Liquor Gallonage Tax
Statutory Reference
Electronic Services
Sellers of Alcoholic Liquor
Definition
The tax is imposed on businesses that are manufacturers or importing distributors of liquor.
Tax Rate
Use the “Tax Rate Database” to determine the rate per gallon, based on the alcohol content.
Allowable Deductions
The following alcoholic beverages are exempt:
- Wine used by religious organizations for sacramental purposes
- Sales of alcoholic beverages in interstate or foreign commerce
- Sales for use aboard ships operating in foreign commerce outside the continental limits of the U.S.
- Sales to U.S. governmental agencies (military bases) in Illinois (e.g., military bases, veterans’ hospitals)
- Sales to licensed non-beverage users
- Losses incurred in bottling alcoholic liquors
- Alcoholic liquors destroyed (must be witnessed by a representative of the department)
Local Taxes
Home rule units may impose liquor taxes, which the department does not collect. For more information about these taxes, contact the unit of local government that imposes them.
Additional registration and bonding requirements
Liquor manufacturers or importing distributors must register with the Illinois Liquor Control Commission. The Department of Revenue assigns each licensee an internal account number. In addition, the department (not the Illinois Liquor Control Commission) issues permits to Non-beverage Users and licenses Warehouses. A bond is also required of the applicant in an amount that is two times that company's average monthly liability, with a minimum bond of $1000 and a maximum of $100,000.
Form/Filing & Payment Requirements
Most taxpayers file Form RL-26, Liquor Revenue Return, which is due the 15th day of the month following the month for which the return is filed.
Airlines file Form RL-26-A, Liquor Revenue Airline Return, which is due the 15th day of the month following the month for which the return is filed.
Taxpayers who are licensed as a direct wine shipper that sells wine to Illinois consumers must file Form RL-26-W, Liquor Direct Wine Shipper Return, which is due the 15th day of the month following the month for which the return is filed.
Electronic Payments
A taxpayer with an annual liability of $20,000 or more in the preceding calendar year must make tax payments by Electronic Funds Transfer.
Electronic Filing
Beginning January 1, 2003, a taxpayer who files and pays electronically can receive a discount. For more information refer to the RL-750, Electronic Filing - Liquor Returns.
Questions?
- Call us at: 1 217 782-6045
- Mail your RL-26 and attachments to:
ALCOHOL, TOBACCO AND FUEL DIVISION
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19019
SPRINGFIELD IL 62794-9019
