27 C.F.R. Subpart L—Exemptions and Exceptions
Title 27 - Alcohol, Tobacco Products and Firearms
A single sale of distilled spirits, wines, or beer, or a single sale of one or more warehouse receipts for distilled spirits, unattended by circumstances showing the person making the sale to be engaged in the business, does not subject the vendor to special tax, or to the registration requirement during the suspension period described in §31.21(b). (72 Stat. 1340, 1343, 1346; 26 U.S.C. 5111, 5121, 5142) [25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF–251, 52 FR 19336, May 22, 1987. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62253, Oct. 31, 2005] (a) Exemption of proprietor. No proprietor of a distilled spirits plant shall be required to pay special tax (or to register during the suspension period described in §31.21(b)) as a wholesale or retail dealer in liquors on account of the sale at his principal business office as designated in writing to the appropriate TTB officer, or at his distilled spirits plant, of distilled spirits or wines which, at the time of sale, are stored at his distilled spirits plant, or had been removed from such plant to a taxpaid storeroom the operations of which are integrated with the operations of such plant and which is contiguous or adjacent to, or in the immediate vicinity of, such plant. However, no such proprietor shall have more than one place of sale, as to each plant, that shall be exempt from special tax or registration under this section. (b) Place of exemption. Unless the exemption is claimed elsewhere, it will be presumed that the exemption is claimed at the plant where the spirits or wines are stored. If the proprietor wishes to be exempt from payment of special tax (or from registration during the suspension period described in §31.21(b)) with respect to sales at his principal business office rather than for sales at his plant, he shall notify the appropriate TTB officer of his intention. Such notice shall be in writing, on letter size paper and shall be submitted in triplicate. On approval, two copies will be returned to the proprietor, one to be filed at the principal office, and the original will be retained by the appropriate TTB officer. Where the exemption is claimed for a place other than the plant, special tax shall be paid (or registration shall be completed during the suspension period described in §31.21(b)) at the plant if sales are made thereat. (72 Stat. 1340; 26 U.S.C. 5113) [25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62253, Oct. 31, 2005] (a) Exemption of proprietor. No proprietor of a bonded wine cellar shall be required to pay special tax (or to register during the suspension period described in §31.21(b)) as a wholesale or retail dealer in liquors on account of the sale at his principal business office as designated in writing to the appropriate TTB officer, or at his bonded wine cellar, of wines or wine spirits which, at the time of sale, are stored at his bonded wine cellar, or had been removed from such bonded wine cellar to a taxpaid storeroom the operations of which are integrated with the operations of such bonded wine cellar and which is contiguous or adjacent to, or in the immediate vicinity of, such bonded wine cellar. However, no such proprietor shall have more than one place of sale, as to each bonded wine cellar, that shall be exempt from special tax or registration under this section. (b) Place of exemption. Unless the exemption is claimed elsewhere, it will be presumed that the exemption is claimed at the bonded wine cellar where the wines or wine spirits are stored. If the proprietor wishes to be exempt from special tax (or from registration during the suspension period described in §31.21(b)) with respect to sales at his principal office rather than for sales at his bonded wine cellar, he shall notify the appropriate TTB officer of his intention. Such notice shall be in writing, on letter size paper and shall be submitted in triplicate. On approval two copies will be returned to the proprietor, one to be filed at the principal office, and the original will be retained by the appropriate TTB officer. Where the exemption is claimed for a place other than the bonded wine cellar, special tax shall be paid (or registration shall be made during the suspension period described in §31.21(b)) at the bonded wine cellar if sales are made thereat. (c) Exception. Where the proprietor of a bonded wine cellar consummates sales of wines to other dealers at the purchasers' places of business, through a delivery route salesman or otherwise, the proprietor of the bonded wine cellar is required to pay special tax (or to register during the suspension period described in §31.21(b)) as a wholesale dealer in liquors (or wines) at each place from which he conducts such selling operations. (72 Stat. 1340; 26 U.S.C. 5113) [25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62253, Oct. 31, 2005] (a) Exemption of proprietor. No proprietor of a taxpaid wine bottling house shall be required to pay special tax as a wholesale or retail dealer in liquors for a period beginning on or after January 1, 1988, (including such tax under the transition rule of §31.103(b)), and no such proprietor shall be required to register during the suspension period described in §31.21(b), on account of sales of wine transacted at the proprietor's principal business office, as designated in writing to the appropriate TTB officer, or at the proprietor's taxpaid wine bottling house. However, this exemption applies only to wines which, at the time of sale, are either stored at the taxpaid wine bottling house or had been removed therefrom to a taxpaid storeroom whose operations are integrated with those of the taxpaid wine bottling house and which is contiguous or adjacent to, or in the immediate vicinity of, the taxpaid wine bottling house. Moreover, no such proprietor shall have more than one place of sale, as to each taxpaid wine bottling house, that shall be exempt from special tax or registration under this section. (b) Place of exemption. Unless the exemption is claimed elsewhere, it will be presumed that the exemption is claimed at the taxpaid wine bottling house where the wines are stored. If the proprietor wishes to be exempt from special tax (or from registration during the suspension period described in §31.21(b)) with respect to sales at the proprietor's principal office rather than at the proprietor's taxpaid wine bottling house, the proprietor shall so notify the appropriate TTB officer. The notice shall be in writing, on letter size paper, and shall be submitted in triplicate. On approval, two copies will be returned to the proprietor, one to be filed at the proprietor's principal office, and the original will be retained by the appropriate TTB officer. Where the exemption is claimed for a place other than the taxpaid wine bottling house, special tax shall be paid (or registration shall be completed during the suspension period described in §31.21(b)) at the taxpaid wine bottling house if sales are made there. (c) Exception. Where the proprietor of a taxpaid wine bottling house consummates sales of wines to other dealers at the purchasers' places of business, through a delivery route salesman or otherwise, the proprietor of the taxpaid wine bottling house is required to pay special tax (or to register during the suspension period described in §31.21(b)) as a wholesale dealer in liquors at each place from which the proprietor conducts such selling operations. (26 U.S.C. 5113) [T.D. ATF–285, 53 FR 12610, Mar. 28, 1989. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005] (a) Exemption of proprietor. No proprietor of a brewery shall be required to pay special tax (or to register during the suspension period described in §31.21(b)) as a wholesale or retail dealer in beer on account of the sale at his principal business office as designated in writing to the appropriate TTB officer, or at his brewery, of beer which, at the time of sale, is stored at his brewery, or had been removed from such brewery to a taxpaid storeroom the operations of which are integrated with the operations of such brewery and which is contiguous or adjacent to, or in the immediate vicinity of, such brewery. However, no such proprietor shall have more than one place of sale, as to each brewery, that shall be exempt from special tax or registration under this section. (b) Place of exemption. Unless the exemption is claimed elsewhere, it will be presumed that the exemption is claimed at the brewery where the beer is stored. If the proprietor wishes to be exempt from special tax (or from registration during the suspension period described in §31.21(b)) with respect to sales at his principal office rather than for sales at his brewery, he shall notify the appropriate TTB officer of his intention. Such notice shall be in writing, on letter size paper and shall be submitted in triplicate. On approval, two copies will be returned to the proprietor, one to be filed at the principal office, and the original will be retained by the appropriate TTB officer. Where the exemption is claimed for a place other than the brewery, special tax shall be paid (or registration shall be completed during the suspension period described in §31.21(b)) at the brewery if sales are made thereat. (c) Exception. Where the proprietor of a brewery consummates sales of beer to dealers at the purchasers' places of business (through delivery route salesmen or otherwise), such proprietor is required to pay special tax (or to register during the suspension period described in §31.21(b)) as a wholesale dealer in beer at each place from which he conducts such selling operations. (72 Stat. 1340; 26 U.S.C. 5113) [25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005] (a) Sales of wines. Any wholesale dealer in liquors (including the proprietor of a bonded wine cellar) who has paid special tax (or who has registered during the suspension period described in §31.21(b)) as a wholesale dealer in liquors for the place from which he conducts his selling operations may consummate sales of wines to other wholesale or retail dealers in liquors, or to limited retail dealers, at the purchasers' places of business without being required to pay additional special tax or register on account of such sales. (b) Sales of beer. Any wholesale dealer in liquors who has paid the tax (or who has registered during the suspension period described in §31.21(b)) as provided in paragraph (a) of this section may also consummate sales of beer to wholesale or retail dealers in beer, to wholesale or retail dealers in liquors, or to limited retail dealers, at the purchasers' place of business without being required to pay additional special tax or register on account of such sales. (72 Stat. 1340; 26 U.S.C. 5113) [25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005] Any dealer (including the proprietor of a brewery) who has paid special tax (or who has registered during the suspension period described in §31.21(b)) as a wholesale dealer in beer for the place from which he conducts his selling operations may consummate sales of beer (but not wines or distilled spirits) to other dealers at the purchasers' places of business without being required to pay additional special tax or register on account of such sales. (72 Stat. 1340; 26 U.S.C. 5113) [25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005] Hospitals and similar institutions furnishing liquors to patients are not required to pay special tax, or to register during the suspension period described in §31.21(b), provided no specific or additional charge is made for the liquors so furnished. [25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005] Limited retail dealers, as specified in §31.27, are not required to pay special tax, or to register during the suspension period described in §31.21(b). [T.D. ATF–271, 53 FR 17553, May 17, 1988. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886 Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005] Effective January 1, 1988, special tax is not imposed concurrently under both 26 U.S.C. 5111(a) (relating to wholesale liquor sales) and 26 U.S.C. 5111(b) (relating to wholesale beer sales), nor under both 26 U.S.C. 5121(a) (relating to retail liquor sales) and 26 U.S.C. 5121(b) (relating to retail beer sales), with respect to a taxpayer's activities at a single place during a single tax year. (See §31.72.) (26 U.S.C. 5113(g), 5123(c)) [T.D. ATF–285, 54 FR 12611, Mar. 28, 1989. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886 Apr. 15, 2005]
Title 27: Alcohol, Tobacco and Firearms
PART 31—ALCOHOL BEVERAGE DEALERS
Subpart L—Exemptions and Exceptions
Persons Exempt From Liquor and Beer Dealer Special Taxes
§ 31.181 Single sale of liquors or warehouse receipts.
§ 31.182 Proprietors of distilled spirits plants selling certain distilled spirits or wines.
§ 31.183 Proprietors of bonded wine cellars selling certain wines or wine spirits.
§ 31.183a Proprietors of taxpaid wine bottling houses selling certain wines.
§ 31.184 Proprietors of breweries selling beer stored at their breweries.
§ 31.185 Wholesale dealers in liquors consummating sales of wines or beer at premises of other dealers.
§ 31.186 Wholesale dealers in beer consummating sales at premises of other dealers.
§ 31.187 Hospitals.
§ 31.187a Limited retail dealers.
§ 31.187b Coordination of taxes under 26 U.S.C. 5111 and 5121.
Persons Who Are Not Dealers in Liquors or Beer
§ 31.188 Persons making casual sales.
Certain persons making casual sales of liquors are not liquor or beer dealers within the meaning of the statute; they are as follows:
(a) Administrators, executors, receivers, and other fiduciaries who receive distilled spirits, wines, or beer in their fiduciary capacities and sell such liquors in one parcel, or at public auction in parcels of not less than 20 wine gallons (75.7 liters);
(b) Creditors who receive distilled spirits, wines, or beer as security for, or in payment of, debts and sell such liquors in one parcel, or at a public auction in parcels of not less than 20 wine gallons (75.7 liters);
(c) Public officers or court officials who levy on distilled spirits, wines, or beer under order or process of any court or magistrate and sell such liquors in one parcel, or at public auction in parcels of not less than 20 wine gallons (75.7 liters); or,
(d) A retiring partner, or representative of a deceased partner, who sells distilled spirits, wines, or beer to the incoming or remaining partner, or partners, of a partnership.
Persons making such sales are not required to pay special tax (or to register during the suspension period described in §31.21(b)) or keep the records or reports required of dealers in subpart O of this part.
(Sec. 201, Pub. L. 85–859, 72 Stat. 1340 (26 U.S.C. 5113))
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–34, 41 FR 46860, Oct. 26, 1976. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005]
§ 31.189 Agents, auctioneers, brokers, etc., acting on behalf of others.
Certain persons may sell liquors as agents or employees of others, or receive and transmit orders therefor to a dealer, without being considered liquor or beer dealers on account of such activities; they are as follows:
(a) Auctioneers who merely sell liquors at auction on behalf of others,
(b) Agents or brokers who merely solicit orders for liquors in the name of a principal, but neither stock nor deliver the liquors for which orders are taken,
(c) Employees who merely sell liquors on behalf of their employers, and
(d) Retail dealers in liquors or retail dealers in beer who merely receive and transmit to a wholesale dealer orders for liquors or beer to be billed, charged, and shipped to customers by such wholesale dealers.
Such persons, who have no property rights in the liquors or beer sold, may make collections for their principals and receive commissions for their services, or guarantee the payment of accounts, without being required to pay special tax or to register during the suspension period described in §31.21(b). In all such cases, however, the principal is required to pay special tax (or to register during the suspension period described in §31.21(b)) at each place where sales are consummated, unless he is exempt therefrom under the provisions of this subpart.
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–34, 41 FR 46860, Oct. 26, 1976. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005]
§ 31.190 Apothecaries or druggists selling medicines and tinctures.
Apothecaries and druggists who use wines or spirituous liquors for compounding medicines and in making tinctures which are unfit for use for beverage purposes are not required to pay special tax (or to register during the suspension period described in §31.21(b)) as dealers in liquors by reason of the sale of such compounds or tinctures for nonbeverage purposes.
(72 Stat. 1328; 26 U.S.C. 5025)
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–34, 41 FR 46860, Oct. 26, 1976. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005]
§ 31.191 Persons selling products unfit for beverage use.
(a) Vendors not deemed dealers in liquors or beer. No person selling or offering for sale for nonbeverage purposes products classed as unfit for beverage use under the provisions of §19.58 of this chapter shall be deemed, solely by reason of such sales, to be a dealer in liquors.
(b) Restrictions. Any person who sells or offers for sale any nonbeverage products for use, or for sale for use, for beverage purposes, or who sells any of such products under circumstances from which it might reasonably appear that it is the intention of the purchaser to procure the same for sale or use for beverage purposes, shall pay special tax (or shall register during the suspension period described in §31.21(b)) as a wholesale or retail dealer in liquors or as a wholesale or retail dealer in beer, as the case may be.
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF–379, 61 FR 31426, June 20, 1996. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62254, Oct. 31, 2005]
§ 31.192 Retail dealer selling in liquidation his entire stock.
No retail dealer in liquors or retail dealer in beer, selling in liquidation his entire stock of liquors in one parcel, or in parcels embracing not less than his entire stock of distilled spirits, of wines, or of beer, which parcels may contain a combination of any or all such liquors, to any other dealer shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, by reason of such sale or sales. A retail dealer making such sale or sales is not required to keep records or submit reports thereof.
(72 Stat. 1340; 26 U.S.C. 5113)
§ 31.193 Persons returning liquors for credit, refund, or exchange.
No retail dealer in liquors or beer, or other person, shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer, as defined in this part, by reason of his bona fide return of distilled spirits, wines, or beer, as the case may be, to the dealer from whom purchased (or to the successor of such vendor's business or line of merchandise) for credit, refund, or exchange, and the giving of such credit, refund or exchange shall not be deemed to be a purchase within the meaning of 26 U.S.C. 5117 of §31.211 of this part. Except in the case of wholesale dealers in liquors required to keep records of their transactions under §§31.225 and 31.226, or retail dealers required to keep records under §31.234, persons returning liquors as provided herein are not required to keep records or submit reports of such transactions.
(72 Stat. 1340, 1343; 26 U.S.C. 5113, 5117)
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–48, 44 FR 55844, Sept. 28, 1979; T.D. ATF–116. 47 FR 51571, Nov. 16, 1982. Redesignated and amended by T.D. TTB–25, 70 FR 19884, 19886, Apr. 15, 2005]
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