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Business Taxes Law Guide—Revision 2024

Alcoholic Beverage Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 14. Alcoholic Beverage Tax

Chapter 2. General Exemptions.


32051. Continuous transit through State. Alcoholic beverages in continuous transit through this State are exempt from the provisions of this part only while in continuous transit through this State in the possession or custody of common carriers. The board may require affidavits of any person on forms prescribed by the board and may require any such shipments to be checked in and checked out at the boundaries of the State. Any person refusing to make the affidavits required or refusing to check in or check out the alcoholic beverages is guilty of a misdemeanor.


32052. Industrial spirits and wine. No tax shall be imposed upon the sale of alcohol, distilled spirits, or wine by distilled spirits manufacturers, brandy manufacturers, rectifiers, industrial alcohol dealers, or wine growers for use in the trades, professions, or industries, but not for beverage use.

Complete information concerning sales of distilled spirits or wine for use in trades, professions, or industries by persons holding industrial alcohol dealers' licenses, distilled spirits manufacturers' licenses, brandy manufacturers' licenses, rectifiers' licenses, and wine growers' licenses shall be reported to the board each month by such licenses on forms prescribed by the board.


32053. Package sizes for exempt spirits. Except as provided in Section 23113 of the Business and Professions Code, alcohol or other distilled spirits sold for the uses mentioned in Sections 23111 and 23112 of that code may be sold free of the tax imposed by this part only when sold in packages of a capacity of larger than one gallon.

Distilled spirits sold in quart bottles for medicinal purposes not tax exempt.—The sale of distilled spirits in quart-size bottles is not exempt from taxation even though for medicinal use. National Distillers Products Corporation v. State Board of Equalization, (1947) 83 Cal.App.2d 35.


32054. Sales to common carriers. No tax shall be imposed upon the sale of alcoholic beverages by a licensee in this State to a common carrier or to a person licensed to sell alcoholic beverages on boats, trains, or airplanes operated by a common carrier when the alcoholic beverages are to be used without this State; nor in such case need the common carrier procure a license for purposes of purchasing alcoholic beverages from a licensed manufacturer, wine grower, rectifier, importer, or wholesaler.