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Cash and Credit Law

Texas law requires cash transactions for malt beverages and includes certain requirements for businesses buying distilled spirits and wine on credit. All alcohol sellers must report retailers that are delinquent in paying for the alcohol purchased. We encourage you to learn more about these laws below.

The easiest way to submit your cash and credit law reporting is through the Cash and Credit Law Automated System.

Cash Law for Malt Beverages

Distributors in Texas can accept cash or cash equivalent (e.g., checks) only when selling malt beverages to retailers. This law applies to the following license and permit types:

  • Distributor’s License (BB), Branch Distributor's License (BC), or Brewer’s License (BW) with a Self-Distribution License (SD) selling malt beverages to those who hold a Retail Dealer's On-Premise License (BE), Retail Dealer’s Off-Premise License (BF), Wine and Malt Beverage Retailer's Permit (BG), or Wine and Malt Beverage Retailer's Off-Premise Permit (BQ) . 
  • Local Distributor’s Permit (LP) selling malt beverages to a Mixed Beverage (MB) or Private Club Registration (N) permit holder.

Other requirements include:

  • Post-dated checks are not considered cash sales, but a valid check or draft payable on demand can be accepted as cash equivalent.  
  • If a check or draft is accepted, the distributor must deposit it in the bank for payment within two business days. 
  • If a check or draft is returned because of insufficient funds, the distributor must report it to TABC within two business days. Sundays and legal holidays are not considered business days.

Credit Law for Distilled Spirits and Wine

If a wholesale dealer sells distilled spirits or wine on credit to a retailer, the retailer must make payment by a certain date each month. Wholesale dealers include:

  • Wholesalers and wineries that are considered retailers when they purchase wine under credit terms from wholesalers and are subject to credit law.
  • Qualified brewpubs that sell to retailers.
  • Package stores that hold a Local Distributor’s Permit (LP) selling distilled spirits and wine to Mixed Beverage (MB) or Private Club Registration (N) permit holders.

Retailer payment of credit purchases depends on when they made the purchase. If the purchase is made:

  • From the first through the 15th day of the month, payment must be made on or before the 25th of the same month.
  • From the 16th through the last day of a month, payment must be made on or before the 10th day of the following month.

Wholesale dealers do not have to sell distilled spirits and wine on credit.

Credit Law Delinquent List

When a retailer does not make their payment for distilled spirits and wine on time, the seller must report this to TABC. The reported retailer then appears on the Delinquent List that TABC publishes twice a month. No sales or deliveries can be made to retailers on or after the effective date of the list. The retailer can buy distilled spirits or wine again when all delinquencies are paid and they no longer appear on the Delinquent List.

Cash and Credit Law Contacts

All sellers must enter delinquent accounts into the TABC Automated Cash and Credit Law System. If you aren’t already registered in the system, contact your TABC regional office to get a password to access it. You can check which region you’re in below.

Region 1 (Amarillo Regional Office)

Contact: Kara Stephens, Regional Audit Manager
Phone: (806) 353-1286
Email:  Kara.Stephens@tabc.texas.gov
Mailing: 
Texas Alcoholic Beverage Commission
Attention: Audit and Investigations
3131 Bell St., Suite 106
Amarillo, TX 79106

Region 2 (Arlington Regional Office)

Contacts: Elane Lewis, Administrative Assistant, or Terry Willis, Assistant Regional Audit Manager
Phone: (817) 652-5912
Email: Elane.Lewis@tabc.texas.gov or Terry.Willis@tabc.texas.gov
Mailing:
Texas Alcoholic Beverage Commission
Attention: Audit and Investigations
2225 East Randol Mill Road, Suite 200
Arlington, TX 76011

Region 3 (Houston Regional Office)

Contacts: Twila Williams, Assistant Regional Manager, or Nicole Phillips, Regional Audit Manager
Phone: (713) 426-7900
Email: Twila.Williams@tabc.texas.gov or Nicole.Phillips@tabc.texas.gov
Mailing: 
Texas Alcoholic Beverage Commission
Attention: Audit and Investigations
427 West 20th Street, Suite 600
Houston, TX 77008-2497

Region 4 (Austin Regional Office)

Contacts: Stephanie Connelly, Team Lead, or Joshua Alexander, Regional Audit Manager
Phone: (512) 206-3349
Email: Stephine.Connelly@tabc.texas.gov or Joshua.Alexander@tabc.texas.gov
Mailing:
Texas Alcoholic Beverage Commission
Attention: Audit & Investigations
P.O. Box 13127
Austin, TX 78711

Region 5 (San Antonio Regional Office)

Contacts: Brittany Brown, Administrative Assistant, or Stacy Jackson, Regional Audit Manager
Phone: (210) 731-1720
Email: Brittany.Brown@tabc.texas.gov or Stacy.Jackson@tabc.texas.gov
Mailing:
Texas Alcoholic Beverage Commission
Attention: Audit & Investigations
Goliad Building
4203 Woodcock Drive, Suite 120
San Antonio, TX 78228-1372

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