What is the difference between Taxable and Non-Taxable Alcohol?
Pure alcohol is considered taxable alcohol. The Federal Govt. requires an excise tax of $13.50/ proof gallon (200 proof, pure alcohol = $27.00/wine gallon). A tax exempt certificate is required to be on file with Pharmco for us not to charge the Federal excise tax on pure alcohol. The excise tax is paid immediately to the Federal Govt. Pharmco Products does not make any profit from collecting or handling the excise tax, nor does it receive a portion of it as a fee. This is why Pharmco has strict policies regarding payment of the excise tax. All other denatured Ethanol products do not require the payment of a Federal Excise Tax. Only customers with an exemption from paying the Federal Excise Tax on Alcohol are free from paying this tax. Eligibility for exemption is determined by the BATF and not Pharmco.
