New fee law for local governments from 88th Texas legislative session
Local government officials including county clerks, tax assessor-collectors, and city secretaries
A new law approved by the 88th Texas Legislature (Senate Bill 577) removes the ability of local governments with a public health district to collect a fee from businesses that are issued an alcoholic beverage license or permit in their jurisdiction.
Existing law in Texas Alcoholic Beverage Code Sections 11.38 and 61.36 authorizes the governing body of an incorporated city or town and the commissioners court of a county to collect a fee for each TABC license or permit issued within their jurisdictional boundaries. That fee could amount to one-half of the state fee.
The new law created by Senate Bill 577 adds the following provision to the Texas Health and Safety Code and goes into effect on Sept. 1, 2023:
- Texas Health and Safety Code Section 437.01235. FEES FOR PREMISES WITH ALCOHOLIC BEVERAGE PERMIT OR LICENSE. A county or a municipality with a public health district that requires the payment of a fee for issuing or renewing a permit under Sec. 437.012 or 437.1023 for a premises permitted or licensed by the Texas Alcoholic Beverage Commission may not also charge a fee under Section 11.38 or 61.36, Alcoholic Beverage Code, for an alcoholic beverage permit or license issued for premises located in the county or municipality.
This new law does not impact TABC’s operations or processes — and does not charge TABC with enforcing it. Each unit of local government is responsible for determining its compliance with the new law.