On all alcohol (ethanol) sales in the United States, the Federal Government requires an Excise Tax to be collected and paid to them. This across-the-board alcohol tax is $13.34/proof gallon of alcohol, which for 190 proof alcohol yields $25.35/gallon, regardless of the selling price of the alcohol. In 2018, due to a Congressional tax bill change and up to a limited amount, the excise tax is $2.70/proof gallon, which for 190 proof alcohol yields $5.13/gallon (the correct amount will be applied to your order). The same thing applies whether one purchases a glass of beer or a bottle of wine; the tax is collected and remitted at some point along the purchase for the volume of alcohol present.
The Organic Alcohol Company (OAC) does not make any profit from collecting the 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.
Wineries or Wine Processors with a current Wine Bond can purchase Grape Neutral Spirits (only) without paying the tax through OAC. OAC will require a copy of the Wine Bond before shipping.
For the Organic Alcohol Company 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.
Follow the links below for more information and application for Transfer in Bonds.
Denatured ethanol products do not require the payment of a Federal Excise Tax.
If your company is eligible for a federal drawback follow the link below for more information: