27 C.F.R. Subpart C—Special (Occupational) Taxes
Title 27 - Alcohol, Tobacco Products and Firearms
(a) General. Except as otherwise provided in paragraph (b) of this section, special taxes are imposed on persons engaging in or carrying on the business or occupation of selling or offering for sale alcoholic liquors fit for use as a beverage or any alcoholic liquors sold for use as a beverage. The classes of liquor dealer business on which special occupational tax is imposed and the conditions under which such tax is incurred are specified in §§31.23 through 31.26. No person shall engage in any business on which the special tax is imposed until he has filed a special tax return as provided in §31.26 of this part and paid the special tax for such business. (b) Suspension of tax. During the period from July 1, 2005, through June 30, 2008, the rate of the tax described in paragraph (a) of this section is zero. However, liquor dealers must register by filing the special tax return on Form 5630.5 during the suspension period even though the amount of tax due is zero. During the suspension period, as at other times, the special tax return is due on or before commencement of business and on or before July 1 of each year thereafter. (72 Stat. 1346; 26 U.S.C. 5142) [25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–271, 53 FR 17552, May 17, 1988. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62247, Oct. 31, 2005] Whether the activities of any person constitute engaging in the business of selling or offering for sale is to be determined by the facts in each case, but any course of selling or offering for sale, though to a restricted class of persons or without a view to profit, is within the meaning of the statute. (a) General. Every person who sells or offers for sale distilled spirits, wines, or beer to any person other than a dealer is, except as provided in paragraph (b) of this section, a retail dealer in liquors. Except during the suspension period described in §31.21(b), every retail dealer in liquors shall pay special tax at the rate specified in §31.101 for such dealer, unless such dealer is exempt from such special tax as provided in paragraph (c) of this section. During the suspension period described in §31.21(b) when no tax is due, the dealer must register by filing the special tax return, Form 5630.5. (b) Persons not deemed to be retail dealers in liquors. The following persons are not deemed to be retail dealers in liquors within the meaning of 26 U.S.C. chapter 51, and are not required to pay special tax (or to register during the suspension period described in §31.21(b)) as such dealer: (1) A retail dealer in beer as defined in §31.25, (2) A limited retail dealer as specified in §31.27, or (3) A person who only sells or offers for sale distilled spirits, wines, or beer as provided in §31.188 through §31.190 or §31.191(a). (c) Persons exempt from special tax. The following persons are exempt from special tax (and from registration during the suspension period described in §31.21(b)) as retail dealers in liquors: (1) A wholesale dealer in liquors selling or offering for sale distilled spirits, wines, or beer, whether to dealers or persons other than dealers, at any place where such wholesale dealer in liquors is required to pay special tax (or to register during the suspension period described in §31.21(b)) as such dealer. (2) A wholesale dealer in beer selling or offering for sale beer only, whether to dealers or persons other than dealers, at any place where such wholesale dealer in beer is required to pay special tax (or to register during the suspension period described in §31.21(b)) as such dealer, or (3) A person who is exempt from special tax under the provisions of §§31.181–31.184, 31.187, or 31.187a. (72 Stat. 1340, 1343, 1344; 26 U.S.C. 5113, 5121, 5122) [T.D. TTB–36, 70 FR 62247, Oct. 31, 2005] (a) General. Every person who sells or offers for sale distilled spirits, wines, or beer to another dealer is, except as provided in paragraph (b) of this section, a wholesale dealer in liquors. Except during the suspension period described in §31.21(b), every wholesale dealer in liquors is required to pay special tax at the rate specified in §31.101 for such dealer, unless such dealer is exempt from such special tax as provided in paragraph (c) of this section. During the suspension period when no tax is due, the dealer must register by filing the special tax return, Form 5630.5, in accordance with §31.21(b). (b) Persons not deemed to be wholesale dealers in liquors. The following persons are not deemed to be wholesale dealers in liquors within the meaning of 26 U.S.C. chapter 51, and are not required to pay special tax (or to register during the suspension period described in §31.21(b)) as such dealer: (1) A wholesale dealer in beer as defined in §31.26, (2) A person who only sells or offers for sale distilled spirits, wines, or beer as provided in §§31.188 through 31.190 or §31.192, or (3) A person returning liquors for credit, refund, or exchange as provided in §31.193. (c) Persons exempt from special tax. (1) The following persons are exempt from special tax (and from registration during the suspension period described in §31.21(b)) as wholesale dealers in liquors: (i) A retail dealer in liquors who consummates sales of distilled spirits, beer or wine, or any combination thereof, to a limited retail dealer at the place where such retail dealer in liquors has paid the special tax (or has registered during the suspension period described in §31.21(b)) as such dealer for the current tax year, (ii) A retail dealer in beer who, having paid the special tax (or having registered during the suspension period described in §31.21(b)) as such dealer for the current tax year, consummates sales at his place of business of beer to a limited retail dealer, or (iii) A person who is exempt from such tax under the provisions of §§31.181 through 31.184. (2) A wholesale dealer in liquors who has paid the special tax (or has registered during the suspension period described in §31.21(b)) as such dealer at the place or places from which he conducts his selling operations is exempt from additional special tax (or from additional registration during the suspension period described in §31.21(b)) on account of his sales of beer or wines to other dealers at the places of business of such dealers. (Sec. 201, Pub. L. 85–859, 72 Stat. 1340, as amended, 1344, as amended; sec. 1905, Pub. L. 94–455, 90 Stat. 1819 (26 U.S.C. 5111, 5112, 5113, 5123)) [T.D. TTB–36, 70 FR 62248, Oct. 31, 2005] (a) General. Every person who sells or offers for sale beer, but not distilled spirits or wines, to any person other than a dealer is, except as provided in paragraph (b) of this section, a retail dealer in beer. Except during the suspension period described in §31.21(b), every retail dealer in beer shall pay special tax at the rate specified in §31.101 for such dealer, unless such dealer is exempt from such special tax as provided in paragraph (c) of this section. During the suspension period when no tax is due, the dealer must register by filing the special tax return, Form 5630.5, in accordance with §31.21(b). (b) Persons not deemed to be retail dealers in beer. The following persons are not deemed to be retail dealers in beer within the meaning of 26 U.S.C. chapter 51, and are not required to pay a special tax (or to register during the suspension period described in §31.21(b)) as such dealer: (1) A limited retail dealer as specified in §31.27, or (2) A person who only sells or offers for sale beer, but not distilled spirits or wines, as provided in §31.188 through §31.189 or §31.191(a). (c) Persons exempt from special tax. The following persons are exempt from special tax (and from registration during the suspension period described in §31.21(b)) as retail dealers in beer: (1) A wholesale dealer in beer selling or offering for sale beer, but not distilled spirits or wines, whether to dealers or persons other than dealers, at any place where such wholesale dealer in beer is required to pay special tax (or to register during the suspension period described in §31.21(b)) as such dealer. (2) A person who is exempt from special tax under the provisions of §§31.181, 31.184, 31,187, or 31.187a. (72 Stat. 1340, 1343, 1344; 26 U.S.C. 5113, 5121, 5122) [T.D. TTB–36, 70 FR 62248, Oct. 31, 2005] (a) General. Every person who sells or offers for sale beer, but not distilled spirits or wines, to another dealer is, except as provided in paragraph (b) of this section, a wholesale dealer in beer. Except during the suspension period described in §31.21(b), every wholesale dealer in beer is required to pay special tax at the rate specified in §31.101 for such dealer, unless such dealer is exempt from such special tax as provided in paragraph (c) of this section. During the suspension period when no tax is due, the dealer must register by filing the special tax return, Form 5630.5, in accordance with §31.21(b). (b) Persons not deemed to be wholesale dealers in beer. The following persons are not deemed to be wholesale dealers in beer within the meaning of 26 U.S.C. chapter 51, and are not required to pay special tax (or to register during the suspension period described in §31.21(b)) as such dealer: (1) A person who only sells or offers for sale beer, but not distilled spirits or wines, as provided in §31.188 through §31.189 or §31.192, or (2) A person returning beer for credit, refund or exchange as provided in §31.193. (c) Persons exempt from special tax. (1) The following persons are exempt from special tax (and from registration during the suspension period described in §31.21(b)) as wholesale dealers in beer: (i) A retail dealer in liquors who consummates sales of distilled spirits, beer or wine, or any combination thereof, to a limited retail dealer at the place where such retail dealer in liquors has paid the special tax (or has registered during the suspension period described in §31.21(b)) as such dealer for the current tax year, (ii) A retail dealer in beer who consummates sales of beer to a limited dealer at the place where such retail dealer in beer has paid the special tax (or has registered during the suspension period described in §31.21(b)) as such dealer for the current tax year, or (iii) A person who is exempt from such tax under the provisions of §§31.181 and 31.184. (2) A wholesale dealer in beer who has paid the special tax (or has registered during the suspension period described in §31.21(b)) as such dealer at the place, or places, from which he conducts his selling operations is exempt from additional special tax (or from additional registration during the suspension period described in §31.21(b)) on account of his sales of beer to other dealers at the places of business of such dealers. (Sec. 201, Pub. L. 85–859, 72 Stat. 1340, as amended, 1344, as amended; sec. 1905, Pub. L. 94–455, 90 Stat. 1819 (26 U.S.C. 5111, 5112, 5113, 5123)) [T.D. TTB–36, 70 FR 62248, Oct. 31, 2005] Any person selling distilled spirits, beer or wine, or any combination thereof, to members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or similar outings, and any fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization selling distilled spirits, beer or wine, or any combination thereof, on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, is a “limited retail dealer,” if the person or organization is not otherwise engaged in business as a dealer. (Sec. 201, Pub. L. 85–859, 72 Stat. 1344; sec. 1905, Pub. L. 94–455, 90 Stat. 1819, as amended (26 U.S.C. 5122)) [T.D. ATF–271, 53 FR 17552, May 17, 1988. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005] Any person who sells or offers for sale distilled spirits, wines, or beer, in quantities of 20 wine gallons (75.7 liters) or more, to the same person at the same time, shall be presumed and held to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, unless such person shows by satisfactory evidence that such sale, or offer for sale, was made to a person other than a dealer. (Sec. 201, Pub. L. 85–859, 72 Stat. 1413 (26 U.S.C. 5691)) [T.D. ATF–34, 41 FR 46860, Oct. 26, 1976. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005]
Title 27: Alcohol, Tobacco and Firearms
PART 31—ALCOHOL BEVERAGE DEALERS
Subpart C—Special (Occupational) Taxes
§ 31.21 Basis of tax.
§ 31.22 Selling or offering for sale.
Dealers Classified
§ 31.23 Retail dealer in liquors.
§ 31.24 Wholesale dealer in liquors.
§ 31.25 Retail dealer in beer.
§ 31.26 Wholesale dealer in beer.
§ 31.27 Limited retail dealer; persons eligible.
§ 31.28 Sales of 20 wine gallons (75.7 liters) or more.
Special Tax Liability of Certain Organizations, Agencies and Persons
§ 31.29 Clubs or similar organizations.
(a) Subject to paragraph (b) of this section, a club or similar organization shall pay special tax (or register during the suspension period as provided in §31.21(b)) if such club or organization:
(1) Furnishes liquors to members under conditions constituting sale (including the acceptance of orders therefor, furnishing the liquors ordered and collecting the price thereof); or
(2) Conducts a bar for the sale of liquors on the occasion of an outing, picnic, or other entertainment, unless the club is a “limited retail dealer” under §31.27 (the special tax stamp or registration of the proprietor of the premises where the bar is located will not relieve the club or organization from its own special tax payment or registration); or
(3) Purchases liquors for members without prior agreement concerning payment therefor and such organization subsequently recoups.
(b) Special tax payment or registration is not required if money is collected in advance from members for the purchase of liquors, or money is advanced for purchase of liquors on agreement with the members for reimbursement.
(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5111, 5121, 5122)
[T.D. TTB–36, 70 FR 62249, Oct. 31, 2005]
§ 31.30 Restaurants serving liquors with meals.
Proprietors of restaurants and other persons who serve liquors with meals to customers, though no separate or specific charge for the liquors is made, shall pay special tax or shall register during the suspension period as provided in §31.21(b).
(72 Stat. 1344; 26 U.S.C. 5122)
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62249, Oct. 31, 2005]
§ 31.31 States, political subdivisions thereof, or the District of Columbia.
(a) General.” A State, a political subdivision thereof, or the District of Columbia which engages in the business of selling, or offering for sale, distilled spirits, wines, or beer is not exempt from special tax. However, no such governmental entity shall be required to pay more than one special tax as a retail dealer in liquors regardless of the number of locations at which such entity carries on business as a retail dealer in liquors. Any such governmental entity which has paid the applicable wholesale dealer special tax at its principal office, and has paid the applicable special tax as a retail dealer, shall not be required to pay additional wholesale dealer special tax at its retail stores by reason of the sale thereat of distilled spirits, wines, or beer, to dealers qualified to do business as such within the jurisdiction of such entity.
(b) Suspension of tax. During the suspension period described in §31.21(b) when no tax is due, the States, their political subdivisions, and the District of Columbia must register only once per tax year by filing a special tax return, Form 5630.5, in accordance with §31.21(b).
(72 Stat. 1340, 1343, 1344, as amended; 26 U.S.C. 5111, 5113, 5121, 5123)
[T.D. 7130, 36 FR 12852, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62249, Oct. 31, 2005]
§ 31.32 Sales of denatured spirits or articles.
Any person who sells denatured spirits or any substance or preparation made with or containing denatured spirits 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 as provided in §31.21(b).
(72 Stat. 1314; 26 U.S.C. 5001)
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62249, Oct. 31, 2005]
§ 31.33 Sales of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer.
(a) Special tax. Special tax payment (or registration during the suspension period as provided in §31.21(b)) will be required with respect to the sale, or offering for sale, of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer, unless such compounds, preparations, or mixtures are unfit for use for beverage purposes and are sold solely for use for nonbeverage purposes.
(b) Products unfit for beverage use. Products meeting the requirements for exemption from qualification under the provisions of §19.58 of this chapter shall be deemed to be unfit for beverage purposes for the purposes of this part.
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and 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 62249, Oct. 31, 2005]
§ 31.34 Sales by agencies and instrumentalities of the United States.
Unless specifically exempt by statute, any agency or instrumentality of the United States, including post exchanges, ship's stores, ship's service stores, and commissaries, or any canteen, club, mess, or similar organization operated under regulations of any such agency or instrumentality, which sells, or offers for sale, distilled spirits, wines, or beer shall pay special tax (or register during the suspension period as provided in §31.21(b)) as a dealer in liquors or as a dealer in beer, as the case may be, for carrying on such business.
(72 Stat. 1340, 1343, 1347; 26 U.S.C. 5111, 5121, 5143)
[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–379, 61 FR 31426, June 20, 1996 and further redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62249, Oct. 31, 2005]
§ 31.35 Warehouse receipts covering spirits.
The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, except during the suspension period described in §31.21(b), every person who sells or offers for sale warehouse receipts for spirits held or stored in a distilled spirits plant, customs bonded warehouse, or elsewhere, is required to file a special tax return and pay special tax as a wholesale dealer in liquors, or as a retail dealer in liquors, as the case may be, at the place where such warehouse receipts are sold, or offered for sale, unless exempt by the provisions of subpart L of this part. During the suspension period, such persons must register as provided in §31.21(b).
(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)
[T.D. TTB–36, 70 FR 62249, Oct. 31, 2005]
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