Alcohol Industry FAQ

Yes. Only products that are fit for beverage purposes and contain one-half of 1% or more of alcohol by volume are subject to the 9% rate. Other products, such as

If you buy a mixed drink that contains both alcoholic and non-alcoholic components, the sale of that beverage will be subject to tax at the 9% rate. However, the 9%

Effect on sales by exempt organizations: Sales of alcoholic beverages made by specific types of organizations listed in Tax General Article §11-204(b) are also exempt from the 9% tax on alcoholic

The tax must be separately calculated on sales of alcoholic beverages at the 9% rate and on sales of food, non-alcoholic beverages, and other merchandise at the 6% rate. The

For sales made between July 1, 2011 and June 30, 2012, if your sales include alcoholic beverages as well as other items, you must apportion the charge for the mandatory

To make direct wine shipments to Maryland residents, the law requires that a wine manufacturer be issued a direct wine shipper permit and the manufacturer comply with existing tax laws,

Yes. An inbound freight charge is part of the taxable price. If the inbound freight charge is imposed on the sale of an alcoholic beverage, then the vendor must collect

You may apportion the sales price between the alcoholic beverages and the other merchandise and charge the 9% sales and use tax on the taxable price of the alcoholic beverages

For sales made before July 1, 2012, itemized charges for equipment, supplies, and labor that are directly and predominantly related to the sales of alcoholic beverages should be taxed at

If you do not itemize your bill in the manner discussed in Question 15 and instead elect to bill a lump-sum price for the entire bill or per-person charge, you

Alcoholic beverage sales for specific events are subject to the 9% sales and use tax.

If the contract for the specific event is fully executed before July 1, 2011, and contains all material terms such as price, quantities, selections of food and beverages (alcoholic and

The tax, whether at the rate of 6% or 9%, must be charged by the caterer at the time the contract is executed. The caterer must then report and pay

You must apportion your sales price between the taxable price of the alcoholic beverages and the taxable price of the food and non-alcoholic beverages and charge the tax accordingly. If

The cost of the meal and any other related taxable charges will be taxed at the 6% rate. You must pay the 9% sales and use tax rate on your

That depends. If you pay a sales tax to the vendor in the state where you made the purchase and the rate of that tax is equal to or greater

Only the charge for the beer is subject to the 9% rate. Separately stated charges for rental of equipment are taxed at the 6% rate. If the equipment is not

Because a sale that is subject to both sales and use tax and admissions and amusement tax is capped at 11%, you must charge the 9% sales and use tax

This will depend on whether the charge for entry is truly an “admission” charge as opposed to being a charge for the sale of the wine. If you are allowed

The refillable containers (growlers) are tangible personal property and are subject to the 6% sales tax rate. The contents of the growler are subject to the 9% tax rate. If