Ala. Admin. Code r. 20-X-9-.02

Current through Register Vol. 43, No. 02, November 27, 2024

Section 20-X-9-.02 - Beer Wholesale Record Requirements

(1) All beer wholesalers shall maintain records at their place of business, reflecting the following:

(a) All beer received by supplier, brand name, number of cases, number of containers per case, ounces per container, manufacturer's invoice number and date received. All beer received in the wholesaler's warehouse shall be acknowledged by signature of a representative of the wholesaler on the receiving documents. The date received shall also be indicated on the documents. All beer received shall be recorded and reported to the ABC Board as a receipt in the month the beer was received. Taxes shall be paid when due on levy of all receipts with deduction for all allowable credits.

(b) All beer sold, furnished, or delivered shall have a wholesaler's invoice available which shall bear information as to the recipient's name, complete address, brand name, number of cases, number of containers per case, ounces per container, date of delivery or pick-up, invoice number, the county and municipality where the sale or delivery occurred, and where required, the retail licensee's name, complete ABC license number, amount of sale, and name of any employee purchasing beer. In all instances, the recipient of the beer must sign and date the invoice. Stamps may be used but cannot replace signatures.

1. Sales invoices shall be prepared for sales made to retail licensees and must contain the information listed in (1)(b).

2. Sales invoices shall be prepared for all sales to employees of the wholesaler and must contain the information listed in (1)(b).

3. Invoices shall be prepared for all beer furnished at no charge as samples, gifts, and gratuities allowed under 20-X-8-.07(1)(a), and for promotional/advertising beer furnished civic, charitable, fraternal, or similar organizations as allowed. These invoices must contain the information listed in (1), (b) and the purpose of the promotion. An employee, officer or owner of a wholesale business may, on the premises of the officer or owner of a wholesale business may, on the premises of the wholesaler, be offered a tasting of beer to determine items for potential purchase by the wholesaler or to develop new marketing strategies of existing product offerings. The wholesaler shall be responsible for the payment of all state and local taxes and any other taxes due the State of Alabama for beer furnished in this manner.

(2) Wholesalers claiming credit for beer sold to military installations shall provide evidence of the sales by presentation of appropriate proof of payments to include check copies, check stubs, or a method of electronic transfer of funds that has been approved by the ABC Board with any supporting documentation forwarded by the military installation. Beer sales to military installations shall be allowed as monthly credits or deductions from beer taxes due. Wholesalers must provide evidence of receipt of payment for the beer sales with federal funds upon audit or disallowance of the credits will result and the original taxes will be assessed.

(3) Each beer wholesaler shall file a monthly tax return with the ABC Board which shall be postmarked on or before the last day of the month following the month of receipt of the beer by the wholesaler. All taxes due shall be remitted with the tax return. The tax return, schedule of receipts from the brewery or importer, and all other schedules or supporting documents as required shall be filed promptly and on forms furnished or approved by the ABC Board.

(4) Any transfer from one ABC Board beer wholesaler to another shall be accounted for by use of a transfer certificate furnished or approved by the ABC Board. The wholesaler first receiving the beer from the brewery or importer shall be liable for the payment of any Alabama beer tax. A copy of this certificate shall be mailed to the ABC Board by both wholesalers involved, along with their monthly tax returns. Transfers may be made intrastate only between licensed ABC Board beer wholesalers.

(5) Merchandise damaged, broken or otherwise unsaleable will be allowed as a deduction from the monthly beer taxes due when computing net tax liability. This deduction will be allowed only when the destruction or evidence of breakage of said merchandise is witnessed by an ABC Board representative, in accordance with applicable state and federal regulations. An affidavit shall be prepared establishing the date destroyed, when and how destroyed, the number of units by size container, and the signatures of the wholesaler's representative and ABC Board representative witnessing said destruction. A copy of this affidavit shall be retained by the wholesaler. The ABC Board representative witnessing the destruction shall send the original affidavit to the Tax and Trade Practices Division of the ABC Board. All destructions shall be made in a manner to comply with EPA rules regarding the disposal of alcoholic beverages. Responsibility for compliance with the EPA rules rests with the wholesaler.

(6) Exported items shall be subject to the initial levy of beer taxes but not to the ultimate tax liability by the ABC Board. Wholesalers may claim credit against monthly beer tax liability whenever merchandise is exported if the export is made and documented in the following manner. In cases of export, the wholesaler shall retain a duplicate invoice giving the name of the person, firm, corporation or association of persons to whom shipped, delivered or sold; date of sale or shipment and the quantity of such merchandise. The wholesaler shall retain a freight, express or postal receipt for such merchandise indicating the same was delivered to a common carrier engaged in interstate commerce or to the U.S. Postal Service. If said merchandise is delivered to another state by a wholesaler using its own transportation, said wholesaler shall retain a receipt signed by the purchaser from the other state. Evidence of payment by a party purchasing export beer shall be on file with the wholesaler to verify export sales.

(7) The following are allowable as deductions if properly documented when the wholesaler computes monthly beer tax liability:

(a) Sales to military installations or sales for export when properly documented.

(b) Breakage or unsaleable merchandise verified by ABC Board representatives.

(c) Merchandise lost through break-ins and/or robberies when supported by police investigation reports, as well as any other documents or information as required by the Board.

(d) Merchandise short shipped by the brewery or importer and merchandise returned to the brewery or importer only when supported by a credit memorandum therefrom. The credit memorandum must reference the quantities and package sizes of beer involved in the shipping errors or return allowance for the computation of tax credits and must not list solely the dollar credits to the wholesaler.

(e) Other appropriate circumstances when approved in writing by the ABC Board.

(8) In addition to the above, each wholesaler shall maintain the following minimum information:

(a) Inventory reports containing merchandise on hand at the beginning of the month, merchandise received during the month, merchandise disposed of during the month and merchandise on hand at the end of the month with the brands, case sizes, and quantities included. All information contained in the inventory reports shall be supported through adequate documentation. Reports shall be completed on a monthly basis.

(b) Schedule of sales of beer to military installations during the month.

(c) Schedule of promotional/advertising beer delivered during the month.

(d) Schedule of retail sales of beer made during the month.

(e) Schedule of export sales of beer made during the month.

(f) Schedule of sales of beer to employees during the month. The information required by 8(a)-(f) herein shall be retained by the wholesaler and documented in a manner approved by the ABC Board.

(9) Each wholesale beer licensee shall maintain with the ABC Board current listings of all items distributed by brand, label and size container.

(10) Wholesalers shall provide a suitable place for conducting examinations of records at their principal place of business during customary business hours.

(11) ABC Board personnel will observe and validate counts of wholesalers when taking periodic inventories of beer on hand used for audits and wholesalers will supply other necessary information as required. Inventories taken by the wholesaler and observed by ABC Board personnel shall be verified, signed, and dated when the inventory is completed by all parties. The wholesaler shall ensure the correctness of any inventory. Inventory counts and information shall not be changed or substituted after ABC Board personnel depart the wholesaler's premises.

(12) All records as to receipt of beer, inventories on hand and sales of beer shall be available from the wholesaler to the ABC Board upon request. Said records shall include but not be limited to: purchase invoices, bills of lading, transfers, sales invoices, bank deposits, canceled checks, and bank statements. Records shall be maintained by the wholesaler for the period of time specified by Section 28-3-7, Code of Ala. 1975.

Ala. Admin. Code r. 20-X-9-.02

Repealed and New: Filed August 21, 1998; effective October 16, 1998.

Amended by Alabama Administrative Monthly Volume XL, Issue No. 01, October 29, 2021, eff. 12/13/2021.

Author: ABC Board

Statutory Authority:Code of Ala. 1975, §§ 28-3-7 through 28-3-12; 28-3-45; 28-3-49.