there is no Tax on food items.

damn our tax system is obtrusive and f@cked up.

garf6819 said:

Technically we live in Texas where there is no Tax on food items.

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Ok, I've never bought food in Texas before, so that's cool. BUT buy a pc from NewEgg.com, and you DO owe use tax on it in Texas.

Yea if you buy grain or malt at a grocery store you don't pay tax but the LHBS does charge tax on everything. I does not seem right.

I live in TX and pay no taxes on beer ingredients. Equipment is a different story. If you are being charged on your ingredients in TX, mention it to your LHBS or get a new one!

Neither Austin Homebrew nor my LHBS charge sales tax on anything except non-food items. My last order from AHS was about $30, but I was only charged sales tax on the shipping charges, which still sucks but it was only $0.58.

Buckhuntr said:

Ok, I've never bought food in Texas before

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You should, it's better down here.:cross:

BarleyWater said:

You should, it's better down here.:cross:

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I sense this thread devolving into a Texas BBQ and beer thread....

enderwig said:

I sense this thread devolving into a Texas BBQ and beer thread....

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I know this is going to ruffle some feathers, but Texas BBQ blows.

Yall better believe it... I'll bring the mesquite!

double_e5 said:

I know this is going to ruffle some feathers, but Texas BBQ blows.

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Can I get special banning permission just this once.

What exactly blows about it, is it the awesomeness or the shear superiority that is Texas BBQ.

Oh well yer not invited. But I do have to say Kansas does have some awesome BBQ.

double_e5 said:

I know this is going to ruffle some feathers, but Texas BBQ blows.

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I believe it's the overwhelming awesomeness of some tx bbq that make people from lesser bbq states make statements like these...

Wow, two "awesomeness" references...that must mean it's good.

By the way, just knew I'd get a rise out of you guys. I'm not going to turn the sales tax thread into a BBQ wars thread. I'm sure there's some guys in Memphis and North Carolina that would like a say in this.

Good BBQ may involve beef brisket. Awesome is reserved for pulled pork butt and baby back ribs (best ribs are from Memphis). Bologna does not equate, regardless of what the dimwits around here (Oklahoma) think. KC has some good sauce.

VT has the best BBQ .

There's sales tax on prepared BBQ here too. Oh well gonna start my taxed Scottish Ale .

Memphis Ribs are awesome. "Bubba" served me up a few from his rib hole behind the Peabody Hotel. You gotts go there just for the ribs. But I don't know if you can call that BBQ, I think it deserves its own genre.