Bulletin Number
VTB 84-19
Tax Type
General Provisions
Description
Beverage Excise Tax: Applicability to Wine Coolers
Topic
Basis of Tax
Property Subject to Tax
Date Issued
07-31-1984
Beverage Excise Tax: Applicability to Wine Coolers
Virginia Tax Bulletin 84-6 was issued June 8, 1984 to advise concerned persons that a wine cooler known as "citronet" is a beverage as defined by § 4-99 of the Code of Virginia. § 4-99 defines as beverages any beer, wine, similar fermented malt, or fruit juice, containing 1/2 of 1% or more alcohol by volume, and not more than 3.2% alcohol by weight. While "citronet" contains 4% alcohol, as stated on its label, by volume it has an alcoholic content of only 2.97% by weight.
Since there are several more products similar to "citronet" now being marketed in Virginia and more are anticipated, the Department of Alcoholic Beverage Control has advised that any similar product containing 4% alcohol by volume will be subject to the excise tax levied on beverages by Code § 4-108 and not to the tax levied on wine by Code § 4-22.1.
Every brewery, bottler or wholesaler selling such beverages to licensed retailers must pay the applicable malt beverage tax to the Department of Taxation. Any wholesalers not currently registered with the Department of Taxation for malt beverage tax purposes must register and file monthly Malt Beverage Wholesaler's Reports, Form BT-1008.
Anyone having questions should contact the Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282 or call (804) 257-8046.
Tax Bulletins