Annual Special Tax Renewals are Due July 1st
By Betty Oldiges (513)684-3688

ATF has mailed the preprinted Annual Special Tax Renewal Registration and Return packages for Tax Year 2003 to 291,684 taxpayers, representing 409,282 business locations. Special tax is paid for each business location at a tax rate ranging from $250 for alcohol beverage retail dealers to $1,000 for alcohol and tobacco manufacturers and producers. Certain firearms importers and manufacturers also pay the tax.

Special tax is occupational tax imposed by the Internal Revenue Code and ATF is responsible for collecting the tax. A tax return and payment is due upon initially commencing business activities and again each year by July 1. The tax year runs July thru June 30. Special tax is different from many other taxes and is paid in advance of taxable business operations and not after the fact. It is important that taxpayers file their tax returns and pay special tax timely to avoid penalty and interest.

Businesses liable for the special tax that have not received the preprinted form should contact the National Revenue Center toll free at 1-800-937-8864 or direct at (513)684-2979 between the hours of 8:30 a.m. and 4:30 p.m., Eastern time, for assistance and to obtain forms and instructions. Businesses may also contact the nearest ATF Field Division or Headquarters Office for assistance. ATF Form 5630.5, Special Tax Registration

and Return can also be downloaded and printed from the ATF website www.atf.treas.gov.

Regulations Corner

Viticultural Area Petitions

By Nancy Sutton (415)947-5192

Vineyard industry member and associations are petitioning for new viticultural areas in large numbers, with the Regulations Division considering 33 petitions. These industry groups and individuals believe their market place success is linked to viticultural area claims for their grapes that can be used on wine labels.

Petitioning trends include proposals for wine grape-growing areas in states with no other approved viticultural areas, for smaller wine grape-growing regions with larger viticultural areas, and for re-alignment of existing viticultural areas. Petitioners in Idaho, North Carolina and Minnesota, otherwise known for their potatoes, tobacco and lakes, have filed their States' first viticultural area petitions. Six petitions are being considered for areas within Oregon's Willamette Valley viticultural area. Nine California wine grape-growing regions, located in larger viticultural areas, are in the petitioning process. Several petitions are requesting expansion of established viticultural areas to include vineyards and land adjacent to the original boundaries. Hopefully not a trend, three petitions from the West Coast include the names Red Hill or Red Hills.