Tax allocations from alcohol sales in Buda and Kyle nearly doubled in 2013 from 2012, when voters in the cities authorized loosened liquor laws.

"That doesn't surprise me one bit," Buda Mayor Todd Ruge said. "Before we had [on-premises sales of] liquor by the drink, really the only place you could get a mixed drink was Logan's or Chili's. The ability to have these restaurants sell mixed drinks has really helped."

Ruge said the relaxed liquor laws have given a boost to downtown. As the city's master plan to revitalize the area gets underway, drinking establishments will be an integral part of the conversation, he said.

Before the rules changed, Kyle and Buda restaurants could only sell mixed drinks as long as food made up 51 percent of their sales.

Furthermore, in Buda, laws forbade the operation of liquor stores.

The mayor said the revenue from mixed-beverage tax allocation, more than $16,000 in 2013, will go into the city's general fund. The money could support capital improvement projects, of which there are several the City Council hopes to tackle, he added.

Kyle Police Chief Jeff Barnett said no negative results have spawned from the resolution to relax liquor laws, which passed in Kyle in May 2012.

Businesses know that if problems arise from their vending of alcoholic drinks, their Texas Alcoholic Beverage Commission license could be at stake, he said.

"Each of them, regardless of their sales, have all been very cooperative and very mindful that part of their job is to be good community stewards," Barnett said.

With a 146-percent increase in allocation, Kyle received more than $14,000 more in tax revenue from mixed-beverage sales in 2013 than it did in 2012.

Buda, whose allocation dollars rose by 40 percent, could see more growth with new businesses setting up shop, Ruge said.

Buda residents had no choice but to venture into Austin or San Marcos for a mixed drink, but now they can spend their money locally, he said.

"It gives citizens a chance to stay in town and keep tax dollars in Buda," Ruge said.