# COMAR Title 03 — Comptroller of the Treasury

## Subtitle 02 — Alcohol and Tobacco Tax

### Chapter 01 — Alcoholic Beverages

**Authority:** Tax-General Article §2-103, Annotated Code of Maryland

**Administrative History:** Effective date:

**Administrative History:** Regulation .01 effective December 1, 1972

**Administrative History:** Regulation .01 amended effective December 14, 1979 (6:25 Md. R. 1978)

**Administrative History:** Regulation .01A amended effective June 15, 1979 (6:12 Md. R. 1046); September 14, 1981 (8:18 Md. R. 1476); July 15, 1985 (12:14 Md. R. 1432)

**Administrative History:** Regulation .02 effective October 1, 1967

**Administrative History:** Regulation .02A amended effective July 12, 1987 (14:14 Md. R. 1570)

**Administrative History:** Regulation .02B amended effective January 31, 1983 (10:2 Md. R. 104)

**Administrative History:** Regulation .02E amended effective July 12, 1987 (14:14 Md. R. 1570)

**Administrative History:** Regulation .02F amended effective July 12, 1987 (14:14 Md. R. 1570)

**Administrative History:** Regulation .03 effective December 1, 1972

**Administrative History:** Regulation .03F amended as an emergency provision effective July 14, 1977 (4:16 Md. R. 1203)

**Administrative History:** Regulation .03F amended effective December 14, 1979 (6:25 Md. R. 1978); September 14, 1981 (8:18 Md. R. 1476)

**Administrative History:** Regulation .04 effective December 10, 1968

**Administrative History:** Regulation .04A amended effective November 16, 1979 (6:23 Md. R. 1838)

**Administrative History:** Regulation .05 effective March 1, 1974

**Administrative History:** Regulation .05G amended effective November 16, 1979 (6:23 Md. R. 1838)

**Administrative History:** Regulation .06 effective September 1, 1962

**Administrative History:** Regulation .06C, D adopted effective November 16, 1979 (6:23 Md. R. 1838)

**Administrative History:** Regulation .06D amended effective October 25, 1982 (9:21 Md. R. 2104)

**Administrative History:** Regulations .07 effective November 1, 1963

**Administrative History:** Regulations .08, .09 effective July 15, 1949

**Administrative History:** Regulation .10 effective December 1, 1972

**Administrative History:** Regulation .10A, C amended effective December 14, 1979 (6:25 Md. R. 1978); September 14, 1981 (8:18 Md. R. 1476)

**Administrative History:** Regulation .11 effective June 1, 1973

**Administrative History:** Regulation .12 repealed effective December 14, 1979 (6:25 Md. R. 1978)

**Administrative History:** Regulation .12 adopted effective October 17, 1980 (7:21 Md. R. 1992)

**Administrative History:** Regulation .13 adopted effective November 23, 1981 (8:23 Md. R. 1854)

**Administrative History:** Regulation .14 adopted effective October 16, 1989 (16:20 Md. R. 2179)

**Administrative History:** Regulations .01—.04 and .07—.12 amended effective August 6, 1990 (17:15 Md. R. 1853)

**Administrative History:** Regulation .02 repealed and new Regulation .02 adopted effective May 1, 1991 (18:8 Md. R. 863)

**Administrative History:** Regulation .02 repealed effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .03 amended effective October 1, 1996 (23:18 Md. R. 1315); October 5, 1998 (25:16 Md. R. 1527)

**Administrative History:** Regulation .03 amended as an emergency provision effective April 25, 2006 (33:15 Md. R. 1271); amended permanently effective October 9, 2006 (33:20 Md. R. 1611)

**Administrative History:** Regulation .03A amended effective May 1, 1991 (18:8 Md. R. 863)

**Administrative History:** Regulation .03D amended effective April 5, 2010 (37:7 Md. R. 569)

**Administrative History:** Regulation .04 amended as an emergency provision effective April 25, 2006 (33:15 Md. R. 1271); amended permanently effective October 9, 2006 (33:20 Md. R. 1611)

**Administrative History:** Regulation .04A, C amended effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulations .05, .06, and .13 repealed and new Regulations .05, .06, and .13 adopted effective August 6, 1990 (17:15 Md. R. 1853)

**Administrative History:** Regulation .05 amended effective March 1, 1997 (24:4 Md. R. 290)

**Administrative History:** Regulation .05 amended as an emergency provision effective April 25, 2006 (33:15 Md. R. 1271); amended permanently effective October 9, 2006 (33:20 Md. R. 1611)

**Administrative History:** Regulation .05B amended effective May 1, 1992 (19:7 Md. R. 745)

**Administrative History:** Regulation .05D amended effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .05F amended effective November 8, 2004 (31:22 Md. R. 1595); December 6, 2007 (34:24 Md. R. 2157)

**Administrative History:** Regulation .06C adopted effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .10 repealed effective October 1, 1996 (23:18 Md. R. 1315)

**Administrative History:** Regulation .11 amended effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .11 amended as an emergency provision effective April 25, 2006 (33:15 Md. R. 1271); amended permanently effective October 9, 2006 (33:20 Md. R. 1611)

**Administrative History:** Regulation .11 amended effective April 5, 2010 (37:7 Md. R. 569)

**Administrative History:** Regulation .12 amended effective May 1, 1991 (18:8 Md. R. 863); March 1, 1997 (24:4 Md. R. 290)

**Administrative History:** Regulation .13 repealed and new Regulation .13 adopted effective May 4, 1998 (25:9 Md. R. 678)

**Administrative History:** Regulation .13 amended as an emergency provision effective April 25, 2006 (33:15 Md. R. 1271); amended permanently effective October 9, 2006 (33:20 Md. R. 1611)

**Administrative History:** Regulation .14A, B amended effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .15 adopted effective October 1, 1995 (22:17 Md. R. 1316)

**Administrative History:** Regulation .15 amended effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .16 adopted effective December 16, 1996 (23:25 Md. R. 1784)

**Administrative History:** Regulation .16 amended effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .17 adopted effective September 22, 1997 (24:19 Md. R. 1339)

**Administrative History:** Regulation .18 adopted effective October 5, 1998 (25:20 Md. R. 1527)

**Administrative History:** Regulation .19 adopted effective March 1, 2007 (33:26 Md. R. 1995)

**Administrative History:** Regulation .20 adopted effective April 5, 2010 (37:7 Md. R. 569)

**Administrative History:** Regulation .20 amended effective February 16, 2015 (42:3 Md. R. 314)

**Administrative History:** Regulation .21 adopted effective April 5, 2010 (37:7 Md. R. 569)

**Administrative History:** Regulation .22 adopted effective April 5, 2010 (37:7 Md. R. 569)

**Administrative History:** Regulations .03—.09, .11— .22  recodified in new chapter COMAR 14.23.01 effective December 26, 2022 (49:26 Md. R. 1080)

**Administrative History:** Regulation .01A amended effective July 10, 2023 (50:13 Md. R. 511)

#### Regulation .01 Method of Tax Payment Applicable to Beer Delivered Into Maryland.

*COMAR 03.02.01.01*

A. Prepayment of Beer Tax. Beer may not be consigned into the State of Maryland, unless:

  (1) The consignor is the holder of a nonresident dealer's permit issued by the Alcohol and Tobacco Commission;

  (2) The permittee has furnished the Comptroller a suitable security;

  (3) All required beer taxes have been prepaid as provided in this regulation; and

  (4) All applicable provisions of Alcoholic Beverages Article and Tax-General Article, Annotated Code of Maryland, have been met.

B. Certificates to Evidence Prepayment of Tax.

  (1) Prepayment of Maryland beer tax by the holder of a nonresident dealer's permit shall be evidenced by certificates issued by the Comptroller.

  (2) Before consigning any beer into the State for consumption in the State, each holder of a nonresident dealer's permit shall obtain from the Comptroller a certificate denoting prepayment of the Maryland beer tax. The prepayment shall be in an amount equivalent to the Maryland beer tax paid by the holder of the nonresident dealer's permit for the total number of gallons of beer delivered during the immediate preceding months of July and August, provided, however, that if deliveries were not made in either or both of these months, or if the Comptroller shall find that the prepayment so computed is inadequate or excessive, the Comptroller shall determine the amount of the prepayment to be made before the issuance of the certificate. However, prepayment of the beer tax may not be required of a holder of a nonresident dealer's permit covering consignments to Classes E, F, and G licensees, or to the holder of a Maryland manufacturer's license. The beer tax on beer brewed outside the United States, unless prepaid as provided in this regulation, shall be prepaid through the acquisition of a tax prepayment certificate obtained from the Comptroller covering each individual order before delivery within this State.

  (3) Not later than the 15th day of each month, all nonresident dealers authorized to sell beer to Maryland licensed wholesalers shall file a complete and accurate beer tax return with the Comptroller covering all dispositions of beer into this State during the preceding calendar month. This return shall be accompanied by cash remittance covering the beer tax computed on it, less a deduction for taxes paid on dispositions of beer upon which the beer tax has been prepaid pursuant to §B(2) of this regulation on an individual order basis.

  (4) The Comptroller may at any time increase or decrease the amount of any prepayment of the beer tax made pursuant to §B(1), above, if it is found by the Comptroller that the amount of the prepayment is inadequate or excessive. If a nonresident dealer is required to increase the amount of beer tax prepayment, that nonresident dealer may not consign any additional amounts of beer into the State until a supplemental prepayment certificate has been issued denoting the additional prepayment of beer tax.

  (5) If the permit of a nonresident dealer expires, is surrendered, or is cancelled, the nonresident dealer may file a refund claim together with the original beer tax prepayment certificates with the Comptroller for the amount of the outstanding beer tax prepayment certificates. When the Comptroller is satisfied that all beer tax due under the Tax-General Article has been paid, together with any and all interest and penalties, the Comptroller may refund to the nonresident dealer any beer tax prepayment remaining.

C. Securities.

  (1) Every nonresident dealer engaged in the business of selling or delivering beer for consumption within this State shall file with the Comptroller a continuing security in the minimum penalty of $5,000. This security shall be in such form as required by Tax-General Article, §13-826, and shall be conditioned upon the payment of all taxes, penalties, and interest imposed by the Tax-General Article upon the sale or delivery of beer.

  (2) Securities filed under this Regulation shall be governed by the provisions of Tax-General Article, §§13-827—13-831.

#### Regulation .02 Repealed.

*COMAR 03.02.01.02*

#### Regulation .03 — .07 Recodified to COMAR 14.23.01.

*COMAR 03.02.01.03*

#### Regulation .08 . Credit or Refund of Taxes

*COMAR 03.02.01.08*

Maryland, may not be allowed to any licensee for the sale and delivery of any alcoholic beverage alleged to have been made

outside this State unless it shall be proved to the satisfaction of the Comptroller that:

A. The sale and delivery was made to a person, firm, or corporation authorized to receive the alcoholic beverages under the

B. Delivery.

  (1) The licensee is obligated to and delivers the alcoholic beverages to a licensed common carrier for transportation outside this State to the authorized purchaser;

  (2) The delivery to the regular place of business of the authorized purchaser actually is made by a vehicle owned by the licensee and regularly used by the licensee in the conduct of business; or

  (3) The delivery is made by contract carrier, previously approved by the Comptroller, to the regular place of business of the authorized purchaser.

#### Regulation .09 Recodified to COMAR 14.23.01.

*COMAR 03.02.01.09*

#### Regulation .10 Repealed.

*COMAR 03.02.01.10*

#### Regulation .11 — .22 Recodified to COMAR 14.23.01.

*COMAR 03.02.01.11*