Beverage Container Pronouncement

Item 8.a in the Rules and Regulations of the Beverage Container Tax stipulates that “upon delivery of taxed beverages, distributors will provide dealers/retailers with a certification of taxes paid in a form approved by the City of Baltimore.”

As an alternative to the preformatted tax certificate form attached to the Rules and Regulations, distributors may utilize their invoice as a tax certificate provided that the following conditions are met.

  1. The invoice clearly states the name and address of the distributor.
  2. The invoice clearly states the name and address of the purchaser or retailer.
  3. The invoice states the transaction date.
  4. The invoice includes the distributor’s Baltimore City beverage container taxpayer identification number and is clearly identified as such.
  5. The invoice must include product itemizations and quantities. If itemized quantities on the invoice are provided in units other than individual beverage containers, then individual beverage container counts must be provided upon request of the Finance Department/City Auditor.
  6. The invoice clearly states the grand total of tax paid and/or the grand total unit count (individual containers) for all taxable containers listed on the invoice. This line is certification that the distributor is liable for and is paying the tax.

If the invoice is utilized as the Tax Certificate all of the above except item 6 must be in place on July 25. Invoices must contain item 6 after September 30th, 2010.

Returned Containers

In order for the distributor to receive credit for goods returned to the distributor, the following is required:

  1. The beverage container tax must have been previously remitted to the City for the returned goods.
  2. The distributor taking the credit must be the distributor who paid the tax originally.
  3. The amount of the tax paid for the returned goods should be netted against the taxable containers on the monthly report that is filed immediately after the product is returned.
  4. Distributors requesting credit for returned goods for which the beverage tax was paid, must keep and make available to the City appropriate records including credit memos to substantiate the returns.

Sample Containers

  1. Beverage containers distributed as samples are considered taxable. The value of the beverage is not of significance, but rather the fact that a container was delivered.
  2. If a beverage container is not left at the retailer, but remains in the possession of the distributor, it is not considered to be distributed in the City. 
  3. No more than 200 tax free samples may be provided to a retailer in a given year.