CT Passes 10% Increase in Alcoholic Beverage Tax

As part of the tax legislation effective October 1, 2019, Connecticut included a 10% increase in excise tax on the sale of alcoholic beverages other than beer made by licensed distributors.

As a result of the rate increase, alcoholic beverage retailers (such as package stores, restaurants, hotels, etc.) will need to pay a floor tax by November 15, 2019 on their inventory as of October 1, 2019.  This inventory amount includes alcohol ordered prior to October 1, 2019 but delivered between October 1 and October 8, 2019. Distributors are required to label the inventory delivered during this period as “ALCOHOL FLOOR TAX DUE ON THESE PRODUCTS”. The floor tax on alcoholic beverages is basically a catch-up tax on the items retailers already had in stock prior to the rate increase.  As a non-distributor, this will be a one-time tax, due November 15, 2019.

In order to retain a liquor permit, retailers MUST take an inventory on October 1, 2019 (including any open bar stock) and pay the Floor Tax accordingly, with Form FT-AFT. 

To read further, please visit the Department of Revenue website.

 

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