Sales Tax Information for Licensed Retailers

Starting July 1, 2007, the prices of liquor, wine, and heavy beer at the liquor stores and package agencies will NO LONGER include sales tax. Licensed retailers (licensees) and certain permit holders will now be able to purchase liquor from the department without paying the sales tax.

The DABC Commission has established rules for liquor ordering procedures for licensees and permit holders that must be followed. As of July 1, 2007, the liquor stores will no longer charge sales tax to licensees and certain permit holders who order by following these procedures.

Click here for an explanation of the liquor order procedures.

The sales tax will be added at the cash register when members of the general public shop in a liquor store or package agency and bring their purchases to the cash register. Licensees and permit holders that make purchases at the cash register will be charged sales tax just like the general public.

Sales Tax Information for Package Agencies

Package agencies (Types 1,2,3,4,and 5) that buy liquor from the department (liquor store or warehouse) for resale will now be able to purchase it without paying the sales tax. Each package agency will be responsible for collecting the sales tax at the register and remitting it directly to the State Tax Commission. If package agencies have any questions about this procedure, contact Amy Hill at the Tax Commission at 801-297-2200.

Sales Tax Exemption Certificate

Licensees and Package Agencies that buy liquor, wine, and heavy beer from the DABC must file tax commission form TC-721 with the DABC.

Click here to access this form.

Once filed, the licensee and package agency can buy liquor, wine, and heavy beer exempt from sales tax at any DABC owned and operated state liquor store.

If a licensee buys from a local package agency that is a "contracted store" (not owned or operated by the DABC), the licensee has to file form TC-721 with the package agency in order to be able to purchase "sales tax exempt".