TECHNICAL ADVICE MEMORANDUM
Subject: Sales of Alcoholic Beverages on Military
Bases/Clarification of Existing Policy
Schedule: Alcoholic Beverage Taxes - Article 2C, Schedule B-C
Statute: N.C.G.S. 105-113.81 & 105-113.83
Issued By: Corporate, Excise, and Insurance Tax Division
Date: February 25, 1997
Reference: CTAM 97-02
This is to clarify the existing policy of the Department of Revenue regarding
the payment of beer and wine excise taxes by wholesalers selling to civilian
accounts on military bases in North Carolina.
The requirements for the monthly filing and payment of excise taxes on malt
beverages and wine by the resident wholesaler or importer who first handles
the beverages in this State are found under G.S. 105-113.83 of the Revenue Laws
of North Carolina. G.S. 105-113.81 exempts wholesalers and importers from remitting
excise taxes on malt beverages and wine sold to the United States Armed Forces.
While the revenue law clearly exempts sales to the military, it does not speak
to sales to civilian accounts on military installations. However, in 1947 the
United States Congress passed the "Buck Act", 4 U.S.C.A., G.S. 105 et.seq.,
which gives the states the power to collect taxes in a federal area. Court decisions
interpreting the application of this Act make it clear that taxes imposed on
products sold by contractors on military installations are subject to state
tax to the same extent the contractor would be liable for tax if the contractor
were operating off the installation.
Therefore, it is the Department's position that the exemption from excise
taxes on malt beverages and wine sold to the United States Armed Forces does
not extend to civilian accounts operating on military installations and that
the State has been granted authority to collect such excise taxes by the "Buck
Act". It is on this basis that a resident wholesaler or importer is subject
to excise taxes on sales of malt beverages and wine to civilian accounts on
Last modified on: 10/31/07 03:36:05 PM.