Alcohol Permits

The City of Terrell is a wet area with provisions established by the Texas Alcoholic Beverage Commission for the sale of alcoholic beverages.  

A restaurant can hold a MB (Mixed Beverage) license if they also have a FB (Food & Beverage license) per the local option election held on September 29, 1993 City Election.  TABC defines "restaurant" under the Texas Alcoholic Beverage Code - Section 1.04 Definitions. 

TABC Permit City Certification Process

To apply for an alcoholic beverage license in Terrell you should contract with a registered licensing agency to prepare an application as established by the Texas Alcoholic Beverage Commission (TABC). If you don't use a licensing agency, you can submit your TABC application directly to the City Secretary office for our certification.

Contact the Texas Alcoholic Beverage Commission (TABC) to begin the process and obtain a pre-qualification packet.

The pre-qualification packet must be approved by the City Secretary as well other county and state agencies.

To obtain the City Secretary’s signature on a pre-qualification packet, you may submit it by any of the following methods:

Come in person to City Hall, 201 East Nash Street, Terrell 75160. The City has 30 days to review your request. Responses are not provided same day as packet is turned in. 

  • Mail the packet to: City of Terrell Attn: City Secretary’s Office, P.O. Box 310, Terrell TX 75160.
  • Please include a self-addressed stamped envelope for the application to be returned to you.
  • Email a PDF of the packet to support@cityofterrell.org.  

 There is no fee for the City Secretary to certify the application.  

New City Alcoholic Beverage Permit Process under SB 1008 (2025):

The City of Terrell values our partnership with local businesses and appreciates the important role you play in our community. We are providing this information on the recent changes in state law that affect the way the city may collect certain fees associated with alcoholic beverage permits.

Senate Bill 1008, which took effect on September 1, 2025, was passed by the Texas Legislature to ensure consistency and fairness in how food service establishments and alcoholic beverage permit holders are regulated across the state.

What This Means for Your Business

  • If your establishment holds a permit to sell alcoholic beverages and falls under the classifications listed below, the city will no longer collect an additional local alcohol permit fee in connection with your TABC license.
  • SB 1008 limits when a city, county or a public health district may charge a local license or permit fee under the Texas Alcoholic Beverage Code. The bill clarifies that a county, city, or public health district may not charge the license or permit fee if the premises is a food service establishment, retail food store, mobile food unit, roadside food vendor, or temporary food service establishment that has already paid a fee to operate to DSHS or to any county, city, or public health district.
  • If you do not fall into any of the classifications above, you will still receive an invoice for the ½ of the State regulated TABC fee allowed for your permit level billed to match your TABC permit timeframe.  Examples: liquor stores and bonded warehouses.

 Next Steps

  • No action is required on your part. The City of Terrell will automatically discontinue collecting local alcohol permit fees for establishments where a health/food service permit fee would be provided by DSHS (see definition above).
  • If you have questions about your upcoming renewal, or to confirm which fees apply to your business, please contact the City Secretary’s Office 972-551-6600 x1430 or email support@cityofterrell.org. We want to make this transition as smooth as possible and ensure your business has clear information about its obligations. Thank you for continuing to operate in the City of Terrell and for your contributions to our community.

For those entities that can be invoiced:

Once the TABC process is complete and approved and you have been issued a permit by the State of Texas, please complete the Alcoholic Beverage Permit Application and the City will send you an invoice for the required city permit which is 1/2 of the State fees annually.  Once paid, the city permit will be provided to you.  

Please note the following items:

  • The City’s Alcoholic Beverage Permit will coincide with the TABC Alcoholic Beverage Permit. For example, if your TABC alcoholic beverage permit was renewed and expires in two years, your City Alcoholic beverage permit will expire on this same date.
  • A business MUST display its local permit in the establishment next to the state permit.
  • Complaints regarding an establishment must be made to the TABC and not the City Secretary’s office.

Alcoholic Beverage Permit Application