Grimes County commissioners fail to reinstate local TABC fees after motion lacks a second

Grimes County commissioners on Aug. 13, 2025, did not reinstate the county’s local Texas Alcoholic Beverage Commission (TABC) permit fee after a motion to approve collection failed for lack of a second.

Tax Assessor-Collector Mary Ann Waters told the commission that the county is authorized under the Texas Alcoholic Beverage Code §11.38 to collect a local fee equal to one-half of the state fee on each permit issued for premises in the county and asked the court to reinstate the charge. "Last year, in fiscal year 25, we did not collect $29,905 worth of fees that could have been collected," Waters said, adding that $1,535 was collected late in the year while the court was debating whether to continue the practice.

Waters gave the court a summary of recent collections and licensing in the county. She said there are about 125 distinct TABC licenses issued to businesses in Grimes County, with some businesses holding multiple licenses or locations. She told the court she had contacted neighboring counties and that each of them collects the local TABC fee. Waters also provided preliminary projections: $3,560 in fees remaining to be collected in the current fiscal year (July–August expirations) and a rough estimate of up to $10,765 for fiscal year 2026.

A commissioner framed the fee as a form of user tax, saying alcohol-related incidents put pressure on county resources. "So it's kind of a user tax in that respect," the presiding officer said, and added that while reluctant to add taxes, Grimes County has generally been responsible in spending. After discussion, the presiding officer moved to approve collection of the TABC local fees. "I'll make the motion," the presiding officer said. No commissioner seconded the motion. "No second? Motion fails. No action will be taken," the presiding officer declared.

Because the motion failed for lack of a second, the court took no formal action to reinstate the fee. The court then moved on and adjourned its special meeting.

Background: Waters said the county historically collected the TABC local fee but that commissioners voted in late 2024 to stop collecting it (she identified November or December 2024 as the timeframe but said she was not certain of the exact month). She said she could not find a historical commissioners court order authorizing collection going back to the 1970s, though the fee had been collected in practice during her tenure, which began in 2013.

The commission did not adopt any direction for staff or set a date to revisit the matter during the Aug. 13 special meeting.