Excise Tax Navigator ,1. Alcoholic Beverages

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Table of Contents
1. Alcoholic Beverages 
 
Ohio
Excise Tax Navigator
1. Alcoholic Beverages
1.1. Imposition of Excise Taxes — 
Ohio imposes excise taxes on alcoholic beverages. 
Ohio is a control state and imposes excise taxes on alcoholic beverages.1 Ohio also imposes a general sales tax for liquor sales. See the Sales and Use Tax Navigator, at Ohio 11.1.3.4 and 14.1. 
1 Ohio Rev. Code Ann. § 4301.43; Ohio Rev. Code Ann. § 4301.432; Ohio Rev. Code Ann. § 4301.42. 
The TTB collects federal excise taxes on alcoholic beverages, which are included separately in the final purchase price. See the Federal Excise Tax Navigator, at 1. 
1.2. Taxable Persons — 
Manufacturers, wholesalers, distributors, and retailers are responsible for paying alcoholic beverage excise tax in Ohio. 
In Ohio, the following entities are subject to alcoholic excise taxes: 
• distilled spirits: manufacturers, wholesalers, and retailers; 
• wine: manufacturers, farm wine manufacturers, distributors, wholesalers, direct wine shippers, and retailers; 
• beer: manufacturers, bottlers, beer canners, wholesalers, and S permit holders; and 
• cider: manufacturers, farm wine manufacturers, and distributors.2
2 Ohio Rev. Code Ann. § 4301.43; Ohio Rev. Code Ann. § 4301.432; Ohio Rev. Code Ann. § 4301.42; Ohio Admin. Code § 5703-19-01. 
1.3. Basis of Tax and Tax Rates 
1.3.1. Distilled Spirits — 
Ohio alcoholic beverage excise tax is imposed on mixed beverages at $1.20 per wine gallon.3 
3 Ohio Rev. Code Ann. § 4301.43(C). 
The excise tax is imposed on mix beverages as a dollar amount on sales and distribution of prepared and bottled highballs, cocktails, cordials and other mixed beverages, based on volume. The mixed beverages tax rate is $1.20 per wine gallon.4 
4 Ohio Rev. Code Ann. § 4301.43(C). 
Alcoholic beverages containing 21% alcohol by volume are sold by Ohio agency stores under the supervision of the Ohio Division of Liquor Control.5 
5 See Ohio Dept. of Commerce, Division of Liquor Control (last visited Sept. 25, 2019). 
“Mixed beverages” include bottled and prepared cordials, cocktails, highballs, and solids and confections that are obtained by mixing any type of whiskey, neutral spirits, brandy, gin, or other distilled spirits with, or over, carbonated or plain water, pure juices from flowers and plants, and other flavoring materials. The completed product contains not less than 0.5% of alcohol by volume and not more than 21% of alcohol by volume. Effective April 12, 2021, “mixed beverages” also includes the contents of a pod.6 “Pod” means a sealed capsule made from plastic, glass, aluminum, or a combination thereof to which all of the following apply: 
6 Ohio Rev. Code Ann. § 4301.01(B)(4) as amended by 2020 Ohio H.B. 674, effective April 12, 2021. 
• the capsule contains intoxicating liquor of more than 21% of alcohol by volume; 
• the capsule also contains a concentrated flavoring mixture; 
• the contents of the capsule are not readily accessible or intended for consumption unless certain manufacturer's processing instructions are followed; 
• the instructions include releasing the contents of the capsule through a machine specifically designed to process the contents; 
• after being properly processed according to the manufacturer's instructions, the final product produced from the capsule contains not less than 0.5% of alcohol by volume and not more than 21% of alcohol by volume.7
7 Ohio Rev. Code Ann. § 4301.01(B)(23) as amended by 2020 Ohio H.B. 674, effective April 12, 2021. 
1.3.2. Wine — 
Ohio alcoholic beverage excise tax is imposed on wine at rates which differ based on the alcohol content and carbonations of the wine. 
The wine tax is composed of two taxes on wine: the grape industries fund tax and the excise tax. Both the grape fund tax and the excise tax are imposed as a dollar amount on sales and distribution of wine, based on volume. Wine tax rates are as follows: 
• wine with between 4 and 14% alcohol by volume: 
○ total: $0.32 per wine gallon; 
• excise tax: $0.30 per wine gallon; 
• grape fund tax: $0.02 per wine gallon; 
• wine with between 14 and 21% alcohol by volume: 
○ total: $1.00 per wine gallon; 
• excise tax: $0.98 per wine gallon; 
• grape fund tax: $0.02 per wine gallon; 
• vermouth (contains less than 21% alcohol by volume: 
○ total: $1.10 per wine gallon; 
• excise tax: $1.08 per wine gallon; 
• grape fund tax: $0.02 per wine gallon; 
• sparkling and carbonated wine and champagne: 
○ total: $1.50 per wine gallon; 
• excise tax: $1.48 per wine gallon; 
• grape fund tax: $0.02 per wine gallon.8
8 Ohio Rev. Code Ann. § 4301.432; Ohio Rev. Code Ann. § 4301.43(B); Ohio Rev. Code Ann. § 4301.43(D). See Ohio Dept. of Taxn., Ohio Wine Excise Rates (by Configuration). 
1.3.3. Beer — 
Ohio alcoholic beverage excise tax is imposed on beer at $5.58 per barrel. 
The beer excise tax is imposed as a dollar amount on sales of beer, based on volume. Beer tax rates are as follows: 
• 31-gallon barrels: $5.58 per barrel ($0.18 per gallon); 
• containers of up to 12 ounces: $0.0014 per ounce; 
• containers between 12 ounces and 128 ounces: $0.0084 per six ounces; 
• containers of 128 ounces (1 gallon) or more: $0.18 per gallon.9
9 Ohio Rev. Code Ann. § 4305.01; Ohio Rev. Code Ann. § 4301.42. See Ohio Dept. of Taxn., Beer Excise Tax Rates (by Configuration). 
1.3.4. Cider — 
Ohio alcoholic beverage excise tax is imposed on cider at $0.24 per wine gallon. 
The cider excise tax is imposed as a dollar amount on sales and distribution of cider, based on volume. The cider tax rate is $0.24 per wine gallon.10 
10 Ohio Rev. Code Ann. § 4301.43(E). 
For alcoholic beverage tax purposes, “cider” means all liquids fit to use for beverage purposes that contain 0.5% of alcohol by volume, but not more than 6% of alcohol by weight, and that are made through the normal alcoholic fermentation of the juice of sound, ripe apples, including, without limitation, flavored, sparkling, or carbonated cider and cider made from pure condensed apple must.11 
11 Ohio Rev. Code Ann. § 4301.01(B)(21). 
1.4. Exemptions — 
Ohio allows exemptions for specific types of sales/specific taxpayers. 
In Ohio, alcoholic beverage tax exemptions include the following: 
• sales of sacramental wine for religious rites; 
• making cider from fruit for the purpose of making vinegar, and nonintoxicating cider, and fruit juices for use and sale; 
• sales to the federal government; 
• sales for resale outside Ohio.12
12 Ohio Rev. Code Ann. § 4301.23; Ohio Rev. Code Ann. § 4301.43(B); Ohio Rev. Code Ann. § 4301.20(C). 
Before July 29, 2018, B-2 permit holders were not required to file returns with the tax commissioner.13 
13 Ohio Admin. Code § 5703-19-01, effective July 29, 2018. 
1.5. Credits and Refunds — 
Ohio provides credits and/or refunds to be claimed for its alcoholic beverage excise tax. 
In Ohio, when tax has been paid on bottled beverages and they are sold and shipped in interstate or foreign commerce, or transported by purchaser or seller out of the state to be resold out of state, the Ohio seller is entitled to a refund of the amount of tax paid. The seller must provide evidence that the price did not include the tax and the name and address of the purchaser. Manufacturers or dealers may receive refunds for the amount of tax paid on bottled beverages that become unfit for sale, or any similar loss that might occur, provided there is proof of the loss. Applications for these refunds must be made within 90 days of the bottled beverages being sold or shipped in interstate or foreign commerce, or within 90 days that they become unfit for sale.14 
14 Ohio Rev. Code Ann. § 4307.07. 
Any licensed brewer whose total production, wherever produced, does not exceed 31 million gallons in a calendar year will receive a credit against their excise tax the following year, and a refund on any excise tax paid during the current year, on up to 9.3 million gallons of beer distributed in Ohio.15 
15 Ohio Rev. Code Ann. § 4303.332. 
In Ohio, a brewing company with S permit is not allowed to file an application for refund. But when the brewing company received its A-1 permit, it is permitted to take a credit against its tax liability on any amounts paid under A-1 permit. Under the law, an A-1 permit holder brewing company that produces less than 31 million gallons of beer in a year, may claim a credit in the next calendar year on not more than 9,300,000 gallons of beer sold or distributed within Ohio. The credit is to be claimed on a monthly basis in the next calendar year, one each month's return, and if by December of that next year, the entire credit has not been used up on each of the twelve month's returns, a refund may then be requested.16 
16 Ohio Bd. Tax App., No. 2013-6502 (Feb. 17, 2015). 
Wine Advance Tax Payment Credits 
Summary Description and Eligibility
The credit is available to A-1 or A-1c permit holders in Ohio, every bottler, importer, wholesale dealer, broker, producer, or manufacturer. See Ohio Rev. Code Ann. § 4303.33(A). 
Taxpayer is eligible if the advance tax payment credits claimed on the report are for advance tax payments received by the tax commissioner on or before the 18th day of the month covered by the report. 
The additional three per cent credit and three per cent discount must be in consideration for advancing the payment of the tax and other services performed by the permit holder and other taxpayers in the collection of the tax. 
Advance tax payment credit: Means credit for payments made by an A-1, A-1c, or B-1 permit holder and any other persons during the period covered by a report which was made in anticipation of the tax liability required to be reported on that report. 
Tax liability: Means the total gross tax liability of an A-1, A-1c, or B-1 permit holder and any other persons for the period covered by a report before any allowance for credits and discount. 
Availability Dates
The credit is currently available. 
Amount
The taxpayer is entitled to an additional credit of 3% of the advance tax payment and a discount of 3% at the time of filing the report if filed properly on any amount by which the tax liability reflected in the report exceeds the advance tax payment estimate by not more than 10%. 
Transferability
There is no data available regarding transferability. 
Refundability/Carryover Period
There is no data available regarding refundability. 
There is no data available regarding carryover. 
Application Process and Deadlines
Taxpayers should visit the Publications for more information. 
Ancillary Matters
There are no ancillary matters. 
References
Ohio Rev. Code Ann. § 4303.33(A). 
In Ohio, a wine manufacturer who is exempt from the alcoholic beverage tax due to production limitations may make a claim for refund of excise taxes paid in a calendar year in December.17 
17 Ohio Rev. Code Ann. § 4303.333. 
1.6. Tax Administration 
1.6.1. Forms — 
Ohio does not provide guidance regarding electronic filing for alcoholic beverage taxes. 
Relevant forms include the following: 
• Ohio Form ALC 36: Ohio Wine and Mixed Beverage Tax Return; 
• Ohio Form ALC 37: Ohio Wine and Mixed Beverage Tax Return for A-2, B2a and/or S Permit Holders; 
• Ohio Form ALC 83: Ohio Beer and Malt Beverage Tax Return; 
• Ohio Form ALC 80: Application for Refund of Taxes on Wine and Mixed Beverages Paid in Excess of Legal Requirements; 
• Ohio Form OTP 1: Application for Other Tobacco Products and Vapor Products Distributor License; 
• Ohio Form OTP 8: Registration for Manufacturer/Importer of Other Tobacco Products and Vapor Products.18
18 Ohio Dept. of Taxn., Tax Forms (contains complete list of alcoholic beverage forms). 
Wine suppliers must provide invoices for any wine bottled outside of Ohio which is shipped into and intended for sale in Ohio. Wine suppliers must submit two copies of the invoices or file the information electronically.19 
19 Ohio Rev. Code Ann. § 4301.433; Ohio Information Release XT 2002-05. 
1.6.2. Due Dates — 
For mixed beverage, wine, and cider permit holders, the monthly payments are due on or before the 18th day of each month for the previous month's liability.20 
20 Ohio Rev. Code Ann. § 4303.33; Ohio Rev. Code § 4301.422; Ohio Admin. Code § 5703-19-01. See Ohio Alcoholic Beverage Website. 
A 3% discount is available on the amount of monthly payment on mixed beverage, wine, and cider permit holders, if the payment is received on or before the 18th day of the month for the previous month's tax liability.21 
21 Ohio Rev. Code Ann. § 4303.33; Ohio Rev. Code § 4301.422. 
For beer permit holders, filing and payment schedules vary according to the type of permit.22 
22 Ohio Rev. Code Ann. § 4303.33, Ohio Rev. Code Ann. § 4301.422; See Ohio Annual Reports for Alcoholic Beverages Website. 
Advance payments are due on or before the 18th day of each month for that month's estimated tax liability.23 
23 Ohio Rev. Code Ann. § 4303.33(A). 
Monthly payments are due on or before the 10th day of the month for the previous month's liability. 24 
24 Ohio Rev. Code Ann. § 4303.33(B). 
Every permit holder who becomes liable for payment of the tax levied on wine or mixed beverage must report and pay the tax to the department of taxation on or before the 18th day of the month immediately following the month in which the liability was incurred. The rules for determining when the liability was incurred are as follows: 
• if wine is bottled in Ohio in an internal revenue bonded warehouse, the bottler becomes liable for payment of the tax upon removal of the wine from the warehouse; 
• if wine is bottled in Ohio other than in an internal revenue bonded warehouse, the bottler becomes liable for payment of the tax upon bottling of the wine; 
• if wine or mixed beverage which has been bottled in an internal revenue bonded warehouse outside Ohio is transfereed to the a like warehouse in Ohio, the consignee becomes liable for payment of the tax upon the removal of the wine or mixed beverage from the Ohio warehouse; 
• if mixed beverage is bottled in Ohio, the bottler becomes liable for payment of the tax upon transfer of ownership, for valuable consideration, to a wholesaler or retailer; 
• if wine or mixed beverage which has been bottled outside Ohio is imported into Ohio other than into an internal revenue bonded warehouse, the first consignee in Ohio becomes liable for payment of the tax upon receipt or possession of the wine or mixed beverage.25
25 Ohio Admin. Code § 5703-19-01. 
1.6.3. Penalties — 
Financial penalties are imposed on failure to pay. 
A penalty of up to 30% may be added to the amount of every assessment made for failure to pay taxes.26 
26 Ohio Rev. Code Ann. § 4305.131(A). 
In addition, the Commission may suspend or revoke the license of any manufacturer, supplier, importer, bottler, wholesale distributor, or retail permit holder in Ohio for a violation of any of the Commission's rules.27 
27 Ohio Admin. Code § 4301:1-1-24(D).