Delaware Code Title 4 Sec. 581 – Rates of tax
(a) All persons required to be licensed under this title as an importer shall pay a tax upon the sale of alcoholic beverages to any person who purchases alcohol from an importer in this State at the rates set forth in subsection (d) of this section.
Terms Used In Delaware Code Title 4 Sec. 581
- Alcohol: means ethyl alcohol produced by the distillation of any fermented liquid, whether rectified or diluted with water or not, whatever may be the origin thereof, and includes synthetic ethyl alcohol, but it does not mean ethyl alcohol, diluted or not, that has been denatured or otherwise rendered unfit for beverage purposes. See Delaware Code Title 4 Sec. 101
- Barrel: when used as a container for beer, means such container having a capacity of 31 United States standard gallons of 231 cubic inches. See Delaware Code Title 4 Sec. 101
- Beer: means any beverage containing more than 1/2 of 1% of ethyl alcohol by volume, obtained by the alcoholic fermentation of any infusion or decoction of barley malt and hops in water and includes, among other things, ale, porter, stout and other malt or brewed liquors. See Delaware Code Title 4 Sec. 101
- Commissioner: means the person appointed by the Governor and confirmed by the Senate who serves as the Alcoholic Beverage Control Commissioner for the State. See Delaware Code Title 4 Sec. 101
- Fermented beverage: means any product similar to beer, including sake and seltzer, containing ½ of 1% or more of alcohol by volume, brewed from substitutes for malt, including rice, grain, bran, glucose, sugar and molasses. See Delaware Code Title 4 Sec. 101
- Importer: means the person transporting or ordering, authorizing or arranging the transportation or shipment of alcoholic liquors into this State, whether the person is a resident or citizen of this State or not, said person being permitted to sell said alcoholic liquors only to those persons licensed to resell alcoholic liquors; provided, however, that nothing contained in this definition shall be construed as prohibiting an importer from selling such alcoholic liquors to either an active owner of that business for that person's use and not for resale or to a full-time, bona fide employee of that business for that person's use and not for resale; and provided further, that nothing contained in this definition shall be construed as prohibiting an importer from selling beer in "half-barrel" or "quarter-barrel" containers to the holders of a personal license. See Delaware Code Title 4 Sec. 101
- Manufacture: means distill, rectify, ferment, brew, make, mix, concoct or process any substance or substances capable of producing a beverage containing more than 1/2 of 1% of alcohol by volume and includes blending, bottling or other preparation for sale. See Delaware Code Title 4 Sec. 101
- Person: includes an individual, a partnership, a corporation, a club or any other association of individuals. See Delaware Code Title 4 Sec. 101
- Sale: means every act of selling as defined in this section. See Delaware Code Title 4 Sec. 101
- Spirits: means any beverage containing more than 1/2 of 1% of ethyl alcohol by volume mixed with water and other substances in solution, and includes, among other things, brandy, rum, whiskey and gin. See Delaware Code Title 4 Sec. 101
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
- United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
- Wine: means any beverage containing more than 1/2 of 1% ethyl alcohol by volume obtained by the fermentation of the natural contents of fruits, vegetables or other products and other vinous liquors, and also includes such beverages when fortified by the addition of alcohol or spirits as defined in this section. See Delaware Code Title 4 Sec. 101
(b) All persons licensed under this title to manufacture alcoholic beverages shall pay a tax on all alcoholic beverages sold to customers in this State at the rates set forth in subsection (d) of this section. This subsection shall not apply to sales to customers who are:
(1) Importers of alcoholic beverages subject to licensing under this title;
(2) Distributors of alcoholic beverages licensed by a state other than Delaware where the alcoholic beverages are sold for resale in such other state; or
(3) In the case of sales of beer, an instrumentality of the United States Armed Forces.
(c) Except as provided in subsection (a) or (b) of this section, any person who imports alcoholic beverages for consumption in this State shall pay to the Department of Finance the tax on such imports at the rates set forth in subsection (d) of this section.
(d) The tax payable under this section shall be as follows:
(1) For each barrel of beer or fermented beverage, $8.15.
(2) For each gallon of cider, $.27.
(3) For each gallon of wine, $1.63.
(4) For each gallon of spirits containing 25 % or less of ethyl alcohol by volume, $3.00.
(5) For each gallon of spirits containing more than 25 % ethyl alcohol by volume, $4.50.
(6) For each gallon of alcohol per gallon of ethyl alcohol contained, $8.15, except that the tax of $8.15 shall not apply to the purchase of alcohol by pharmacists, physicians, dentists, veterinarians, wholesale druggists or manufacturing plants where the alcohol is used in scientific work, for the manufacture of pharmaceutical products, or for use in the manufacture or compounding of preparations unfit for beverage purposes.
(e) The Commissioner shall make and publish such rules and regulations with respect to the collection and payment of the taxes imposed by this section as it deems proper, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law.
(f) For the months of August 2019 and July 2020, all persons required to be licensed under this title as an importer shall be entitled to a nonrefundable credit against the tax on alcoholic beverages imposed pursuant to subsection (a) of this section in an amount equal to 1/2 of the tax previously paid on such importer’s alcoholic liquor floor stock or inventory resting in the State on July 31, 2019, as reported in accordance with commission rules. Any amounts of credit not used by virtue of the preceding sentence may be carried forward and used against future tax imposed by this section. A person required to be licensed under this title as an importer shall not be entitled to the credit permitted pursuant to this subsection if such person fails to report such person’s alcoholic liquor floor stock or inventory resting in the State on July 31, 2019, on a timely-filed report.
38 Del. Laws, c. 18, § ?16; Code 1935, § ?6145; 43 Del. Laws, c. 274, § ?1; 4 Del. C. 1953, § ?581; 49 Del. Laws, c. 342, § ?13; 53 Del. Laws, c. 106; 57 Del. Laws, c. 136, § ?30; 57 Del. Laws, c. 741, § ?27C; 58 Del. Laws, c. 294, §§ ?1, 2; 58 Del. Laws, c. 584, § ?1; 62 Del. Laws, c. 113, § ?1; 67 Del. Laws, c. 258, § ?1; 68 Del. Laws, c. 107, §§ ?3, 4; 70 Del. Laws, c. 488, §§ ?1, 2, 5; 70 Del. Laws, c. 559, §§ ?5, 6; 71 Del. Laws, c. 211, § ?5; 72 Del. Laws, c. 486, § ?9; 78 Del. Laws, c. 251, § ?3; 81 Del. Laws, c. 54, § 1; 82 Del. Laws, c. 68, § 1; 83 Del. Laws, c. 36, § 4;