| (a) Each permittee subject to the provisions of Alcoholic
Beverage Code §§201.03, 201.04, or 201.42, and each licensee
subject to the provisions of Alcoholic Beverage Code §203.01,
is entitled to receive a tax exemption or a tax credit for alcoholic
beverages destroyed in accordance with subsections (c) - (g) of this
section.
(b) Each permittee or licensee eligible to destroy
alcoholic beverages following a natural disaster pursuant to Alcoholic
Beverage Code §109.09, is entitled to receive a tax exemption
or a tax credit for alcoholic beverages destroyed in accordance with
subsection (i) of this section.
(c) To be claimed as a destruction for purposes of
receiving a tax exemption or a tax credit, the alcoholic beverages
must be destroyed in such a manner that the product is rendered unrecoverable
or unfit for human consumption.
(d) A permittee or licensee must comply with the following
requirements prior to the destruction of alcoholic beverages for which
a tax exemption or tax credit is claimed, unless it submits to the
commission a written request for an exception and receives approval
of the request prior to destruction:
(1) At least three full working days prior to the destruction,
the permittee or licensee must notify the nearest authorized representative
of the commission of the intent to destroy the alcoholic beverages.
This notification must be made in writing on the commission's Application
for Destruction of Alcoholic Beverages and contain a complete listing
by brand, quantity, container size, and package size of the alcoholic
beverages to be destroyed. This requirement for a complete listing
may be satisfied by attaching a computerized listing that provides
all the required documentation to the Application for Destruction
of Alcoholic Beverages.
(2) The permittee or licensee must receive written
approval from an authorized representative of the commission to conduct
the destruction.
(e) To support a claim for a tax exemption or tax credit
for a destruction, the permittee or licensee must retain the following
documentation and make it available to an authorized representative
of the commission upon request:
(1) a signed copy of the Application for Destruction
of Alcoholic Beverages indicating that it was approved, which an authorized
representative of the commission shall provide to the permittee or
licensee when the destruction is approved;
(2) if the alcoholic beverages were destroyed at a
location that charges a fee for this service, a copy of the receipt
for payment of the fee; and
(3) an affidavit of destruction executed by an employee
of the permittee or licensee who witnessed the destruction of the
alcoholic beverages. The affidavit must include the date of destruction,
the destruction location, and a description of how the alcoholic beverages
were destroyed. A separate affidavit must be prepared for distilled
spirits, wine, and malt beverages.
(f) The license or permit holder shall submit the approved
Application for Destruction of Alcoholic Beverages (including any
attachments) with the monthly excise tax report it files with the
commission upon which it claims the tax exemption for the destroyed
alcoholic beverages. If the permittee or licensee is unable to claim
the destroyed alcoholic beverages as an exemption on a tax report,
it may submit a letter to the commission requesting issuance of an
authorized tax credit.
(g) The license or permit holder shall maintain a copy
of the approved Application for Destruction of Alcoholic Beverages
(including any attachments) and make it available upon request for
inspection by an authorized representative of the commission.
(h) The commission may require that the alcoholic beverages
designated for destruction be physically inspected and inventoried
by a representative of the commission prior to the scheduled destruction
and/or that the actual destruction be witnessed by an authorized representative
of the commission.
(i) A permit or license holder may destroy uninsured
malt beverages subject to destruction under Alcoholic Beverage Code §109.09
only in compliance with the following requirements:
(1) the alcoholic beverages must be destroyed in such
a manner that the product is rendered unrecoverable;
(2) an employee of the permittee or licensee who witnessed
the destruction of the malt beverages must execute an affidavit of
destruction that includes the date of destruction, the destruction
location, and a description of how the alcoholic beverages were destroyed;
(3) not later than 30 days following the destruction
of malt beverages under this section, the permittee or licensee must
submit to the commission the affidavit required under paragraph (2)
of this subsection with a completed and signed commission form for
notification of destruction of uninsured product after a natural disaster;
and
(4) The permittee or licensee must retain the following
documentation and make it available to the commission upon request:
(A) a copy of the receipt for the cost of destruction,
if the malt beverages were destroyed at a location that charged a
fee for the service;
(B) a copy of the completed and signed Notification
of Destruction of Uninsured Product after a Natural Disaster; and
(C) a copy of all destruction affidavits executed by
the person who witnessed the destruction.
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