IDAPA 35.01.09.011 — BEER AND WINE SALES SUBJECT TO TAX (RULE 011)

Sections 23-1001, 23-1003, 23-1006, 23-1008, 23-1303, 23-1309A, 23-1314, 23-1319, Idaho Code
01.
In General. Sections 23-1008 and 23-1319, Idaho Code, impose an excise tax on beer sales by beer
wholesalers and wine sales by wine distributors for use or consumption in Idaho.
(4-6-23)
a.
Every disposition of beer by a wholesaler or wine by a distributor to a retailer or consumer
constitutes a sale for resale or use. Beer wholesalers or wine distributors are liable for the payment of taxes on the
sales. Any person making sales or dispositions of beer or wine, whether licensed or not, is liable for the taxes.
(4-6-23)
b.
Wine direct shippers are liable for payment of wine tax imposed by Chapter 13, Title 23, Idaho
Code, as well as the sales and use taxes imposed by Chapter 36, Title 63, Idaho Code, on all shipments of wine to
Idaho.
(4-6-23)
c.
Any brewer, brewery, producer, or manufacturer of beer within Idaho will be considered a beer
dealer within the meaning of the definitions provided in Section 23-1001(f), Idaho Code. However, to ensure
payment of tax on beer, any entity holding a brewery license will be considered a wholesaler to the extent of any
disposition from the brewery for the purpose of resale or consumption in, by, or through any retail facilities including,
tasting rooms on or near the brewery's premises.
(4-6-23)
d.
Any vintner, winery, producer, or manufacturer of wine within Idaho will be considered a wine
importer within the meaning of the definitions provided in Section 23-1303(1)(g), Idaho Code. However, to ensure
payment of tax on wine, any entity holding a winery license will be considered a distributor to the extent of any
disposition from the winery for the purpose of resale or consumption in, by, or through any retail facilities including,
tasting rooms on or near the winery's premises.
(4-6-23)
e.
Ales, beer, new beer, or any alcoholic beverage that meets the definition in Section 23-1001(a),
Idaho Code, containing more than five percent (5%) alcohol by volume are imposed an excise tax by Section 23-
1008(1), Idaho Code.
(4-6-23)
f.
Premixed cocktails with an alcoholic content of fourteen percent (14%) or less by volume are taxed
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.09
Idaho State Tax Commission
Idaho Beer & Wine Taxes Administrative Rules
Section 012
Page 4
at the wine tax rate.
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g.
Illegal Sales or Dispositions. In addition to the remedies of Sections 23-1055 and 23-1309, Idaho
Code, the Tax Commission may assess taxes against persons making illegal sales of beer or wine who otherwise
would be liable for payment of taxes.
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02.
Supplementing Inventory. If a brewery or winery supplements inventory, adequate records are
required to support any tax paid. The Tax Commission will presume no tax is paid on beer or wine in the inventory of
a brewery or winery without evidence of the payment of tax. Wineries are not supplementing their inventory when
purchasing wine or grape juice from other wineries to blend and produce wine.
(4-6-23)
03.
All Sales Presumed Taxable. Every sale or disposition from inventory is presumed to be a taxable
sale unless the sale or disposition is exempt from tax by the Acts or these rules.
(4-6-23)