Connecticut Legislature Increases Alcoholic Excise Tax
By Timothy Rooney, Supervisor, Assurance Services
The 2019 regular session of the Connecticut General Assembly brought forth several changes in tax policy for the state of Connecticut. Included in this legislation was an increase of 10% in the excise tax assessed on various alcoholic beverages, including still wine, distilled liquors, cider, liquor coolers, and high-proof alcohol, effective October 1, 2019.
In Connecticut, excise tax on alcohol is ordinarily passed-on through the product price paid by bars, retailers, and restaurants when purchased from distributors and is, therefore, not separately paid to Connecticut by the retailer. However, as part of this legislation, Connecticut additionally imposed a new “floor tax” on alcoholic beverages already in the inventory of bars, retailers, and restaurants, as of the opening of business on October 1, 2019.
This tax is calculated by applying the 10% increase across all affected products held in inventory or ordered prior to that date and delivered between October 1 and October 8, 2019. The Department of Revenue Services (DRS) has published Form FT-AFT and the related Form FT-22-S to assist in the calculation of this floor tax. Form FT-AFT and all related payments are due to DRS by November 15, 2019.
For additional information regarding the 2019 Connecticut Floor Tax for Alcoholic Beverages, please contact your local Marcum tax professional.
Source: www.portal.ct.gov
