Bulletin Number
VTB 84-6
Tax Type
General Provisions
Description
Beverage Excise Tax, Citronet
Topic
Basis of Tax
Date Issued
06-08-1984
Beverage Excise Tax, Citronet
Virginia Code § 4-99 defines beverages as beer, wine, similar fermented malt, and fruit juice, containing one half of one percent or more of alcohol by volume, and not more than three and two-tenths percent of alcohol by weight. § 108 of Title 4 levies an excise tax on all beverages, as defined above which are sold in Virginia. Such excise tax is paid by the brewery, bottler or wholesaler selling the beverages to licensed retailers.
A product known as "citronet" has been authorized for sale in Virginia. Citronet has an alcoholic content of 2.97% by weight, is a beverage as defined above, and is subject to the excise tax levied on beverages by Virginia Code § 4-108. Every brewery, bottler or wholesaler selling citronet to licensed retailers must pay the applicable malt beverage tax to the Department of Taxation.
Certain wholesalers of citronet are currently registered with the Department of Taxation to file the monthly Malt Beverage Wholesaler's Report, Form BT-1008, and required to pay the tax. Such wholesalers should separately report the sales of citronet in the blank columns provided for bottles and cans on Form BT-1008 and report sales of other types of malt beverages on their monthly report as provided, and remit the total applicable tax to the department.
All wholesalers of citronet not currently registered with the Department of Taxation for malt beverage tax purposes must register with the Department of Taxation to file the monthly Malt Beverage Wholesaler's Report, Form BT-1008, and pay the applicable tax on the gales of citronet. Such wholesalers should report the sales of citronet in the blank columns provided for bottles and cans on Form BT-1008 and remit the applicable tax to the department.
Currently citronet is available only in 12 oz. containers and the applicable malt beverage tax is 2.65 ¢ per bottle or can. In the event citronet is marketed in other size containers, the applicable tax on such containers will apply.
Anyone having questions should contact the Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282 or call (804)257-8046.
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