§ 31.24 - Wholesale dealer in liquors.

(a) General. Every person who sells or offers for sale distilled spirits, wines, or beer to another dealer is, except as provided in paragraph (b) of this section, a wholesale dealer in liquors. Except during the suspension period described in § 31.21(b), every wholesale dealer in liquors is required to pay special tax at the rate specified in § 31.101 for such dealer, unless such dealer is exempt from such special tax as provided in paragraph (c) of this section. During the suspension period when no tax is due, the dealer must register by filing the special tax return, Form 5630.5, in accordance with § 31.21(b).

(b) Persons not deemed to be wholesale dealers in liquors. The following persons are not deemed to be wholesale dealers in liquors within the meaning of 26 U.S.C. chapter 51, and are not required to pay special tax (or to register during the suspension period described in § 31.21(b)) as such dealer:

(1) A wholesale dealer in beer as defined in § 31.26,

(2) A person who only sells or offers for sale distilled spirits, wines, or beer as provided in §§ 31.188 through 31.190 or § 31.192, or

(3) A person returning liquors for credit, refund, or exchange as provided in § 31.193.

(c) Persons exempt from special tax. (1) The following persons are exempt from special tax (and from registration during the suspension period described in § 31.21(b)) as wholesale dealers in liquors:

(i) A retail dealer in liquors who consummates sales of distilled spirits, beer or wine, or any combination thereof, to a limited retail dealer at the place where such retail dealer in liquors has paid the special tax (or has registered during the suspension period described in § 31.21(b)) as such dealer for the current tax year,

(ii) A retail dealer in beer who, having paid the special tax (or having registered during the suspension period described in § 31.21(b)) as such dealer for the current tax year, consummates sales at his place of business of beer to a limited retail dealer, or

(iii) A person who is exempt from such tax under the provisions of §§ 31.181 through 31.184.

(2) A wholesale dealer in liquors who has paid the special tax (or has registered during the suspension period described in § 31.21(b)) as such dealer at the place or places from which he conducts his selling operations is exempt from additional special tax (or from additional registration during the suspension period described in § 31.21(b)) on account of his sales of beer or wines to other dealers at the places of business of such dealers.