[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR19.49]

[Page 365-366]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 19_DISTILLED SPIRITS PLANTS--Table of Contents
 
                 Subpart Ca_Special (Occupational) Taxes
 
Sec.  19.49  Liability for special tax.

    Source: T.D. ATF-271, 53 FR 17541, May 17, 1988, unless otherwise 
noted.


    (a) Proprietor of distilled spirits plant--(1) General. Except as 
provided in Sec.  19.906, every proprietor of a distilled spirits plant 
shall pay a special (occupational) tax at a rate specified by Sec.  
19.50. The tax shall be paid on or before the date of commencing 
business as a distilled spirits plant proprietor, and thereafter every 
year on or before July 1. On commencing business, the

[[Page 366]]

tax shall be computed from the first day of the month in which liability 
is incurred, through the following June 30. Thereafter, the tax shall be 
computed for the entire year (July 1 through June 30).
    (2) Transition rule. For purposes of paragraph (a)(1) of this 
section, a proprietor engaged in distilled spirits plant operations on 
January 1, 1988, shall be treated as having commenced business on that 
date. The special tax imposed by this transition rule shall cover the 
period January 1, 1988, through June 30, 1988, and shall be paid on or 
before April 1, 1988.
    (3) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a)(1) of this 
section is zero. However, each proprietor still must register by filing 
the special tax return on Form 5630.5 during this 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.
    (b) Liquor Dealer--(1) General. A proprietor of a distilled spirits 
plant shall be subject to or exempt from a liquor dealer's special 
(occupational) tax as provided in part 31 of this chapter.
    (2) Exemption for sales by a proprietor of a distilled spirits 
plant. A proprietor of a distilled spirits plant is not required to pay 
special tax, or to register during the suspension period described in 
paragraph (a)(3) of this section, as a wholesale or retail dealer in 
liquor because of sales, at the principal place of business or at the 
distilled spirits plant, of liquor which at the time of sale is stored 
at the distilled spirits plant or which had been removed and stored in a 
taxpaid storeroom operated in connection with the distilled spirits 
plant. Each proprietor of a distilled spirits plant shall have only one 
exemption from dealer's special tax, or from dealer's registration, for 
each distilled spirits plant. The distiller may designate, in writing to 
the appropriate TTB officer, that the principal place of business will 
be exempt from dealer's special tax or registration; otherwise, the 
exemption will apply to the distilled spirits plant.
    (c) Each place of business taxable--(1) General. A proprietor of a 
distilled spirits plant incurs special tax liability, or an obligation 
to register during the suspension period described in paragraph (a)(3) 
of this section, at each place of business in which an occupation 
subject to special tax is conducted. A place of business means the 
entire office, plant or area of the business in any one location under 
the same proprietorship. Passageways, streets, highways, rail crossings, 
waterways, or partitions dividing the premises are not sufficient 
separation to require additional special tax, if the divisions of the 
premises are otherwise contiguous.
    (2) Exception for contiguous areas. A proprietor of a distilled 
spirits plant does not incur additional special tax liability, or an 
obligation to register during the suspension period described in 
paragraph (a)(3) of this section, for sales of liquor made at a location 
other than on distilled spirits plant premises described on the notice 
of registration, Form 5110.41, if the location where such sales are made 
is contiguous to the distilled spirits plant premises in the manner 
described in paragraph (c)(1) of this section.

(26 U.S.C. 5081, 5111, 5113, 5142, 5143)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. ATF-285, 54 
FR 12609, Mar. 28, 1989; T.D. TTB-25, 70 FR 19882, Apr. 15, 2005; T.D. 
TTB-36, 70 FR 62242, Oct. 31, 2005]]