Current through Register Vol. 48, No. 38, September 20, 2024
a) Sales to Governmental Bodies for Beverage
Purposes:
In general, manufacturers and importing distributors are liable
for gallonage taxes with respect to alcoholic liquors sold by them to
governmental bodies (foreign, Federal, State or local), their departments,
agencies and instrumentalities, for beverage purposes, if such alcoholic liquor
is delivered in Illinois (including any Federal area located within the
external boundaries of the State of Illinois) to the purchaser. However, direct
sales of beer, wine, alcohol or spirits to the United States Navy, Army or Air
Corps may be made by manufacturers and importing distributors tax-free,
provided that such sales are made to officially recognized agencies physically
located at military bases.
b) Sales to Governmental Bodies for
Non-Beverage Purposes:
1) Manufacturers or
importing distributors selling alcoholic liquor to the United States or to a
Foreign Government, their departments, agencies or instrumentalities, for
non-beverage purposes, are liable for liquor gallonage taxes in the absence of
proper evidence covering such sales. However, when making such sales,
manufacturers and importing distributors are not liable for liquor gallonage
tax if they comply with the following requirements: To claim exemption from the
tax when selling alcoholic liquor to the United States or to a Foreign
Government, their departments, agencies or instrumentalities, for non-beverage
purposes, the manufacturer or importing distributor making such sale should
obtain a written statement, signed by an authorized officer or employee of the
purchaser and showing the name and address of the seller, the name and address
of the purchaser, the date of the purchase and the kind and quantity of
alcoholic liquor covered by the statement, and certifying that the alcoholic
liquor so purchased is purchased by the named Federal or Foreign governmental
body for non-beverage use (describing the alleged non-beverage use with
particularity). The manufacturer or importing distributor making the sale
should obtain such statement in duplicate, forward one of the statements to the
Department upon request and retain one among his books and records. The
manufacturer or importing distributor is further required to show the
transaction in his monthly return in Schedule "E" - Tax-Free Alcoholic Liquor
Sales for Non-beverage Purposes (see Section
420.80(b)(2)(F)
) .
2) Sales of alcoholic liquor to State and
local governmental bodies for non-beverage purposes are treated the same as
sales to other licensed non-beverage users (see Section
420.50
and Section
420.80(b)(2)(F)
) .
