2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter A - Taxes (§§ 32421 — 32426) › § 32421 - Tax provision

An internal revenue tax shall be levied, collected, and paid once on the following products kept in a warehouse or which have been or may be, in the future, distilled, rectified, produced, manufactured, imported, or introduced to Puerto Rico at the following rate:
(a) Distilled spirits.—
(1) All those obtained through the fermentation and distilling of any product other than sugar cane byproducts shall pay a tax of thirty-one dollars and twenty-nine cents ($31.29) per wine gallon and a proportional tax at equal rate per fraction of wine gallon.
(2) All those obtained through the fermentation and distilling of any sugar cane byproduct shall pay a tax of fifteen dollars and twelve cents ($15.12) per wine gallon and a proportional tax at equal rate per fraction of wine gallon.
(3) All those obtained through the fermentation and distilling of any sugar cane byproduct and aged for a period equal to or greater than twelve (12) months shall pay a tax of twelve dollars and nine cents ($12.09) per wine gallon and a proportional tax at equal rate per fraction of wine gallon.
(4) Any handcrafted distilled spirit shall pay taxes as follows:
(A) In the case of handcrafted distilled spirit whose alcohol content is less than forty (40) percent alcohol by volume, a six dollar and thirty cent ($6.30)-tax shall be paid on each gallon, and a proportional tax at equal rate shall be paid of each fraction of a gallon;
(B) In the case of handcrafted distilled spirit whose alcohol content is equal to or more than forty (40) percent alcohol by volume, a twelve dollar and nine cent ($12.09)-tax shall be paid on each gallon, and a proportional tax at equal rate shall be paid of each fraction of gallon;
(5) The taxes imposed under this part for spirits obtained from sugar cane byproducts shall only apply when said spirits are pure, or when they have been mixed with spirits obtained from the fermentation and distilling of products other than sugar cane byproducts with an alcohol content that does not exceed one hundred twenty (120) degrees proof, used as ingredients in a proportion that does not exceed two and a half percent (2 ½%) for the manufacture of rum and in a proportion of five percent (5%) for the manufacture of other liquors.
(6) For a distilled spirit to qualify under clauses (3) and (4) of subsection (a) of this section, as a spirit derived from sugar cane and aged for a period of time equal or greater than twelve (12) months, or as a handcrafted distilled spirit, it shall be an indispensable requirement that the manufacturer, distiller or importer file, with the Bureau of Alcoholic Beverages and Licenses of the Department of the Treasury, a certification of the formula and process of the spirit issued by a government agency or entity with a rank or standing similar to that of the Alcohol and Tobacco Tax and Trade Bureau (TTB) or the Bureau of Alcoholic Beverages and Licenses of the Department of the Treasury of Puerto Rico. Furthermore, the manufacturer, distiller or importer shall file with the Bureau of Alcoholic Beverages and Licenses a certification from the TTB approving the label of the product. The Secretary or the official designated by him shall be authorized to order chemical tests or analyses, or tests or analyses of any other nature, to verify the correctness of any information regarding a formula registered with the Bureau of Alcoholic Beverages and Licenses.
(b) Wines.—
(1) On wines elaborated from concentrated must (excluding sparkling or carbonated wines, or imitations thereof) the alcohol content of which does not exceed twenty four percent (24%) by volume, a seven dollar ($7.00)-tax per wine gallon, and a proportional tax at equal rate per fraction of a wine gallon.
(2) On substandard wines whose alcoholic content by fermentation has been complemented by fortifying it exclusively with distilled spirits obtained from the fermentation or distillation of products derived from sugar cane (excluding champagne and sparkling and carbonated wines or imitation thereof,) and whose alcohol content does not exceed twenty-four (24) percent by volume, a two dollar ($2.00)-tax per gallon, and a proportional tax at equal rate per fraction of a gallon.
(3) On wine (excluding champagne and sparkling or carbonated wines) and cider, whose alcohol content does not exceed twenty-four percent (24%) per volume, a tax of twelve dollars and five cents ($12.05) per wine gallon, and a proportional tax at an equal rate on every fraction of wine gallon, shall be paid.
(4) On all simple or carbonated tropical fruit wines, whose alcohol content through fermentation has been complemented by fortifying them exclusively with distilled spirits obtained through the fermentation and distilling of sugar cane byproducts, whose alcohol content does not exceed twenty-four percent (24%) per volume, a tax of ninety seven cents (97¢) per wine gallon, and a proportional tax at an equal rate on every fraction of wine gallon, shall be paid.
(5)
(A) Champagne and sparkling wine.— On champagne and sparkling or carbonated wines whose alcohol content does not exceed twenty-four percent (24%) per volume, a tax of fourteen dollars and forty-five cents ($14.45) per each wine gallon, and a proportional tax at an equal rate on every fraction of wine gallon, shall be paid.
(B) On sub-standard sparkling or carbonated wines, or wines from concentrate must wines whose alcohol content does not exceed twenty-four percent (24%) by volume, a two dollars and fifty five cent ($2.55)-tax per each gallon, and a proportional tax at an equal rate on every fraction of a gallon.
(6) For wines manufactured outside of the United States or Puerto Rico to qualify as sub-standard wines, wines obtained from concentrated must, or wines made from tropical fruit, it shall be an indispensable requirement that the manufacturer or importer file, with the Bureau of Alcoholic Beverages and Licenses of the Department of the Treasury, a certification of the formula of said wines issued by a government agency or entity with a rank or standing similar to that of the Alcohol and Tobacco Tax and Trade Bureau (TTB) or the Bureau of Alcoholic Beverages and Licenses of the Department of the Treasury. Furthermore, the manufacturer or importer must file with the Bureau of Alcoholic Beverages and Licenses a certification from the TTB approving the label of the product. The Secretary or the official designated by him shall be authorized to order chemical tests or analyses, or tests or analyses of any other nature, to verify the correctness of any information regarding a formula registered with the Bureau of Alcoholic Beverages and Licenses.
(c) Beer.—
(1) On all beers, malt extract, and other analogous products, whether fermented or unfermented, whose alcohol content is half of one percent (½ of 1%) per volume, and does not exceed one and a half percent (11/2%) per volume, a tax of one dollar ($1.00) per each wine gallon, and a proportional tax at an equal rate on every fraction of wine gallon, shall be paid.
(2) On all beers, malt extract, and other analogous products, whether fermented or unfermented, whose alcohol content exceeds one and a half percent (11/2%) per volume, a tax of four dollars and thirty five cents ($4.35) cents per each wine gallon, and a proportional tax at an equal rate on every fraction of wine gallon, shall be paid, except as provided in § 32444 of this title.
(d) Transitory provision.— Any distiller, manufacturer, industrial plant, importer, or bonded warehouse that, at the effective date of this Code, has in stock any distilled spirits, wines, champagne, sparkling wines, carbonated wines, or beer subject to the payment of the tax established in this part, shall be bound to declare and pay said tax at the rates established in this part.
History —Jan. 31, 2011, No. 1, § 5021.01, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 148.