Retail-to-retail purchasing is illegal. Permit holders must buy distilled spirits only from authorized local distributors with proper tax stamps.
It is 8:00 PM on a Friday, the bar is packed, and you just realized you are down to your last bottle of your most popular vodka. The temptation to send a barback running to the nearest liquor store or warehouse club is overwhelming.
Do not do it.
Acquiring inventory for a bar or restaurant in Texas is strictly regulated. Unlike a private citizen who can shop anywhere, a TABC permit holder must follow precise channels to purchase alcohol legally. "Retail to Retail" purchasing is a violation that can put your permit at risk.
1. Who Is Allowed to Buy?
The first rule of compliance is authority. You cannot just hand the company credit card to a random employee.
The Rule: Only the permit holder or a person acting on behalf of and at the direction of the permit holder has the legal authority to purchase alcohol for the venue.
2. Only Buy from Authorized Vendors
You must purchase your inventory from specific tiers of the industry.
No Retailers: You generally cannot purchase alcohol from other retailers like Sam’s Club, Costco, or the grocery store down the street.
The Exception: There are a few complex exceptions, such as buying from a package store permit holder that also holds a local distributor’s permit. Unless you are sure the vendor holds that specific permit, do not buy from them.
3. Distilled Spirits: The "Local Distributor" Rule
For liquor (distilled spirits), the rules are even tighter.
Specific Permit Required: You may only purchase distilled spirits from a package store permit holder who also holds a Local Distributor’s Permit (LP).
Stay Local: With very few exceptions, you are generally required to purchase these spirits within the same county where your business is located.
4. The Critical Role of Tax Stamps
If you look at the bottles behind your bar, they should look different from the ones in your home cabinet.
ID Stamps: All distilled spirits you sell must have ID stamps placed on them by the local distributor. If a bottle doesn't have a stamp, it shouldn't be on your shelf.
No Refilling: You may never refill a stamped bottle with new alcohol. "Marrying" bottles (combining two half-empty bottles into one) is strictly prohibited.
Destroy the Stamp: When a bottle is empty, you must physically destroy the stamp immediately. Scratch it off or deface it so it cannot be reused.
💡 Storm Liquor License Pro-Tip: "Marrying" bottles is one of the most common violations found during inspections. Even if it’s the exact same brand of vodka, you cannot pour the contents of one bottle into another. When a bottle is empty, destroy the stamp and recycle it. When a bottle is low, pour it until it kicks.
Inventory Compliance is Key
Purchasing from the wrong vendor creates a paper trail of non-compliance that is easy for auditors to find. Ensure your purchasing manager knows exactly which vendors are authorized in your county.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. TABC regulations are subject to change.
