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Department of Taxation and Finance

New for 2020 and 2021: Changes are coming for alcoholic beverages tax (ABT) filers

Rate change

Effective June 1, 2020, the ABT rate on liquor containing 2% or less alcohol by volume is reduced to $0. ABT return filers will no longer be required to report this type of alcohol on their New York State ABT return for periods beginning on and after June 1, 2020.

New forms (available online only)

Form TP-218, Exemption for Alcoholic Beverages Interdistributor Transactions (available June 2020): New York State registered distributors will complete this form to document interdistributor sales exempt from the alcoholic beverages tax (ABT).

Form MT-456, Alcoholic Beverages Tax Return (available January 2021 for Annual 2020 and monthly December 2020 filers): We have simplified the following forms and their corresponding schedules and consolidated them into one return for all ABT filers:

  • Form MT-40, Return of Tax on Wines, Liquors, Alcohol and Distilled or Rectified Spirits
  • Form MT-50, Beer Tax Return (and Similar Fermented Malt Beverages)
  • Form MT-60, Cider Tax Return

This new form will require most of the same information you are used to filing but on one return for all alcoholic beverages.

Web File for ABT filers—coming in January 2021 (for Annual 2020 and monthly December 2020 filers)

Starting January 2021, New York State registered distributors will be able to file their returns faster and easier than ever before, using their Tax Department Business Online Services account.

Reminder: How to report quantities of alcoholic beverages on your ABT return

When you report quantities of alcoholic beverages on your ABT return, only include finished products. Do not include products that are aging or in the production process. This includes reporting lines for both beginning and ending amount on hand, along with the amounts purchased and produced.

If you previously included products in your amount on hand that were not yet finished products, beginning with your next filing period, report only finished products. This may result in a difference between your previous ending amount on hand and the new beginning amount of finished product on hand. You must keep an explanation in your books and records for the difference.

This correction will not result in a difference in the amount of tax that was or will be due.

Keep up to date

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