Distilled Spirits Common Carrier Tax Return
General Information
The California Department of Tax and Fee Administration (CDTFA) administers the California Alcoholic Beverage Tax Law (Revenue and Taxation Code section 32001. et seq.) on behalf of the Board of Equalization. The law includes the state excise tax imposed on common carriers engaged in interstate or foreign passenger service making sales of distilled spirits in California. The tax rates as they relate to the sales of distilled spirits are located on the tax rates page for Special Taxes and Fees, under Alcoholic Beverage Tax.
Filing Requirements
Every licensed distilled spirits common carrier is required to electronically file a Distilled Spirits Common Carrier Tax Return on or before the first day of the second calendar month following the month in which the sales were made (Regulation 2541). A return must be filed each reporting period even if no tax is due. Remittance for the amount due must be submitted by the due date of the return. A copy of the return must be retained on the licensed premises for verification by CDTFA auditors.
Penalty and Interest
The following penalty charges may be assessed for filing a late return and/or late payment:
- Late-file penalty – Fifty dollars ($50) if the tax return is not filed by the due date.
- Late-pay penalty – Ten percent (10%) of the tax amount due if the tax is not paid by the due date.
- Late-file and late-pay penalty – Ten percent (10%) or fifty dollars ($50), whichever is greater, if the tax return is not filed and paid by the due date.
Return Preparation
The method for computing distilled spirits sales in California is based on the ratio that passenger miles in California bears to total passenger miles. The ratio of passenger miles in California may be adjusted by tests when significant changes occur in routes, schedules, or other operating conditions. The tests will be subject to review by CDTFA auditors.
All distilled spirits must be reported in wine gallons. Round the resulting figures to the nearest gallon.
Gallonage conversion factors:
- One milliliter = 0.000264172 gallons
- One liter = 0.264172 gallons
Distilled Spirits 100 Proof and Under
Total passenger miles. Enter the total number of passenger miles served during the course of this reporting period.
Passenger miles in California. Enter the total number of passenger miles served in California during the course of this reporting period.
Percentage of miles in California. The ratio of passenger miles served in California bearing to the total of passenger miles. The system will automatically calculate this field.
Total gallons of distilled spirits sold. Enter the total gallons of distilled spirits 100 proof and under sold during the course of this reporting period.
Total gallons of distilled spirits sold in California. The total gallons of distilled spirits 100 proof and under sold in California during the course of this reporting period. The system will automatically calculate this field.
Tax rate. The current excise tax rate for this reporting period. The system will automatically determine this field.
Subtotal – 100 proof and under. The total excise tax due for gallons of distilled spirits 100 proof and under for this reporting period. The system will automatically calculate this field.
Distilled Spirits Over 100 Proof
Total passenger miles. The total number of passenger miles served during the course of the reporting period. The system automatically populated this field with the value that was entered under total passenger miles from 100 Proof and Under.
Passenger miles in California. The total number of passenger miles served in California during the course of the reporting period. The system automatically populated this field with the value that was entered under total passenger miles from 100 Proof and Under.
Percentage of miles in California. The ratio of passenger miles served in California bearing to the total of passenger miles. The system will automatically calculate this field.
Total gallons of distilled spirits sold. Enter the total gallons of distilled spirits over 100 proof sold during the course of this reporting period.
Total gallons of distilled spirits sold in California. The total gallons of distilled spirits over 100 proof sold in California during the course of this reporting period. The system will automatically calculate this field.
Tax rate. The current excise tax rate for this reporting period. The system will automatically determine this field.
Subtotal – over 100 proof. The total excise tax due for gallons of distilled spirits over 100 proof for this reporting period. The system will automatically calculate this field.