Ill. Admin. Code tit. 86, § 420.30 - Shipments of Alcoholic Liquors Out of Illinois
a) Pick-Ups in Illinois By Purchasers:
1) Manufacturers and importing distributors
of alcoholic liquor incur liquor gallonage tax liability when they deliver
alcoholic liquor in Illinois to a purchaser from another state, notwithstanding
the fact that the purchaser immediately takes or sends the liquor out of
Illinois for sale or use outside Illinois, if the liquor is destined for a
state into which the purchaser has no legal right, under the laws of such
state, to import such alcoholic liquor.
2) Illinois licensed manufacturers and
importing distributors of alcoholic liquor are not liable for payment of liquor
gallonage taxes when they deliver alcoholic liquor in Illinois to purchasers
who, in their own transportation equipment, immediately transport such
alcoholic liquor to a point outside Illinois for sale or use outside Illinois,
provided that the purchaser is authorized by the laws of the state of
destination to make such importation of alcoholic liquor into that state. When
claiming tax exemption under this paragraph, the manufacturer or importing
distributor shall identify such transaction as a "pick-up" on a separate
Schedule "C", "Tax-Free Alcoholic Liquor Sales in Interstate Commerce and
Foreign Trade", which shall accompany the Liquor Revenue Return filed with the
Department by such manufacturer or importing distributor, and each such
transaction shall be described in detail on each separate Schedule. To support
claimed tax exemption in the type of case under discussion, the manufacturer or
importing distributor shall retain, among his books and records, invoices,
delivery receipts, copies of reports (if any) required to be made by purchasers
to officials of the states into which the purchasers import such alcoholic
liquor and any other evidence which will assist in showing that the alcoholic
liquor in question was taken out of Illinois by a person who is authorized to
make such importation of alcoholic liquor into the state of destination. The
Department reserves the right to make such investigations and to require such
additional proof as it may deem necessary to establish the accuracy of claims
to tax exemption under this subsection (a)(2).
b) Shipments Out of Illinois by Manufacturers
or Importing Distributors:
1) Manufacturers
or importing distributors are not liable for gallonage taxes with respect to
any alcoholic liquors sold by them and shipped by them to points outside
Illinois for use outside this State. The burden of proof to sustain deductions
claimed on Liquor Revenue Returns and accompanying Schedules is on the
manufacturer or importing distributor who claims any such deduction.
2) In the event that alcoholic liquors are
transported, on order of the purchaser, from a point in this State to a point
outside this State by common carrier, the Department of Revenue may request and
will regard the original, a photostatic copy of the original or a certified
copy of a waybill, freight bill or bill of lading issued by such common carrier
and showing a destination outside Illinois, and requiring delivery outside this
State, as evidence in support of the deduction.
3) The term "common carrier" includes "common
carrier by motor vehicle" and for the purposes of this regulation "common
carrier by vehicle" means a carrier of property who acts generally and
continuously as a common carrier, and who has obtained a Certificate of Public
Convenience and Necessity or a Permit from the Interstate Commerce Commission
to engage in the transportation of property between points in different states.
No waybill, freight bill or bill of lading issued by any carrier by motor
vehicle other than a common carrier, as defined above, will be considered by
the Department as satisfactory evidence in support of a deduction.
4) In the event that alcoholic liquors are
transported by the seller in his own transportation equipment, on order of the
purchaser, from a point in this State to a point outside this State, the
Department may request and will regard the following as acceptable evidence of
such delivery outside this State:
A) If the
state in which such delivery is made by the seller or his agent requires the
purchaser in that state to file a report of his importations into that state,
then the Illinois seller must have a copy of such report by the purchaser,
relative to the delivery in issue, among such seller's books and
records.
B) If the purchaser's
state does not require him to file a report of the importation with officials
of such state, the seller must have, among his books and records, a copy of his
(the seller's) invoice covering the sale and delivery and an affidavit from the
purchaser stating that the alcoholic liquors covered by such invoice were
delivered by the seller or his agent and received on a specified date at the
designated out-of-State address, which address must be the address of premises
owned, leased or otherwise legally possessed by the purchaser.
i) However, if, upon investigation, the
purchaser is found not to be the owner, lessee or other lawful possessor of the
premises designated in the copy of the seller's invoice or other documents
required herein at the time of the purported delivery, the transaction will not
be regarded as a tax-free sale.
ii)
If the purchaser actually accepts delivery in this State, notwithstanding the
possession by the seller of any of the types of evidence referred to above, the
transaction will not be regarded as a tax-free sale even though the purchaser
transports such alcoholic liquors outside this State, unless the transaction
qualifies for exemption under subsection (a)(2) of this Section.
iii) In connection with any claimed exemption
from tax on the ground of interstate commerce, the Department reserves the
right to require such additional proof as may appear to be necessary.
Notes
Amended at 26 Ill. Reg. 830, effective January 03, 2003
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