§ 24.270 Determination of tax.
(a)General. The tax on wine is determined at the time of removal from a bonded wine premises for consumption or sale. Section 5041 of 26 U.S.C., imposes an excise tax, at the rates prescribed, on all wine (including imitation, substandard, or artificial wine, and compounds sold as wine, which contain 24 percent or less of alcohol by volume) produced in or imported into the United States. Wine containing more than 24 percent of alcohol by volume is classified as distilled spirits and taxed accordingly. A wine product containing less than one-half of one percent alcohol by volume is not taxable as wine when removed from the bonded wine premises.
(b)Tax determined and paid on the volume of wine. The tax is determined and paid on the volume of wine:
(1) In bottles or other containers filled according to United States measure recorded to the nearest 10th gallon; or,
(2) In bottles or other containers filled according to metric measure, on the volume of wine in United States wine gallons to the nearest 10th gallon; or
(3) In the case of pipeline removals, on the volume of bulk wine removed recorded to the nearest whole gallon, five-tenths gallon being converted to the next full gallon.
(c)Tax rates imposed on wine. The following taxes are imposed on wine:
(1)Tax class 5041(b)(1). On still wines containing not more than 14 percent alcohol by volume, $1.07, per wine gallon;
(2)Tax class 5041(b)(2). On still wines containing more than 14 percent and not exceeding 21 percent alcohol by volume, $1.57 per wine gallon;
(3)Tax class 5041(b)(3). On still wines containing more than 21 percent and not exceeding 24 percent alcohol by volume, $3.15 per wine gallon;
(4)Tax class 5041(b)(4). On champagne and other sparkling wines, $3.40 per wine gallon;
(5)Tax class 5041(b)(5). On artificially carbonated wines, $3.30 per wine gallon; and
(6)Tax class 5041(b)(6). On hard cider, 22.6 cents per wine gallon. See § 24.331 for the definition of hard cider for purposes of determining eligibility for the hard cider tax class.
(d)Small domestic producer tax credit. For eligibility for the small producer tax credit, see §§ 24.278 and 24.279.