27 C.F.R. § 26.79a Computation of effective tax rate.
Title 27 - Alcohol, Tobacco Products and Firearms
(a) The proprietor shall compute the effective tax rate for distilled spirits containing eligible wine or eligible flavors as the ratio of the numerator and denominator as follows: (1) the numerator will be the sum of: (i) The proof gallons of all distilled spirits used in the product (exclusive of distilled spirits derived from eligible flavors), multiplied by the tax rate prescribed by 26 U.S.C. 5001; (ii) The wine gallons of each eligible wine used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2), or (3), as applicable; and (iii) The proof gallons of all distilled spirits derived from eligible flavors used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5001, but only to the extent that such distilled spirits exceed 2 (2) The denominator will be the sum of: (i) The proof gallons of all distilled spirits used in the product, including distilled spirits derived from eligible flavors; and (ii) The wine gallons of each eligible wine used in the product, multiplied by twice the percentage of alcohol by volume of each, divided by 100. (b) In determining the effective tax rate, quantities of distilled spirits, eligible wine, and eligible flavors will be expressed to the nearest tenth of a proof gallon. The effective tax rate may be rounded to as many decimal places as the proprietor deems appropriate, provided that, such rate is expressed no less exactly than the rate rounded to the nearest whole cent, and the effective tax rates for all products will be consistently expressed to the same number of decimal places. In such case, if the number is less than five it will be dropped; if it is five or over, a unit will be added. (c) The following is an example of the use of the formula. 1 Proof gallons by which distilled spirits derived from eligible flavors exceed 2 (Sec. 6, Pub. L. 96–598, 94 Stat. 3488, as amended (26 U.S.C. 5010)) [T.D. ATF–297, 55 FR 18066, Apr. 30, 1990, as amended by T.D. ATF–307, 55 FR 52741, Dec 21, 1990]
Title 27: Alcohol, Tobacco and Firearms
PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS
Subpart E—Taxpayment of Liquors and Articles in Puerto Rico
Distilled Spirits
§ 26.79a Computation of effective tax rate.
Batch Record ----------------------------------------------------Distilled spirits 2249.1 proof gallons.Eligible wine 2265.0 wine gallons (14% alcohol by volume)Eligible wine 1020.0 wine gallons (19% alcohol by volume)Eligible flavors 100.9 proof gallons
(Approved by Office of Management and Budget under control number 1512–0203)
