Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Alcoholic Beverage Tax Annotations

Alcoholic Beverage

Angostura Bitters. Angostura bitters used as flavoring is too concentrated to be fit for consumption as a beverage. As such, Angostura bitters is not "fit for beverage purposes" under the definition of an Alcoholic Beverage and cannot be a distilled spirit, beer or wine, and is therefore not subject to the tax. 11/12/97. (M99–1).

Alcoholic Beverage Tax

Regulation 2550. No deduction should be allowed for "unintentional destruction" of distilled spirits unless all requirements of Regulation 2550(a) are met, including that the exact quantity destroyed must be known, and the claimant must submit both a statement under oath and proof of loss in the form of paid insurance or carrier claims. A taxpayer who cannot meet all of the requirements of Regulation 2550(a) is limited to claiming the "unaccounted for losses" of no more than 0.1 percent of total sales of distilled spirits, as provided in Regulation 2550(b). 4/2/03.

Imported Beer or Wine Presumed Sold—Section 32175

Imported Beer Stored in a Warehouse. An out-of-state manufacturer delivering beer to a warehouse in California for temporary storage before it is sold to distributors is the legal importer of the beer into California and is responsible for reporting and paying the tax to the state. 7/17/97.

Refund Claims

Under section 32401, a person who purchases Alcoholic Beverages tax-paid from a vendor is not entitled to claim a refund for alleged overpayments of Alcoholic Beverage tax. 6/9/86.

Trucking Company Carriers—Section 32109

Contract Carrier. A contract carrier authorized by the Interstate Commerce Commission to transport general commodities in interstate commerce was properly denied an interstate Alcoholic Beverage transporter's permit. California statutory law makes clear that, with certain exceptions, only common carriers may bring Alcoholic Beverages into the state provided they have also registered with the Board and received from it an interstate Alcoholic Beverage transporter's permit. (Revenue and Taxation Code Section 32109; Business and Professional Code Section 23661) 1/09/92.