If you're considering opening a business involving the sale of alcoholic beverages, it's important to understand the specific regulations and restrictions applicable to your location. One often overlooked restriction, particularly in certain areas of Texas, pertains to the alcohol by volume (ABV) content of wine that can be sold. In this blog, we will explore the details of ABV restrictions and discuss how they can impact your business plan
TABC Permits that Authorize Wine Sales
When it comes to selling wine in Texas, businesses have access to a range of retail permit options. One such permit is the Mixed Beverage Permit (MB), which grants establishments the authority to sell various alcoholic beverages, including wine, for on-premises consumption. This permit is especially well-suited for bars, restaurants, and other venues where patrons can savor wine alongside other spirits.
In addition to the Mixed Beverage Permit, the Wine and Beer Retailer's Permit (BG) also allows for the sale of wine, malt beverages, and ale, both for on and off-premises consumption. This permit caters to establishments seeking to provide a diverse selection of wines and malt beverages to their clientele. To learn more about different permit types and those that authorize the sale of alcoholic beverages for on-premises consumption, we encourage you to explore our TABC Strategy Videos and Retail Liquor Licenses Summary, available free of charge on Storm Liquor License.
Furthermore, for businesses exclusively focused on retail sales of wine for off-premises consumption, the Wine Only Package Store Permit (P) provides the necessary authorization. It is crucial for businesses to carefully assess their specific needs and operations when choosing the appropriate retail permit, ensuring full compliance with Texas laws and regulations. By doing so, they can successfully offer an exceptional wine experience to their valued customers.
The Local Option Election
In areas where on-premises consumption is limited to beer and wine sales, it is important to be aware of ABV restrictions. The Wine and Malt Beverage Retailer's Permit typically allows the sale of wine up to 17% ABV, but this allowance depends on whether it has been authorized through a Local Option Election conducted by local citizens.
Local Option Elections are held at the city, county, or precinct level to determine the permitted types of alcohol sales. The most recent election outcome takes precedence. For example, if a city only permitted beer and wine sales in 2015, but the county approved the sale of all alcoholic beverages in 2018, the county's decision supersedes the city's prior ruling (at least within the county's jurisdiction). This intricate framework of regulations results in varying permissions for specific locations.
The Texas Secretary of State has more helpful information about Local Option Elections.
When it comes to wine, here's what you need to know:
If a Local Option Election has taken place after September 1, 1999, authorizing the sale of wine for on-premises consumption, there are no ABV restrictions on the wine you can sell.
If no such election has been held or the election occurred before September 1, 1999, your wine sales are limited to wines with 14% ABV or less.
Understanding these regulations will help ensure compliance and enable you to make informed decisions regarding the sale of wine in your area.
Navigating the Regulations
Navigating these regulations can be a complex process, but fortunately, you don't have to do it alone. When it comes to understanding the specific ABV restrictions in your area, reaching out to your county clerk's and city secretary's offices is a valuable step. These offices can provide you with information about the applicable ABV limitations and any Local Option Elections that may affect your business.
However, it's important to be aware that mistakes can sometimes occur at the city or county level. Interpreting the outcomes of Local Option Elections and understanding their implications can also pose challenges. To mitigate potential issues, it's helpful to familiarize yourself with the process for determining authorized liquor licenses in specific areas. This knowledge will help ensure that you receive accurate information from the city or county regarding available permits and that your Required Certifications form (or AIMS certifications) is completed correctly.
If you have already obtained certifications from both the city and county, it is essential to thoroughly review the provided forms. Completing these forms accurately can be confusing, so don't hesitate to ask questions and seek clarification from the city or county. Taking the time to ensure that the correct standards are applied will help you navigate the permitting process smoothly and in compliance with Texas laws and regulations.
Verifying Permit Details
If your permit has already been issued, you can use the TABC's public inquiry page to look up your location and determine the applicable ABV threshold for your permit. However, keep in mind that the accuracy of the information relies on the details provided by the city and county during the initial application process.
When using the TABC public inquiry system to search for your location, it may require a few attempts to yield results. The system's search functionality may not generate a result if the information entered does not exactly match the records in their system. For instance, if your address in the TABC system includes "FWY," but you search using "Freeway," it may not locate your location.
Once you locate your establishment within the system's results, you will have access to your basic permit information. For instance, I conducted a search for a Central Market location in San Antonio, and the following record was displayed.
Once you access the permit record, you will find essential details, including the trade name, location address, mailing address, and permits held. In the right-hand column, you will come across the "Wine Percent" section, indicating the relevant percentage, which can either be 14% or 17%. This information clarifies the specific alcohol by volume (ABV) threshold applicable to your permit.
Impact on Wine Sales
What does this mean for your wine inventory and which wines would be affected? Let's take a closer look. First, let's consider the wines that are legal, regardless of location, with an ABV of 14% and under. These typically include popular varieties such as Riesling, Sauvignon Blanc, Pinot Grigio/Pinot Gris, Chardonnay, Gamay/Beaujolais, Pinot Noir, Grenache/Garnacha, Merlot, Tempranillo, and Prosecco, to name a few.
On the other hand, if your area falls within the 14%-17% ABV range restriction, there are specific wines that may be prohibited depending on your location. These wines, which tend to have a slightly higher alcohol content, include examples such as Zinfandel, Shiraz/Syrah, Malbec, Cabernet Sauvignon, Petite Sirah/Durif, Amarone della Valpolicella, and Port wines. It's essential to consider the potential limitations imposed by ABV restrictions and ensure that your wine inventory aligns with the regulations specific to your area.
Understanding the ABV restrictions that apply to your wine sales is essential for planning and operating a successful business. By familiarizing yourself with the local regulations, seeking clarification from relevant authorities, and advocating for accurate application processing, you can ensure compliance and offer customers a diverse selection of wines. Remember, only a small percentage of permits are limited to the 14% threshold, so it's crucial to fully comprehend the implications for your business.
Still have questions about how to get a Texas liquor license? Book a consultation with Ashley.
Disclaimer: This information is intended for educational purposes only. Nothing in our articles or on our website is legal advice and should not be taken as such. Please address all legal questions to your counsel.
