Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-255 - Carbonated beverage syrup tax

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains the carbonated beverage syrup tax
			 (syrup tax) as imposed by chapter 82.64 RCW. The syrup tax is an excise tax on
			 the number of gallons of carbonated beverage syrup sold in this state at
			 wholesale or retail. The syrup tax is in addition to all other taxes.
Except as otherwise provided in this rule, the provisions of
				chapters
				82.04,
				82.08,
				82.12 and
				82.32 RCW regarding definitions,
				due dates, reporting periods, tax return requirements, interest and penalties,
				tax audits and limitations, disputes and reviews, and all general
				administrative provisions apply to the syrup tax.
This rule provides examples that identify a number of facts and
				then state a conclusion regarding the applicability of the syrup tax. These
				examples should be used only as a general guide. The tax results of other
				situations must be determined after a review of all facts and
				circumstances.
(2)
What is carbonated beverage syrup?
Carbonated beverage syrup
			 (syrup) is a concentrated liquid that is added to carbonated water to produce a
			 carbonated beverage. "Carbonated beverage" includes any nonalcoholic liquid
			 intended for human consumption that contains any amount of carbon dioxide.
			 Examples include soft drinks, mineral waters, seltzers, and fruit juices, if
			 carbonated, and frozen carbonated beverages known as FCBs. "Carbonated
			 beverage" does not include products such as bromides or carbonated liquids
			 commonly sold as pharmaceuticals.
(3)
When is syrup tax imposed and how
			 is it determined?
Syrup tax is imposed on the wholesale or retail sales
			 of syrup within this state. The syrup tax is determined by the number of
			 gallons of syrup sold. Fractional amounts are taxed proportionally.
(a)
When should syrup tax be reported
			 and paid?
The frequency of reporting and paying the syrup tax coincides
			 with the reporting periods of taxpayers for their business and occupation
			 (B&O) tax. For example, a wholesaler who reports B&O tax monthly would
			 also report any syrup tax liability on the monthly excise tax return.
(b)
What if I sell both previously
			 taxed and nontaxed syrups?
Persons selling syrups in this state, some of
			 which have been previously taxed in this or other states and some of which have
			 not, may contact the department of revenue (department) for authorization to
			 use formulary tax reporting. Prior to reporting in this manner, the person must
			 receive a special ruling from the department that allows formulary reporting. A
			 ruling may be obtained by writing the department at
			 dor.wa.gov/content/ContactUs/Default.aspx; or
Taxpayer Information and Education
Washington State Department of Revenue
P.O. Box 47478
Olympia, WA 98504-7478
Persons selling previously taxed syrups should refer to
				subsections (5)(a) and (6) of this rule for information about an exemption or
				credit that may be applicable to such sales.