Liquor Drink Tax Frequently Asked Questions
Businesses can register for liquor tax through the Kansas Department of Revenue Customer Service Center.
Another option is to complete the Business Tax Application (CR-16). The application must be properly completed and signed. Fax the application to 785-291-3614 or mail to:
Kansas Department of Revenue
PO Box 3506
Topeka, KS 66601-3506
Liquor drink tax is a 10 percent tax imposed on the sale of drinks containing alcoholic liquor sold by clubs, caterers, or drinking establishments (including farm wineries, microbreweries, and microdistilleries also licensed as a drinking establishment selling to customers for on premise consumption). The 10 percent liquor drink tax is also imposed on the acquisition cost of alcoholic liquor used in free samples offered by clubs and drinking establishments. Liquor drink tax is imposed on alcohol sold for consumption on premise.
Liquor enforcement tax is an 8 percent tax imposed on alcoholic liquor and cereal malt beverages sold by retail liquor stores, microbreweries, microdistilleries, or farm wineries to Kansas consumers, or sold by distributors to Kansas clubs, drinking establishments or caterers. Liquor enforcement tax is imposed on alcohol sold for consumption off premise.
Liquor drink tax and liquor enforcement tax returns are due monthly, on the 25th day of the month following the month that the tax was collected. For example, liquor tax collected during the month of June would be reported on the June return due July 25th.
Your liquor return may be filed online through the Kansas Department of Revenue Customer Service Center or by using a paper return; LD-1 for liquor drink tax which can be found on our website at https://www.ksrevenue.org/bustaxtypesliqdrink.html or LE-3 for liquor enforcement tax which can be found on our website at https://www.ksrevenue.org/bustaxtypesliqenf.html.
Yes. You must file a return for each month, even when you are reporting zero tax.
Beer means a beverage containing more than 3.2% alcohol by weight, obtained by alcoholic fermentation of an infusion or concoction of barley, or other grain, malt and hops in water and includes beer, ale, stout, lager, porter and similar beverages having such alcoholic content.
Cereal malt beverage (CMB) means any fermented or undistilled liquor brewed or made from malt or from a mixture of malt or malt substitute or any flavored malt beverage . . . . but does not include any such liquor which is more than 3.2% alcohol by weight.
Beginning April 1, 2019, CMB retailers will be allowed to sell beer that does not contain more than 6% alcohol by volume. The sale of beer by CMB retailers is subject to Retailers’ sales tax.
Beginning April 11, 2019, retail liquor stores are allowed to sell CMB and other goods or services. Retail liquor stores will collect liquor enforcement tax on the sale of alcoholic liquor, CMB and non-alcoholic malt beverages.
Retail liquor stores will collect retailers’ sales tax on the sale of other goods or services.
All on premise liquor drink licensees are required to post a liquor drink tax bond that is equal to $1,000 or the three-months’ average liquor drink tax liability, whichever is greater. You may be required to increase your bond amount at any time if your three-months’ average liquor drink tax liability is greater than $1,000.
Bond amounts for off premise liquor enforcement licensees are determined by the Director of Alcoholic Beverage Control (ABC) and may vary by license type. Please refer to the ABC home page for more information regarding these bonds. https://www.ksrevenue.org/abcindex.html.
On premise licensees may post a cash, escrow or surety bond.
Off premise licensees may post an escrow or surety bond.
Bond relief can only be granted to on premise liquor licensees. Bond relief can be granted if the taxpayer has gone 24 consecutive months without any unpaid balances due, underpayments of tax, non-filed periods, late payments or returned checks on their liquor drink tax account. Instructions on how to apply for bond relief can be found on the Liquor Drink Tax home page. https://www.ksrevenue.org/bustaxtypesliqdrink.html.
Off premise licensees are required to keep a bond posted for the entirety of their license.
Once all liquor drink tax and liquor enforcement tax returns are filed and tax paid through the closing date of the business, the Kansas Department of Revenue will release the escrow or surety bond back to the licensee. If a cash bond is posted, the licensee must surrender the original cash bond receipt in order to receive a refund of the bond.