Federal Excise Tax on Pure Ethanol

The United States Federal Government requires an Excise Tax to be collected on all ethanol products sold in the U.S. The alcohol excise tax is a per-gallon tax rather than a percentage of price tax. The rate is based on the type of alcohol: liquor is taxed at a higher rate than wine and wine is taxed at a higher rate than beer. Currently, liquor is $13.50 per proof-gallon.

Lab Alley does not make profit from collecting this tax, nor do we receive a portion of the tax.

For selling directly to a certified Distilled Spirits Permit (DSP) holder, a Transfer in Bond will be required to be on file.

For Lab Alley to not to charge the Federal Excise Tax on alcohol directly to you, a Transfer in Bond is required to be on file, which is sometimes the case for purchases from wineries and other larger entities who then remit the Excise Tax themselves or legally transfer the liability onward. Eligibility for exemption is determined by the Tax and Trade Bureau (www.ttb.gov).

Follow the links below for more information and application for Transfer in Bonds.

http://www.ttb.gov/forms/bond_form.shtml

http://www.ttb.gov/forms/f510016.pdf

If your company is eligible for a federal drawback follow the link below for more information:
https://www.ttb.gov/ssd/dbmenu1sub1.shtml