Spirituous Liquor

What Sales and Use Tax is Due?

Retail sales of antique spirituous liquor and spirituous liquor other than mixed beverages are subject to the 7.00% combined general rate of sales and use tax.

Sales of spirituous liquor and antique spirituous liquor in North Carolina are generally made by an ABC Store or a distillery permit holder for consumption off the premises.

What is Spirituous Liquor?

Spirituous liquor is distilled spirits or ethyl alcohol, and any alcohol consumable containing distilled spirits or ethyl alcohol, including spirits of wine, whiskey, rum, brandy, gin and all other distilled spirits and mixtures of cordials, liqueur, and premixed cocktails, in closed containers regardless of their dilution.

What is Not Spirituous Liquor?

Alcoholic beverages that do not meet the definition of spirituous liquor include the following:

  • Mixed beverages; 
  • Straight shots of spirituous liquor or antique spirituous liquor;
  • Beer, whether by the drink or in closed containers;
  • Wine, including fortified wine, whether by the drink or in closed containers;
  • Malt beverages, whether by the drink or in closed containers.

The state, local, and transit rates of sales and use tax apply to the sales price of alcoholic beverages that are not spirituous liquor.

How to File and Pay?

For a business or person who is not registered with the Department and is required to collect and/or remit the sales or use tax on antique spirituous liquor or spirituous liquor, submit a completed Registration Application for Spirituous Liquor Tax, Form NC-SPLR, by mail to the Department.  Gross receipts derived from the sale of antique spirituous liquor or spirituous liquor and the 7.00% combined general rate of sales and use tax thereon are to be reported to the Department on Form E-500E, Combined General Rate Sales and Use Tax Return.

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