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Alert Juneau Tax Division Office Mailing Address Update 

All mail sent to the Tax Division office in Juneau through the U.S. Postal Service must be addressed to P.O. Box 110420, Juneau, AK 99811. Beginning Oct. 1, the Post Office will not deliver mail to the division’s Willoughby Avenue address, and the mail will be returned to the sender. In those cases, tax returns and payments may miss their filing deadline. This change does not affect the Anchorage Tax Division office.

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Alcoholic Beverages Tax

Frequently Asked Questions





Sections:
  • General Questions



  • General Questions

    Who is liable for the alcoholic beverage tax?
    What are the alcoholic beverage tax rates?
    Do I have to pay the alcoholic beverage tax on alcohol I bring into Alaska for personal consumption?
    Are there any exemptions from the alcoholic beverage tax?
    How does a 'small brewery' obtain an exemption from tax at the higher rate?
    What are the penalties for failure to obtain an Alcoholic Beverage Warehouse License?
    I have a license with Alcoholic Beverage Control Board. Do I also need a license with the Alaska Department of Revenue, Tax Division?
    I have a license with the Department of Revenue but I didn't have any activity this month. Do I still have to file a monthly tax return?
    How do I file my tax return?


  • Who is liable for the alcoholic beverage tax?

  • Every brewer, distiller, bottler, jobber, retailer, wholesaler, or manufacturer who sells alcoholic beverages in the state or who consigns shipments of alcoholic beverages into the state, whether or not the alcoholic beverages are brewed, distilled, bottled, or manufactured in the state, shall pay the excise tax.

  • What are the alcoholic beverage tax rates?

  • The tax rates are:
    $1.07 per gallon for malt beverages, beer, and hard cider (ABV between 0.5% and 7%);
    $2.50 per gallon for wine and other beverages with 21% or less ABV;
    $12.80 per gallon for liquor with ABV greater than 21%;
    $0.35 per gallon for beer manufactured by small brewery approved by the Department of Revenue

  • Do I have to pay the alcoholic beverage tax on alcohol I bring into Alaska for personal consumption?

  • The alcoholic beverage tax is a tax on the sale of alcohol in Alaska. Alcohol imported for personal consumption is not taxed.

  • Are there any exemptions from the alcoholic beverage tax?

  • Yes, Sales to the military are exempt from the alcoholic beverage tax. The authority for this exemption is found at 4 United States Code Section 107. Entities, such as food and beverage service corporations that have contracts with any branch of the Armed Forces to provide alcoholic beverages over which the Armed Forces has no control, are not exempt from the excise tax, even if 100% of their sales were made to military personnel.

    Sales for religious and medicinal purposes. The authority for this exemption is implied under the provisions of AS 04.21.080(b)(1).It has been the position of the Alcoholic Beverage Control Board (ABC) that the statutory definition of an 'alcoholic beverage' does not include alcohol consumed for religious and medicinal purposes. Historically, the Tax Division has concurred with this finding.

  • How does a 'small brewery' obtain an exemption from tax at the higher rate?

  • A small brewery, may qualify to pay the reduced rate of 35 cents a gallon on sales of the first 60,000 barrels of beer sold in the state each fiscal year, in accordance with AS 43.60.010(c). The brewer must file with the Department a copy of a Bureau of Alcohol, Tobacco and Firearms acknowledged copy of the Brewer's Notice of Intent to Pay Reduced Rate of Tax required under 27 C.F.R. 25.167 for the calendar year in which the fiscal year begins for which the partial exemption is sought.

    If proof of eligibility is not received by the Department before June 1, the tax rate under this subsection does not apply until the first day of the second month after the notice is received by the Department.

  • What are the penalties for failure to obtain an Alcoholic Beverage Warehouse License?

  • If a person owns, consigns, stores, or allows the storage of alcoholic beverages, except in a licensed warehouse upon which the Alcoholic Beverage Excise Tax imposed has not been paid, that person is liable for the tax and is presumed to have committed fraud. In addition to the tax, a penalty will be imposed under AS 43.05.220(c).

    AS 43.05.220(c) states: If a tax deficiency or part of a tax deficiency is due to fraud, a civil fraud penalty equal to 50 percent of the tax due or $500, whichever is greater, shall be added to the tax. This penalty is in addition to penalties determined under (a) or (b) of this section.

  • I have a license with Alcoholic Beverage Control Board. Do I also need a license with the Alaska Department of Revenue, Tax Division?

  • Yes, the Department of Revenue (through the Tax Division) issues licenses authorizing the brewer, distiller, bottler, jobber, wholesaler, or manufacturer (liable for the payment of the tax) to sell alcoholic beverages in the state or to consign shipments of alcoholic beverages in the state.

    It is unlawful to sell alcoholic beverages in the state or to consign shipments of alcoholic beverages into the state without first furnishing the required bond and obtaining the license from the Department.

    The Alcoholic Beverage Control Board licenses beverage dispensaries, restaurants or eating places, clubs, pubs, recreational sites, common carrier dispensaries, and package stores for the sale of alcoholic beverages. ABC Board issues licenses based on population quota.

  • I have a license with the Department of Revenue but I didn't have any activity this month. Do I still have to file a monthly tax return?

  • Yes, licensees must file a tax return for every month, even for months with no sales or other activity.

  • How do I file my tax return?

  • Returns must be filed electronically using Revenue Online (https://www.online-tax.alaska.gov). A paper return may be filed only if you have a valid waiver approved by the Tax Division. If you do not have a waiver and file a paper return, you will be assessed a penalty of $25 or 1% of the total tax due, whichever is greater.



    If you have further questions, please contact our Anchorage office at 907-269-6620 or by email at dor.tax.alcohol@alaska.gov.