Special Occupational Tax

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Guidance on the SOT Repeal - Please Read

Effective July 1, 2005, payment of Special Occupational Tax (SOT) by retailers and other classes of taxpayers is suspended, but the registration requirement remains.  See our Press Release and FAQs.

If you sell beverage alcohol as part of your business, you must register annually. Beverage alcohol means distilled spirits, wine, beer, mixed drinks, and beer or wine coolers. The registration requirement applies to persons who sell on or off premises or who provide alcoholic beverages as part of the cost of an item or service. It applies even when you will not make a profit or when you are exempt from income tax. We have a list of businesses that may be subject to this requirement.

There are exceptions to the registration requirement. If you sell beverage alcohol only at bona fide fairs, reunions, picnics, carnivals, or similar outings, you do not need to register. In addition, if you are a fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization, you may sell on certain occasions of any kind of entertainment, dance, picnic, bazaar, or festival without registering.

You must register by filing form TTB F 5630.5. You can print or download the form directly from our forms Web page or you can request a packet with the form and instructions by calling our toll-free number at 800-937-8864 or local to 513-684-2979.

Learn more about special occupational tax and other requirements for retailers by reading TTB P 5170.2, Liquor Laws and Regulations for Retail Dealers of Beverage Alcohol Products.

You do not have to register or pay this tax if you are only dealing in retail sales of manufactured tobacco products.

Call 1-800-937-8864 if you need additional information or forms.