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OLR Research Report


January 28, 2009

 

2009-R-0068

REGULATION OF DISTILLERIES

 

By Meghan Reilly, Legislative Analyst

You asked for a summary of the statutes and related regulations that apply to distilleries in Connecticut, including (1) licensing and permitting requirements, (2) statutes relating to distribution and sale, and (3) tax ramifications of owning or operating that type of venture and selling distilled spirits.

SUMMARY

Liquor manufacturers must obtain a federal permit as well as a state permit from the Department of Consumer Protection (DCP) to manufacture and sell products in the state. Different permits exist for different manufacturers, with distinctions between distillers of beer, cider and apple wine, apple brandy and eau-de-vie, farm wineries, and brew pubs. Manufacturer permittees may wholesale products themselves or appoint a Connecticut wholesaler to distribute their products.

Shipment of alcoholic liquor also requires a permit. The out-of-state shipper's permit for liquor other than beer and the out-of-state small winery shipper's permit allow the sale of liquor to manufacturer and wholesaler permittees in this state. Both allow delivery or shipment of wine manufactured on-site directly to consumers in the state. Out-of-state shipper's permits for beer allow the sale of beer to manufacturer and wholesaler permittees in the state.

To commercially transport alcoholic liquor, an in-state transporter's permit is required. Holders of out-of-state shipper permits, out-of-state shipper permits for beer, and wholesaler permits may transport alcohol beverage into the state. Farm wineries may not transport alcoholic liquor in the state.

Sale of alcoholic liquor is regulated by DCP. No manufacturer or wholesaler permittee may sell or deliver without a permit. The calculation of minimum selling prices is set by statute. All brands and prices must be registered and filed with DCP. Manufacturers must also maintain complete records of shipments, sales, salaries, and contracts available to DCP.

Distributors must pay a tax on most sales within the states. Taxes vary by type of alcoholic liquor.

REGULATION OF MANUFACTURE

A distillery or liquor manufacturer must first obtain a Federal Basic Permit from the Alcohol & Tobacco Tax & Trade Bureau (TTB) and then a manufacturer permit from DCP in order to distill or manufacture and sell their product in this state.  Under CGS 30-16, distilleries and other manufacturers of alcoholic liquor may obtain a manufacturer permit, allowing the manufacture, storage, bottling, wholesale distribution, and sale of alcoholic liquor to permittees in the state and outside the state as permitted by law. Permits will be granted only if DCP approves the place of manufacture or the plans for the facility. The annual fee for a manufacturer permit is $1,600.

Manufacturer permittees may apply for an out-of-state shipper's permit to bring alcoholic liquor into any of its in-state plants or warehouses for reprocessing, repackaging, reshipment, or sale either within the state to independent wholesaler permittees or outside the state. This is also available to a permittee's subsidiary corporation owning plants and warehouses outside the state in which the permittee owns at least 85% of the voting stock.

Permittees may be subject to different requirements based on the alcoholic liquor they manufacture. Permitees for alcoholic liquor other than cider may apply for and receive a wholesaler permit (CGS 30-16(a)).

Beer

A manufacturer permit for beer limits the scope of operations of the holder to beer. It permits the storage of beer in any part of the state, and authorizes the offering and tasting, on the permittee's premises, free samples of beer brewed on-site. Offering and tasting is limited to visitors who have attended a tour of the permittee's premises. The law also authorizes the retail sale of sealed bottles or containers of such beer for off-site consumption. Sale is limited to sealed containers and bottles not exceeding eight liters of beer per customer, per day.

The annual fee for a beer manufacturer permit is $800 (CGS 30-16(b)).

Cider and Apple Wine

Manufacturers of cider not exceeding 6% alcohol by volume or apple wine not exceeding 15% alcohol by volume may receive a permit for such manufacture, storage, bottling, wholesale distribution, and retail sale to permittees and non-permittees in the state. The permit is subject to the approval of the place or plan of the place of manufacture by DCP.

The annual fee for a cider manufacturer's permit is $160 (CGS 30-16(c)).

Apple Brandy and Eau-de-Vie

Apple brandy and eau-de-vie permits limit the manufacturer's scope of operation to those products.

The annual fee for an apple brandy and eau-de-vie permit is $320 (CGS 30-16(d)).

Farm Wineries

A farm winery is a place or premises located on a farm in the state manufacturing and selling wine. The scope of operation for farm winery permittees is limited to wines and brandies distilled from grape products or other fruit products. This includes grappa and eau-de-vie (CGS 30-16(e)(1)). No licensed farm winery may sell any such wine or brandy not manufactured by such winery, except wine manufactured by another farm winery located in this state (CGS 30-16(e)(4)).

A farm winery permit authorizes:

1. the sale in bulk by the permittee from the premises where the products are manufactured;

2. the sale and shipment by the permittee of wine manufactured by the permittee to persons outside the state;

3. free samples to visitors and prospective customers for consumption on the premises;

4. the sale at retail from the premises of sealed bottles or containers of such wine or brandy for consumption off the premises; and

5. the sale at retail from the premises of such wine or brandy by the glass and bottle for consumption on the premises (CGS 30-16(e)(2)).

A town may, by ordinance or zoning regulation, prohibit any such offering, tasting, or selling at retail at any premises within its borders (CGS 30-16(e)(2)).

Manufacturers producing 100,000 gallons of wine or less annually are authorized to sell and ship wine manufactured by the permittee to a wine retailer in the original sealed containers of not more than fifteen gallons per container (CGS 30-16(e)(2)).

Permittees selling and shipping wine directly to a consumer in this state must:

1. ensure that the shipping labels on all containers of wine shipped directly to a consumer in this state conspicuously state the following: “CONTAINS ALCOHOL− SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”;

2. obtain the signature of a person age 21 or older at the address prior to delivery, after requiring the signer to demonstrate age by providing valid proof of identity;

3. not ship more than five gallons of wine in any 60-day period to any person in this state;

4. pay all sales taxes and alcoholic beverage taxes and file all sales tax returns and alcoholic beverage tax returns relating to such sales;

5. report to DCP a separate and complete record of all sales and shipments to consumers in the state, on a ledger sheet or similar form which readily presents a chronological account of such permittee's dealings with each such consumer;

6. not ship to any address in the state where the sale of alcoholic liquor is prohibited by local option pursuant to section CGS 30-9; and

7. hold an in-state transporter's permit pursuant to section CGS 30-19f or make any such shipment through the use of a person who holds such an in-state transporter's permit (CGS 30-16(e)(3)).

A farm winery permittee must produce on the premises or on property adjacent to and under the permittee's ownership and control an average crop of fruit equal to not less than 25% of the fruit used in the manufacture of the permittee's wine. An average crop is defined annually as the average yield of the permittee's two largest annual crops out of the preceding five years, except that during the first seven years from the date of permit issuance, an average crop is defined as three tons of grapes for each acre of vineyard farmed by the permittee (CGS 30-16(e)(5)).

Farm winery permittees must clearly and conspicuously state the permit number when advertising or offering wine for direct shipment to a consumer in this state via the Internet or any other on-line computer network (CGS 30-16(e)(6)).

The annual fee for a manufacturer permit for a farm winery is $240 (CGS 30-16(e)(7)).

Brew Pubs

A manufacturer permit for a brew pub allows the manufacture, storage, bottling, retail sale for on-site consumption with or without the sale of food, and the on-site retail sale of sealed bottles or other sealed containers of beer brewed on such premises for consumption off-site, provided that the holder of a manufacturer permit for a brew pub produces at least 5,000 gallons of beer on the premises annually.

On-site retail sale of sealed bottles or other sealed containers must comply with the provisions of subsection CGS 30-91(d) regarding holiday and Sunday sales. No more than eight liters of beer may be sold to any person on any other day on which such sale is authorized.

The annual fee for a manufacturer permit for a brew pub is $240 (CGS 30-16(f)).

REGULATION OF DISTRIBUTION

Manufacturer permitees may wholesale any product they manufacture or they may appoint Connecticut wholesalers to distribute the product. 

Out-of-State Shipper's Permits

An out-of-state shipper's permit for alcoholic liquor other than beer allows the sale of such liquor to manufacturer and wholesaler permittees in this state as permitted by law. Out-of-state shippers operating a farm winery producing not more than 100,000 gallons of wine per year may sell and ship their products to a wine retailer, in the original sealed containers, not more than 15 gallons per container.

The permit premises of an out-of-state shipper's permit for alcoholic liquor may be located within this state or outside this state (CGS 30-18(a)). “Out-of-state” means any state other than Connecticut, any territory or possession of the United States, the District of Columbia or the Commonwealth of Puerto Rico, but does not include any foreign country (CGS 30-18(f)).

The annual fee for an out-of-state shipper's permit for alcoholic liquor other than beer is $45 for a Connecticut manufacturer or wholesaler and $1,000 for any other person (CGS 30-18(a)).

An out-of-state shipper's permit for alcoholic liquor other than beer allows the sale and delivery or shipment of wine manufactured by the permittee on-site directly to a consumer in this state. Such permittee, when selling and shipping wine directly to a consumer in this state, must:

1. ensure that the shipping labels on all containers of wine shipped directly to a consumer in this state conspicuously state the following: “CONTAINS ALCOHOL−SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”;

2. obtain the signature of a person age 21 or older at the address prior to delivery, after requiring the signer to provide a valid identity card;

3. not ship more than five gallons of wine in any 60-day period to any person in this state and not ship any wine until such permittee is registered, with respect to the permittee's sales of wine to consumers in this state, with the Department of Revenue Services (DRS);

4. pay all sales taxes and alcoholic beverage taxes due on sales of wine to consumers in this state, and file all sales tax returns and alcoholic beverage tax returns relating to such sales, with the amount calculated as if the sale were in this state at the location where delivery is made;

5. report to DCP a separate and complete record of all sales and shipments to consumers in the state on a ledger sheet or similar form, presenting a chronological account of such permittee's dealings with each consumer;

6. permit DCP and DRS, separately or jointly, to perform an audit of the permittee's records upon request;

7. not ship to any address in the state where the sale of alcoholic liquor is prohibited by local option;

8. hold an in-state transporter's permit or make any such shipment through the use of a person who holds such an in-state transporter's permit; and

9. execute a written consent to the jurisdiction of this state, its agencies and instrumentalities and the courts of this state concerning the enforcement of this section and any related laws, rules, or regulations, including, but not limited to, tax laws, rules or regulations (CGS 30-18(b)).

DCP, in consultation with DRS, may adopt regulations to assure compliance with the above provisions (CGS 30-18(c)).

A holder of an out-of-state shipper's permit for alcoholic liquor other than beer must clearly and conspicuously include the liquor permit number in its advertising offering wine for direct shipment to a consumer in this state via the Internet or any other on-line computer network (CGS 30-18(d)).

Out-of-State Small Winery Shipper's Permit

An out-of-state small winery shipper's permit allows the sale of wine to manufacturer and wholesaler permittees in Connecticut as permitted by law. For shippers producing no more than 100,000 gallons of wine annually, the law allows the sale and shipment of such wine to a retailer in the original sealed containers of not more than 15 gallons per container (CGS 30-18a(a)).

The annual fee for an out-of-state winery shipper's permit for wine is $250 (CGS 30-18ag).

An out-of-state winery shipper's permit for wine allows the sale and delivery or shipment of wine manufactured by the permittee directly to a consumer in this state. Such permittee, when selling and shipping wine directly to a consumer in this state, shall:

1. Ensure that the shipping labels on all containers of wine shipped directly to a consumer in this state conspicuously state the following: “CONTAINS ALCOHOL−SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY;”

2. obtain the signature of a person age 21 or older at the address prior to delivery, after requiring the signer to provide a valid identity card;

3. not ship more than five gallons of wine in any 60-day period to any person in this state and not ship any wine until such permittee is registered with DRS;

4. pay all sales taxes and alcoholic beverage taxes due and file all sales tax returns and alcoholic beverage tax returns relating to such sales, with the amount of such taxes to be calculated as if the sale were in this state at the location where delivery is made;

5. report to DCP a separate and complete record of all sales and shipments to consumers in the state, on a ledger sheet or similar form which readily presents a chronological account of such permittee's dealings with each such consumer;

6. permit the DCP and DRS, separately or jointly, to perform an audit of the permittee's records upon request;

7. not ship to any address in the state where the sale of alcoholic liquor is prohibited by local option;

8. hold an in-state transporter's permit pursuant or make any such shipment through the use of a person who holds such an in-state transporter's permit; and

9. execute a written consent to the jurisdiction of this state, its agencies and instrumentalities and the courts of this state concerning the enforcement of this section and any related laws, rules, or regulations, including tax laws, rules or regulations (CGS 30-18a(b)).

DCP, in consultation with DRS, may adopt regulations to assure compliance with the above provisions (CGS 30-18a(c)).

A holder of an out-of-state winery shipper's permit for wine must clearly and conspicuously state such liquor permit number when advertising or offering wine for direct shipment to a consumer in this state via the Internet or any other on-line computer network (CGS 30-18a(d)).

Applicants for an out-of-state winery shipper's permit for wine or for the renewal of such permit must furnish an affidavit to DCP affirming whether the out-of-state winery that is the subject of such permit produced more than 100,000 gallons of wine during the most recently completed calendar year (CGS 30-18a(f)).

Out-of-State Shipper's Permit for Beer

An out-of-state shipper's permit for beer allows the sale of beer to manufacturer and wholesaler permittees in this state. The permit premises of an out-of-state shipper's permit for beer may be located within this state or outside this state.

The annual fee for an out-of-state shipper's permit for beer is $45 for a Connecticut manufacturer or wholesaler and $1,000 for any other person holding such a permit (CGS 30-19).

In-State Transporter's Permit

An in-state transporter's permit for alcoholic liquor allows the commercial transportation of any alcoholic liquor.

No person, corporation, trust, partnership, incorporated or unincorporated association, or any other legal entity may transport any alcoholic beverages imported into this state unless such person holds an in-state transporter's permit and the tax imposed on such alcoholic liquor has been paid. This does not apply to (1) the holder of an out-of-state shipper's permit for alcoholic liquors (CGS 30-18) or an out-of-state shipper's permit for beer (CGS 30-19); (2) the holder of a manufacturer's permit (CGS 30-16) other than the holder of a manufacturer's permit for a farm winery; and (3) the holder of a wholesaler's permit (CGS 30-17) (CGS 30-19f(b)).

The annual fee for an in-state transporter's liquor permit is $1,000 (CGS 30-19f(a)).

An in-state transporter, when shipping or delivering wine directly to a consumer in this state, must:

1. ensure that the shipping labels on all containers of wine shipped directly to a consumer in this state conspicuously state the following: “CONTAINS ALCOHOL−SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”;

2. obtain the signature of a person age 21 or older at the address prior to delivery, after requiring the signer to provide a valid identity card; and

3. not ship to any address in the state where the sale of alcoholic liquor is prohibited by local option (CGS 30-19f(c)).

Violations are punishable by a fine of not more than $2,000 for each offense (CGS 30-19f(d)).

REGULATION OF SALE

No alcoholic liquor my be sold or delivered by any wholesaler or manufacturer permittee except from his permit premises, unless the permittee has first received and inventoried the alcoholic liquor from the delivery truck into the warehouse (Regs. Conn. State Agencies 30-6-B9). No manufacturer or wholesaler permittee may sell alcoholic liquors on consignment without a permit. The return of the alcohol must be within 30 days of the expiration of the permit (Regs. Conn. State Agencies 30-6-B13).

Prices

The minimum selling price from out-of-state shipper, wholesaler or manufacturer permittees to a wholesaler must not be below the cost of such liquor. For domestic alcoholic liquor, cost is the total of (1) the cost of spirits and all other ingredients, (2) all transportation charges, (3) all applicable federal and state taxes, and (4) the cost of containers, labels, caps, closures, all bottling charges and labor. For imported alcoholic liquor, cost is the total of (1) the invoice price from the supplier, (2) the cost of all other ingredients, (3) the cost of duties, (4) all applicable federal and state taxes, (5) insurance, (6) ocean freight and brokerage charges, (7) all transportation charges, and (8) the cost of containers, labels, caps, closures and all bottling charges and labor (CGS 30-68i).

Out-of-state shipper, manufacturer or wholesaler permittees may not sell, offer for sale, solicit any order for or advertise any alcoholic liquor unless a schedule of suggested consumer resale prices for each brand of alcoholic liquor has been filed with DCP and is then in effect, unless written permission is granted by DCP (CGS 30-64(a)).

No manufacturer, wholesaler or out-of-state shipper permitttee may sell, offer for sale, ship, transport or deliver within this state any alcoholic liquors until (1) the name of the brand, trade name or other distinctive characteristic by which such alcoholic liquors are bought and sold is approved by DCP and (2) the name and address of the manufacturer thereof and the name and address of each wholesaler permittee who is authorized by the manufacturer or his authorized representative to sell such alcoholic liquors is registered with DCP.

Brand registration is valid for a period of three years. The fee is $100 for out-of-state shippers and $3 for Connecticut manufacturers for each brand registered. DCP will not approve the brand registration of any fortified wine which is labeled, packaged or canned so as to appear to be a wine or liquor cooler (CGS 30-63(a)).

Manufacturer, wholesaler or out-of-state shipper permittees may not discriminate by price or discount between one permittee and another on sales or purchases of alcoholic liquors bearing the same brand or trade name and of like age, size and quality (CGS 30-63(b)).

Price Lists

Manufacturer and wholesaler permittees must annually file a complete schedule, with each page of such schedule numbered in numerical order, duly verified by the permittee and attested by the backer if an individual or, if the backer is a corporation, by an officer of such corporation, of all alcoholic liquors offered for sale in Connecticut with DCP by December 12. These lists must contain with respect to each item:

1. beverage type and brand name;

2. container size;

3. the age or percent and type of neutral spirits;

4. the proof;

5. the number of bottles per case;

6. the bottle price and case price which shall include all customs, duties, federal taxes, state taxes and cost of delivery to the permittee; prices for sales to another manufacturer or wholesaler submitted on a separate schedule; and

7. the name of the publication or publications the prices will appear in or, if not published, an affidavit (Regs. Conn. State Agencies 30-6-B12(a)).

Manufacturer and wholesaler beer permittees must submit:

1. type of beverage;

2. the size of the container (barrel, half-barrel, quarter-barrel);

3. the number and size of bottles per case;

4. the container price and case price;

5. the name of the publication or publications the prices will appear in, or if not published, an affidavit (Regs. Conn. State Agencies 30-6-B12(a)).

Except in the case of still wines and sparkling wines, the case price is individual for each item and not in combination with another item. Schedules on multiple packages of still wines and sparkling wines contain the bottle price for each item contained in the multiple packages, the unit price, and the case price. The bottle price posted in such multiple package case must be the same as the bottle price posted in a case containing the one type and brand of wine. The set price will become effective on the first day of the calendar month following the filing date and, unless withdrawn or amended, is considered refiled and effective each month until the filing date of the next complete schedule (Regs. Conn. State Agencies 30-6-B12(b)).

No manufacturer or wholesaler permittee may sell or offer for sale any brand of alcoholic liquor which does not appear on his price schedule. All items listed must be bona fide offerings of the items set forth in the list and each manufacturer and wholesaler, upon request, must give DCP an inventory of any items on the list. All liquor sold in less than case units at wholesale must be sold at the per bottle price posted (Regs. Conn. State Agencies 30-6-B12(e)). A manufacturer or wholesaler posting prices on private labels must submit those prices on separate sheets distinctly marked “Private Labels.” (Regs. Conn. State Agencies 30-6-B12(h)).

Each price schedule must contain the statement that the manufacturer or wholesaler is a “present authorized distributor” of all brands on which prices are quoted. If for any reason a manufacturer or wholesaler files prices on any items or brands of which he is not an authorized distributor, such items or brands must be listed as “close-outs.” “Close-out” prices must be filed every three months and, if listed on more than three successive lists without DCP permission, will be removed from the list unless the distributor presents DCP satisfactory reasons (Regs. Conn. State Agencies 30-6-B12(i)).

A violation of any of the provisions of this section is punishable by suspension or revocation (Regs. Conn. State Agencies 30-6-B12(j)).

For alcoholic liquor other than beer, manufacturer, wholesaler and out-of-state shipper permittees must file monthly with DCP the bottle, can, and case price of any brand of goods offered for sale in Connecticut, setting the controlling price for such manufacturer, wholesaler, or out-of-state permittee for the month following such posting. For beer, each manufacturer, wholesaler and out-of-state shipper permittee must file monthly with DCP the bottle, can and case price, and the price per keg or barrel or fractional unit. Notice of all manufacturer, wholesaler and out-of-state shipper permittee prices will be given to permittee purchasers by direct mail, Internet web site or advertising in a trade publication having circulation among the retail permittees. Wholesaler permittees may give notice by hand delivery. Price postings with DCP are available for inspection until three o'clock p.m. of the first business day after the last day for posting prices (Regs. Conn. State Agencies 30-6-B12).

Amendments

Price changes and prices on new items may be filed on supplemental price schedules, which must be filed on or before the 12th day of any month, and the prices on such supplemental schedules are effective on the first day of the month following the filing date. One copy of such supplemental price schedules showing amended prices must be filed and only price changes and prices on new items should be listed (Regs. Conn. State Agencies 30-6-B12(c)).

No changes, corrections, or additions will be considered after the effective filing date, except in cases where obvious typographical errors have been made and except where otherwise allowed by statute (Regs. Conn. State Agencies 30-6-B12(d)).

A manufacturer or wholesaler may amend their posted price for any month to meet a lower price posted on the same brand or trade name and of like age, vintage, quality and unit container size if (1) the amended price posting is filed before 3:00 p.m. of the fourth business day after the last day for posting prices, (2) the amended posting shall not set forth prices lower than those being met, and (3) the permittee identifies in writing the specific posting being met. (CGS 30-63(c)).

Records

Manufacturer or wholesaler permittees must maintain a complete monthly record of all purchases made and shipments received of all alcoholic liquors, which including the number of cases, with inclusive serial numbers, from whom received, the type and brand name, the price and the date of delivery. These records must be maintained at all times on the permit premises and be made available to DCP. Refusal of a permittee to permit examination of the records is a violation of this section (Regs. Conn. State Agencies 30-6-B8).

Manufacturers must file with DCP a monthly record of sales and shipments of spirits to wholesalers, listing the number of cases of each brand, the size of the containers, and the name of the vendee. Alternatively, manufacturers may provide invoices or summaries which provide that information. Records, invoices or summaries must be accompanied by a statement from the manufacturer certifying that the documents submitted are a true and accurate statement of shipments made (Regs. Conn. State Agencies 30-6-B8a).

Every wholesaler permittee must submit to DCP, in duplicate, within five days of the date of delivery, an invoice of alcoholic liquors sold to nonpermittees for industrial purposes, disclosing the name of the seller, the name of the purchaser, the date of sale and the quantity and type of alcoholic liquor. The wholesaler permittee must keep on permit premises a separate account of all such transactions available for investigation (Regs. Conn. State Agencies 30-6-B10).

Wholesaler or manufacturer permittees must keep a record, either weekly or monthly, of all salaries, wages, expenses, allowances, bonuses, cash disbursements and gratuities, either in the form of cash or things of value, paid to any employees, agents or salesmen in the state of Connecticut. These records must be available for inspection by the agents of the liquor commission during business hours (Regs. Conn. State Agencies 30-6-B15).

Copies of any contract, franchise, or agreement between any out-of-state shipper permittee and any wholesaler or manufacturer permittee connected with the importation, purchase, sale or distribution of alcoholic liquors must be maintained and made available to DCP for at least two years (Regs. Conn. State Agencies 30-6-B16).

TAX RAMIFICATIONS

Distributors of alcoholic beverages must pay a tax to the state on all sales within the state of alcoholic beverages, except sales to licensed distributors, sales of alcoholic beverages which are transported to some point without the state, and malt beverages consumed on the premises covered by a manufacturer's permit, at the rates for the respective categories of alcoholic beverages listed below:

1. Beer or cider, $6 for each barrel, $3 for each half barrel, $1.50 for each quarter barrel and $0.20 per wine gallon or fraction thereof on quantities less than a quarter barrel;

2. Liquor, $4.50 per wine gallon;

3. Still wines containing not more than 21% of absolute alcohol, except as provided, $0.60 per wine gallon;

4. Still wines containing more than 21% of absolute alcohol and sparkling wines, $1.50 per wine gallon;

5. Alcohol in excess of 100 proof, $4.50 per proof gallon;

6. Liquor coolers containing not more than 7% of alcohol by volume, $2.05 per wine gallon;

7. Still wine containing not more than 21% absolute alcohol, produced by a person who produces not more than 55,000 wine gallons of wine during the calendar year, $0.15 per wine gallon, provided such person presents to each distributor of alcoholic beverages described in this section a certificate, issued by the commissioner, stating that such person produces not more than 55,000 wine gallons of wine during the calendar year. The commissioner is authorized to issue such certificates, prescribe the procedures for obtaining such certificates and prescribe their form (CGS 12-435).

A tax at the above rates is imposed upon the storage or use within this state of any untaxed alcoholic beverages in the possession of any person other than a licensed distributor or carrier for transit from without this state to a licensed distributor within this state. Any untaxed alcoholic beverages unaccounted for in transit, storage, or otherwise, are presumed to be used and consumed in this state by any person, including any distributor, carrier, warehouseman or consumer, last having possession of such untaxed alcoholic beverages (CGS 12-435b).

MR:ak