The Texas Alcoholic Beverage Code regulates every phase of the alcoholic beverage industry in Texas. Do you want to buy, sell, or possess alcohol? The Code has something to say about it. If you want to purchase for resale or sell alcohol to other businesses or ultimate consumers, you must have the appropriate Texas Alcoholic Beverage Commission (“TABC”) permit or license to do so.
Today, we are focusing on one of the most common retail-tier Texas liquor licenses: the mixed beverage permit and what it means for your Texas business.
A quick note about “permit” vs. “license”... these terms essentially mean the same thing, and we use them interchangeably on the blog. Generally speaking, the Code uses the term “license” when granting rights associated with beer and the term “permit” when granting rights associated with wine, distilled spirits, and everything else.
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Mixed Beverage Permit Basics |
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TABC Abbreviation |
MB |
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State Fee & Surcharge |
$5,300 |
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Type of Alcohol Authorized |
Everything |
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Sell to |
Ultimate Consumers |
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Buy from |
In-County Local Distributors (Distilled Spirits) Wholesalers (Wine) Distributors (Beer) |
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Related Secondary Permits |
Food & Beverage Certificate Late Hours |
What can you sell?
The mixed beverage permit authorizes its holder to sell all types of alcoholic beverages, including wine, beer, and distilled spirits. The drinks you sell can be in the container in which you purchased them. Or, you can mix and serve them up in your own recipes and combinations, subject to the TABC rules against selling alcoholic beverages in a way that encourages excessive consumption or violates the TABC’s rules regarding on-premises promotions.
Who can purchase what you’re selling?
An ultimate consumer who intends to enjoy the alcoholic beverages at your premises. The holder of a retail-tier Texas liquor license is generally prohibited from selling alcohol to anyone other than an ultimate consumer.
The mixed beverage permit lets you invite people into your restaurant or bar and serve them alcoholic beverages to enjoy at your location. This permit alone has nothing to say about food, so your decision to offer food with drinks (or not) is irrelevant.
What about alcohol to go, you ask? As of May 2021, this option is available only to mixed beverage permit holders who also hold a Food and Beverage Certificate. More on that in our Alcohol to Go blog.
Who does that exclude?
We just covered who CAN purchase alcohol from you when you hold a mixed beverage permit. It’s also important to mention who CANNOT. That group includes:
Anyone in the manufacturing tier
That means wineries, breweries, and distilleries.
Anyone in the wholesale/distributor tier
Any other retailer
No bars, restaurants, grocery stores, etc.
Do you own several bars or restaurants?
You absolutely cannot sell or transfer alcoholic beverages between them (unless you are closing a location and file the appropriate paperwork with the TABC).
Do you make a particularly tasty margarita mix?
If it has alcohol in the recipe, you can only sell that to people -- not other businesses.
It goes without saying that all sales must always comply with all of the restrictions found in the TABC Code and Rules, including the prohibitions against sales to minors and intoxicated persons and the prohibition against practices that encourage the excessive consumption of alcoholic beverages.
Who are your vendors?
Holding the mixed beverage permit authorizes you to purchase alcoholic beverages for resale, but only from certain members of the alcoholic beverage industry.
Mixed beverage permit holders can only purchase distilled spirits from someone who holds a TABC “Local Distributor” permit.
A local distributor is basically a liquor store that also has “Local Distributor” status granted by the TABC. Not only are you limited to purchasing your tequila, vodka, and other liquor from a Local Distributor, but you also have to go with one who is in your county. (Don’t worry. If there are literally no Local Distributors in your county, there is an exception. You can go to the next closest county.)
Wine and beer (and other “malt beverages”) are a little simpler. Generally, you can purchase malt beverages, including beer, ale, and malt liquor, from the holder of a distributor’s license. You can buy everything else from a wholesale permit holder. Many companies hold both and can offer you everything except distilled spirits.
When can you sell alcoholic beverages?
A mixed beverage permit holder can generally sell alcoholic beverages between 7 a.m. and midnight. You get an extra hour on Saturday night/Sunday morning, when you can stay open until 1 a.m., but you can’t start selling on Sunday morning until 10 a.m., at which time you can only sell alcohol with food until noon.
If your city allows “late hours” sale of alcoholic beverages, and you also get a late hours permit, you can stay open until 2 a.m. every night of the week. For more details on hours of operation, visit our blog, Understanding the TABC’s Authorized Hours of Operations for On-Premises Retailers.
Where can you open your business?
There are two big categories of location restrictions to keep in mind when scoping out the best spot for your new bar or restaurant concept: Wet and Dry Areas and City-Specific Requirements.
Wet & Dry Areas
We generally describe areas in which the sale of alcohol is prohibited or restricted as “dry,” and areas where it is allowed as “wet”. The whole of Texas is actually “wet” for all sales of alcohol. But when Texas voters repealed the statewide “dry law” in 1935, that opened up the field for local governmental units to choose via “local option election” to be wet or dry.
Areas can be “wet” for some types of sales but dry for others (example: off-premises sales are okay, but sales for on-premises consumption are not). To complicate it further, the city, county, and precinct can each elect a different “wet/dry status”.
Rather than trying to figure out the wet/dry status on your own, we suggest calling the county clerk. This is one of our first steps we take when helping someone get an alcoholic beverage permit. The clerk should be able to tell you, or direct you to someone who can tell you, whether all or part (a precinct, for example) of the county is dry and to what extent. While you’re at it, ask the clerk about their process for certifying TABC applications. You will need to get their signature on your TABC application. Most counties will perform this task for you the same day and only charge a nominal processing fee.
City-Specific Requirements
Next, call the city secretary and inquire about your city’s wet/dry status. Again, this person should be able to answer this question for you or direct you to someone who can.
Like the county, you will need the city to sign off on your TABC application. Calling the city may be the most important step you take in conducting your due diligence associated with selecting your location. The city will be able to help you identify whether any number of issues might hinder the processing of your TABC application, including not only whether the location is wet for alcoholic beverage sales but also whether your location has the requisite zoning for your concept, whether you must have a certificate of occupancy issued in the applicant’s name prior to certification, and other city-specific issues.
Not in the city limits? Then you can skip this step. You’ll only need the county’s certification. Follow the instructions above to call the county clerk and confirm their process for certifying TABC applications.
Do you need any other TABC Liquor Licenses?
The two secondary licenses your establishment may need, in addition to the mixed beverage permit, are a food and beverage certificate and the late hours permit. These secondary licenses offer your business some additional benefits, but those come with additional requirements.
Food and Beverage Certificate
The most common reason for holding a food and beverage certificate is because the wet/dry status of your location requires it.
As of May 2021, you may want to hold a food and beverage certificate so that you can continue selling alcohol to go. There are other benefits to holding a food and beverage certificate, including avoiding the requirements of holding a conduct surety bond or of giving notice to nearby residents in certain circumstances.
Whatever your reason for applying for a food and beverage certificate, you should know that maintaining a food and beverage certificate requires (1) that you essentially have a commercial kitchen (2) you always offer food service with multiple entrees (prepared and consumed on the premises) when you are selling alcohol, and (3)that the sale of alcoholic beverages are 60% or less of your total receipts.
Late Hours
If your city allows “late hours'' sale of alcoholic beverages, then getting a late hours permit will allow you to sell mixed beverages between midnight and 2 a.m. Without the permit, you’re restricted to selling alcoholic beverages during the standard allowable hours of operation described above.
Now that you know what a mixed beverage permit means for your Texas business, learn more about the types of permits bars and restaurants need for serving alcohol in Texas.
