Rev. Rul. 54-514

Advice is requested whether a winemaker, having paid special tax as a liquor dealer at a general business office located at the same address as the winery at which place purchased wines and wines of his own production are sold, may claim exemption from special tax at a branch office at another location where wines of his own production only are sold.

A winemaker operates a bonded winery and at the same address operates as a liquor dealer selling both purchased wine and wine of his own production. Special tax as a wholesale and retail liquor dealer has been paid to cover sales at this address. The winemaker also sells wine of his own production at a branch office located in another city for which he claims exemption from special tax under the provisions of section 3250(g) of the Internal Revenue Code of 1939.

Section 3250(g) of the Internal Revenue Code of 1939 exempts from special tax winemakers who have qualified as such under the internal revenue laws and regulations and who sell wines of their own production where the same are made, or at the general business office of such winemaker, provided that no winemaker shall have more than one place of business for the sale of such wine that shall be exempt from the special tax.

The term `general business office' has been held to apply to an office of the winemaker where the general business of the company is carried on and such office would be within the statutory exemption provided that wines of his own production only are sold at such premises and the winemaker has no more than one place of business exempt from special tax for the sale of such wines.