UPDATE — Sept. 28: This story has been updated to include a response from Charles Soechting, attorney for John Hatch and Proof Liquor & Deli, received after the story was originally published Sept. 25. Soechting disputes several assertions contained in the arrest warrant affidavit, including that the business owed approximately $50,000 in sales taxes and that Hatch was arrested.
SAN MARCOS — John Raymond Hatch III, former Democratic party chair and owner of Proof Liquor & Deli, was arrested and booked into the Hays County Jail Sept. 24 on warrants out of Johnson County for the sale of cigarettes and tobacco without a valid permit.
According to an arrest warrant affidavit, a state police investigator conducted a retail cigarette and tobacco products inspection at the Burleson location of Proof Liquor & Deli Aug. 26.
“During this regulatory inspection/investigation, [Sergeant Daniel Doss] observed this business retail cigarette and tobacco products permit posted for public view to be expired 05/31/2026,” read the affidavit.
Upon inquiry by the investigator, the manager on duty stated that the business had applied for a renewal permit, but had not received it yet. The officer “found this to be suspicious,” as it does not take numerous months to receive a renewal permit.
Doss contacted a Texas Comptroller of Public Accounts criminal analyst, who explained that the permit issued was suspended/not valid, due to approximately $50,089.54 in sales tax owed.
“Due to this tax liability, all permits held by Crystal Springs Beer Liquor Wine LLC/Proof Liquor & Deli were suspended and not valid, including, but not limited to, all tobacco permits,” the warrant said.
The officer seized 19 packs of cigarettes and 327 individual cigars displayed for sale in the store.
Furthermore, the affidavit alleges that Hatch confirmed he was aware of the outstanding tax liability, but did not realize his permits were suspended as a result.
Hatch was taken into custody Thursday, Sept. 24, for the following charges:
• SELLS CIGARETTES W/OUT VALID PERMIT-A (JOHNSON CO)
• SELLS TOBACCO PRODUCTS W/OUT VALID PERMIT-A (JOHNSON CO)
He was released on a $1,000 personal recognizance bond the same day.
Hatch did not provide a comment as of the time of publication.
Attorney disputes allegations
Charles Soechting, attorney for Hatch and Proof Liquor & Deli, provided a written statement Monday, Sept. 28, disputing portions of the arrest warrant affidavit.
Soechting said the charges are misdemeanors stemming from the display of an expired certificate and said the business had timely renewed its permit, paid the required fees and received a receipt. According to Soechting, the Comptroller's office failed to issue the renewed permit, and Hatch later received a new certificate retroactively dated to when it should have been issued.
Soechting also disputed the affidavit's assertion that approximately $50,089.54 in sales tax was owed.
“The Agent never informed the Court that there was no arrearage on any monies owed to the State of Texas,” Soechting wrote.
The warrant affidavit, however, states that a Texas Comptroller criminal analyst told the investigating officer that the business's permit was suspended and invalid because of approximately $50,089.54 in sales tax owed.
Soechting also disputed the characterization of Hatch as having been arrested. He said a local judge magistrated Hatch and that Hatch and Soechting then drove to the Hays County Jail, where Hatch was processed. Soechting said Hatch chose to be processed in Hays County because he lives there rather than traveling to Johnson County.
Soechting said Hatch and his representatives are working with Johnson County officials regarding the charges.
