New Legislation Affects the Excise Tax on the Sale of Distilled Spirits to Certain Instrumentalities of the United States Military - Important and Special Notices 2001

New Legislation Affects the Excise Tax on the Sale of Distilled Spirits to Certain Instrumentalities of the United States Military

Senate Bill 607 (Stats. 2000 ch. 609) takes effect January 1, 2001

Senate Bill 607, which was signed by Governor Gray Davis and becomes effective January 1, 2001, exempts the sale of distilled spirits to exchanges, enlisted men's clubs or messes of the Army, Air Force, Navy, Marine Corps or Coast Guard from the California Alcoholic Beverage tax. Sales of beer and wine will remain subject to the Alcoholic Beverage Tax.

Senate Bill 607:

Senate Bill 607 adds Revenue and Taxation Code section 32177.5 which states that no tax shall be imposed upon the sale of distilled spirits by brandy manufacturers, distilled spirit manufacturers, rectifiers, importers, and distilled spirit wholesalers to the following listed instrumentalities of the armed forces of the United States organized under the Army, Air Force, Navy, Marine Corps, or Coast Guard and located upon territory within the geographical boundaries of the state:

(a) Army, Air Force, Navy, Marine Corps, and Coast Guard exchanges
 
(b) Officers', noncommissioned officers', and enlisted men's clubs or messes

For more information, please call the Board's Information Center at 800-400-7115. Staff is available from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding State holidays.