Illinois Administrative Code
Title 86 - REVENUE
Part 420 - LIQUOR CONTROL ACT
Section 420.10 - Gallonage Taxes
Universal Citation: 86 IL Admin Code ยง 420.10
Current through Register Vol. 48, No. 38, September 20, 2024
a) Measure of Tax
1) Tax Imposed
A) A tax is imposed upon the privilege of
engaging in business as a manufacturer or as an importing distributor of
alcoholic liquor. The tax shall be at the following rates:
i) $1.39 per gallon for wine containing less
than 20% of alcohol by volume other than cider containing less than 7% alcohol
by volume;
ii)23.1 ¢ per
gallon on beer;
iii) 23.1¢ per
gallon for cider containing not less than 0.5 % alcohol by volume nor more than
7% alcohol by volume; and
iv) $8.55
per gallon on alcoholic liquor containing 20% or more of alcohol by
volume.
B) The tax
applies to alcoholic liquor:
i) manufactured,
imported or purchased tax-free for sale or use by the manufacturer, or as agent
for any other person; or
ii)
imported or purchased tax-free for sale or use by the importing distributor, or
as agent for any other person. (See
235 ILCS
5/8-1.)
2)
For purposes of this Section,
"cider" means any alcoholic beverage obtained by the alcohol fermentation of
the juice of apples or pears including, but not limited to, flavored,
sparkling, or carbonated cider. [
235 ILCS
5/8-1]
b) Persons Liable for Tax
1) Sales of alcoholic liquor by an Illinois
licensed foreign importer to an Illinois licensed importing distributor of
alcoholic liquor are not taxable even if both licenses are held by the same
legal entity.
2) Where one licensed
manufacturer or importing distributor sells alcoholic liquor to another
licensed manufacturer or importing distributor, the sale may be made tax-free
to the extent to which the sale of alcoholic liquor by one Illinois licensed
manufacturer or importing distributor to another Illinois licensed manufacturer
or importing distributor is authorized by the licensing provisions of Article V
of the Act. When the sale is made tax-free, the purchasing manufacturer or
importing distributor is responsible for paying the proper tax unless the
purchaser sells the alcoholic liquor that he or she has bought tax-free to
another licensed manufacturer or importing distributor under circumstances
authorized by the licensing provisions of the Act and elects not to pay the
tax. This procedure may be continued until a licensed manufacturer or importing
distributor sells the alcoholic liquor to someone not licensed as a
manufacturer or importing distributor, in which event, if the tax liability has
not been assumed previously, the manufacturer or importing distributor who
makes the sale to a purchaser not licensed as a manufacturer or importing
distributor must pay the proper tax when filing his or her return for the month
in which he or she makes the taxable sale unless there is some other basis for
claiming tax exemption, such as the fact that the sale is in interstate
commerce (see Section
420.30
) or that the sale is made to a non-beverage user (see Sections 420.500 and
420.110(b)
).
3)
The application form
for a winery shipper's license filed under the Act includes an acknowledgement
consenting to the jurisdiction of the Liquor Control Commission, the
Department, and the courts of this State concerning the enforcement of the Act
and any related laws, rules and regulations, including authorizing the
Department and the Liquor Control Commission to conduct audits for the purpose
of ensuring compliance with the Act. A winery shipper licensee must pay to the
Department the State liquor gallonage tax under Section 8-1 of the Act for all
wine that is sold by the licensee and shipped to a person in this State. For
the purposes of Section 8-1 of the Act, a winery shipper licensee shall be
taxed in the same manner as a manufacturer of wine. A winery shipper licensee
who is not otherwise required to register under the Retailers' Occupation Tax
Act [ 35 ILCS 120 ] must register under the Use Tax
Act [ 35 ILCS 105 ] to collect and remit use tax to the
Department for all gallons of wine that are sold by the winery shipper licensee
and shipped to persons in this State. If a winery shipper licensee fails to
remit the tax imposed under the Act in accordance with the provisions of
Article VIII of the Act, the winery shipper's license shall be revoked in
accordance with the provisions of Article VII of the Act. If a winery shipper
licensee fails to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the winery shipper
licensee and shipped to persons in this State, the winery shipper's license
shall be revoked in accordance with the provisions of Article VII of the Act. A
winery shipper licensee must collect, maintain and submit to the Liquor Control
Commission on a semiannual basis the total number of cases per resident of wine
shipped to residents of this State. [
235 ILCS
5/5-1(r)]
4)
If any person received any
alcoholic liquors from a manufacturer or importing distributor, with respect to
which alcoholic liquors no tax is imposed under Article VIII of the Act, and
that alcoholic liquor is thereafter disposed of in such a manner or under such
circumstances as may cause that alcoholic liquor to become the base for the tax
imposed by Article VIII of the Act, that person shall make the same reports and
returns, pay the same taxes and be subject to all other provisions of that
Article relating to manufacturers and importing distributors. [
235 ILCS
5/8-1]
c) The tax imposed under Section 8-1 of the Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or any political subdivision of the State. [235 ILCS 5/8-1] .
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