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Alcoholic Beverage Tax

Recent Update

Pursuant to the enactment of Am. Sub. H.B. 110, as passed by the 134th General Assembly, the following changes to the alcoholic beverage tax will become effective September 30, 2021. 

  • S permits (for direct-to-consumer sales) will be split into S-1 and S-2 permits.
  • The current 500,000-gallon wine exemption will apply to both S-1 and S-2 wine permit holders.
  • The alcohol credit for A-1c permit holders is now an exemption that applies to A-1c and S-1 beer permit holders.

What are the new S permits?

S-1 Wine
This permit is for taxpayers that sell wine direct to the consumer and have a total production, wherever produced, of less than 250,000 gallons.

S-2 Wine
This permit is for taxpayers that sell wine direct to the consumer and have a total production, wherever produced, of 250,000 gallons or more.

S-1 Beer
This permit is for taxpayers that sell beer direct to the consumer. This permit applies regardless of the amount of production.

Who qualifies for the wine exemption?

Previously, A-2 and A-2f permit holders with a total production, wherever produced, of less than 500,000 gallons are granted an exemption of taxes. These taxpayers only pay the 2 cent per gallon tax for the grape fund.

Am. Sub. H.B. 110 expands this exemption to include S-1 and S-2 wine permit holders with a total production, wherever produced, of less than 500,000 gallons.

The tax is due on the full amount if the permit holder does not qualify for the exemption.

Who qualifies for the beer exemption (previously a credit)?

Previously, A-1c permit holders received a credit against taxes levied on the first 9.3 million gallons sold or consumed in Ohio.

Pursuant to Am. Sub. H.B. 110, the credit was changed to an exemption for any A-1c or S-1 Beer permit holder with a total production, wherever produced, of 9.3 million gallons or less. If total production is 9.3 million gallons or less, no tax is due. However, if total production is greater than 9.3 million gallons, tax is collected on the full amount sold or consumed in Ohio.

Return Filing

A-1c Permit Holders

Prior to Am. Sub. H.B. 110, these taxpayers filed the ALC 83 A-1C. Beginning with returns due after October 1, 2021, A-1c permit holders will file the ALC 83. The form and instructions have been modified to accommodate the A-1c filers. Both should be carefully reviewed prior to filing.

S-1 Beer Permit Holders

These taxpayers will continue to file the ALC 83 as they always have. The form and instructions have been modified to account for the permit changes in Am. Sub. H.B. 110. Both should be carefully reviewed prior to filing.

S-1 Wine & S-2 Wine Permit Holders

These taxpayers will continue to file the ALC 37 as they always have. The form and instructions have been modified to account for permit changes in Am Sub. H.B. 110. Both should be carefully reviewed prior to filing.
 

Please contact the Excise & Energy Tax Division at ExciseEnergy@tax.state.oh.us or by calling (855) 466-3921 with any questions.

Additional Resources

Additional Resources