Ala. Admin. Code r. 20-X-9-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 20-X-9-.03 - Table Wine Wholesale Record Requirements

(1) All table wine wholesalers shall maintain records at their business, reflecting the following:

(a) All table wine received by supplier, brand name, number of cases, number of containers per case, liters per container, gallonage, manufacturer's invoice number and date received. All table wine 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 table wine received shall be recorded and reported to the ABC Board as a receipt in the month the table wine was received. Taxes shall be paid when due on levy of all receipts with deduction for all allowable credits.

(b) All table wine 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, volume per container, total liters per invoice, date of delivery, invoice number, the county and municipality where the sale or delivery occurred, and if required, the retail licensee's name, complete ABC license number, amount of sale, and name of any employee purchasing table wine. In all instances, the recipient of the table wine 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 table wine furnished at no charge as samples, gifts, and gratuities allowed under 20-X-8-.07(1)(a), and for promotional/advertising table wine 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 wholesaler, be offered a tasting of wine 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 table wine furnished in this manner.

(c) Sales invoices shall be prepared for sales made to military installations and must contain the information listed in (1)(a). In addition, all credits claimed for sales to military installations shall be evidenced by 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 provided by the military installation. The wholesaler must provide evidence of payment of the table wine sales with federal funds upon audit or disallowance of the credits will be made and the original taxes assessed.

(2) Any transfer of table wine from one Alabama wholesaler to another shall be reported by use of a transfer certificate furnished or approved by the ABC Board. The wholesaler first receiving the table wine from a manufacturer or importer shall be liable for any Alabama table wine 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 table wine wholesalers.

(3) The tax value of damaged, broken or otherwise unsaleable merchandise will be allowed as a deduction from the monthly table wine taxes due when computing any tax liability, but only when the destruction or evidence of breakage of said merchandise is witnessed by an ABC Board representative. 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.

(4) Exported table wine shall be subject to the levy of table wine taxes but not to the ultimate tax liability by the ABC Board. The wholesaler may claim credit against monthly table wine tax liability for merchandise exported if the export is made and documented in the following manner. 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 showing 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 table wine shall be on file with the wholesaler to verify export sales and may be in the form of check copies or check stubs.

(5) The following are allowable as deductions if properly documented when the wholesaler computes monthly table wine tax liability:

(a) Sales to military installations, sales for export and sales to the ABC Board.

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

(c) Merchandise lost through break-ins and/or robberies when supported by police investigation reports.

(d) Merchandise short shipped by suppliers and merchandise returned to suppliers only if supported by a credit memorandum from the supplier. The credit memorandum must list quantities, sizes, and volume to allow for the computation of tax credits.

(e) Other appropriate circumstances when approved in writing by the ABC Board. If any deductions taken cannot be verified by the ABC Board, the deductions will not be allowed and the tax on such table wine will be due and payable.

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

(a) Table wine stock reports which categorize 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. All information contained on such reports shall be supported by adequate documentation. Reports shall be completed on a monthly basis. The following schedules shall be prepared on a monthly basis as preliminary documentation for the stock totals.

(b) Schedule of sales of table wine to retailers during the month.

(c) Schedule of sales of table wine to military installations during the month.

(d) Schedule of sales of table wine for export during the month.

(e) Schedule of sales of wine to the ABC Board during the month.

(f) Schedule of promotional/advertising table wine furnished or delivered during the month.

(g) Schedule of sales of table wine to employees during the month. The information set out in 6(a)-(g) shall be kept in such form and contain such information as approved by the ABC Board.

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

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

(9) ABC Board personnel will observe and validate counts of wholesalers when taking periodic inventories of wine 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.

(10) All records as to receipt of wine, inventories on hand and sales of said wine 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 and canceled checks. 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-.03

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; 28-3-206.