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Letter Ruling

Letter Ruling Letter Ruling 84-103: Alcoholic Beverages Sold by Veterans' Organization

Date: 11/27/1984
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Corporate/Sales and Use

November 27, 1984

You inquire as to when a veteran's organization will be subject to the excise on the gross receipts from the sales of alcoholic beverages, imposed by Massachusetts General Laws Chapter 63A.

Every corporation, association, or organization which is licensed by any city or town to sell alcoholic beverages, except a corporation subject to taxation under General Laws Chapter 63 and a chartered veteran's organization maintaining quarters for the exclusive use of its members, is subject to a gross receipts tax on the total proceeds from sales of all drinks of alcoholic content. (G.L. c. 63A, §§ 1, 2).

The local licensing authority of any city or town may "issue a license to any corporation the members of which are war veterans and which owns, hires or leases in such city or town a building, or space in a building for the use and accommodation of a post of any war veteran's organization incorporated by the Congress of the United States, to sell [all alcoholic beverages or only wines and malt beverages] to the members of such post only, and also, subject to regulations made by the local licensing authorities, to guests introduced by such members and to no others." (G.L. c. 138, § 12).

Chapter 138 permits veteran's organizations to be licensed to sell alcoholic beverages to their members and to guests of members only.

If a licensed veteran's organization sells an alcoholic beverage to an individual who is not a member (including someone who is a guest of a member), then such organization is subject to the excise imposed by Chapter 63A on its total proceeds from the sales of all drinks of alcoholic content.

Very truly yours,
/s/Ira A. Jackson
Commissioner of Revenue


LR 84-103

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