Liability for malt beverage & fortified and unfortified wine retail license

Subject:

Requested By: Larry D. Rogers, Director License and Excise Tax Division North Carolina Department of Revenue

Question: Does issuance of a "special one-time permit" by the Alcoholic Beverage Control Commission trigger liability for revenue licenses for the retail sale of malt beverages and fortified and unfortified wines?

Conclusion: No.

Pursuant to amendments effective on 1 January 1982, liability for the following revenue licenses is triggered by the holding of the following permits:

G.S. 18B-1001 provides that the Alcoholic Beverage Control Commission "may issue the following kinds of permits," including "On-premises Malt Beverage Permit," "Off-premises Malt Beverage Permit," "On-premises Unfortified Wine Permit," "Off-premises Unfortified Wine Permit," "On-premises Fortified Wine Permit" and "Off-premises Fortified Wine Permit."

In addition, G.S. 18B-1002(a) authorizes issuance of "Special One-time Permits" which shall be "valid only for the single transaction or the kind of activity specified in the permit." Such activities include the retail sale of malt beverages, unfortified wine or fortified wine, or brownbagging at a single fundraising event of a nonprofit organization.

Since a permit issued pursuant to G.S. 18B-1002(a)(2) authorizes the retail sale of those same beverages which are the subject of G.S. 105-113.83, G.S. 105-113.84, G.S. 105-113,85, and of

G.S. 18B-1001(1), (2), (3), (4), (5) and (6), the question has arisen whether issuance of a "Special One-time Permit" under G.S. 18B-1002(a) triggers liability for the tax under the abovereferenced sections of the Revenue Act. It is our opinion that it does not.

The words "On-premises Malt Beverage Permit," "Off-premises Malt Beverage Permit" and the like are terms of art having the meaning ascribed to them in G.S. 18B-1001. The context of that statute is that such permits will be used in on-going commercial activities. Virtually the same terms are used in G.S. 105-113.83 et seq. and it would appear that the Legislature would therefore have intended that they have the same meanings. "Special one-time permits" have reference to "single transactions" and in the case of G.S. 18B-1002(a)(2), to nonprofit fundraising activity.

Bearing in mind that G.S. 105-113.83 et seq. are taxing statutes, with ambiguities to be resolved in favor of taxpayers, we conclude that if the license taxes involved here had been intended to encompass "special one-time permits," those or essentially similar words would have been used in the revenue statutes. Since they were not, we conclude that issuance of such permits does not trigger tax liability for licenses issued pursuant to G.S. 105-113.83, G.S. 105-113.84 or G.S. 105

113.85.

Rufus L. Edmisten Attorney General

Myron C. Banks Special Deputy Attorney General