Tax Free Alcohol
Tax Free Alcohol, or TFA, refers to ethanol/ethyl alcohol that is 190 proof or higher. It is regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Authorized users include any:
- Scientific university or college of learning
- Educational institutions exempt from income tax under section 501(a) of the Internal Revenue Code
- Laboratory for use exclusively in scientific research.
Departments and laboratories that purchase TFA under the University industrial alcohol user permit must meet requirements to maintain this permit. TTB officials may audit authorized purchasers at any time.
NOTE: Researchers and other users are urged to substitute reagent-grade alcohol where possible to minimize the amount of recordkeeping and liability.
Prohibited Use of TFA
- Tax-Free alcohol may not be used for beverage purposes, or in any food product, or in any preparation used in preparing a beverage or a food product.
- Tax-Free alcohol may not be sold.
- Tax-Free alcohol may not be used in the manufacture of any product which will be sold or in any product resulting from the use of tax-free alcohol which will be sold.
- Tax-Free alcohol may not be removed from the premises authorized under the permit.
- Tax-Free alcohol may not be given to unauthorized users on UTD Campus.
Storage
The regulations require the secure storage of tax-free alcohol while unattended or removing an amount from the inventory for use. Secure storage includes:
- Cabinet under a fume hood
- Lockable flammable storage cabinet
- Locked lab where tax-free ethanol is stored
Records and Inventory
At UTD all users must be on the UTD Approved Users list maintained by OIRSP. To be added to the list, contact Safety@utdallas.edu. The TFA regulations require that all persons who obtain tax-free ethanol must maintain an inventory of the tax-free ethanol they have in storage and records of its use, sufficient to identify any lost, stolen or destroyed ethanol. All records must identify tax-free alcohol by proof, date of receipt/usage, and quantity involved. Records shall be kept current at all times. Report any discrepancies in the inventory to OIRSP.
- Approved user(s) list: Identifies authorized buyers from UTD
- Records of receipt: Consist of the invoice, bill or bill of lading, or another document used for the intended purpose. Records of receipt shall record the proof, date of transaction, and quantity of tax-free alcohol actually received.
- Records of usage: Identify the tax-free alcohol by quantity, proof, and purpose of removal.
- A physical inventory of tax-free alcohol in a labs possession must be taken annually. These inventories may be recorded separately or as an entry in the record of usage with any necessary adjustments (losses or gains).
Penalties
Use of tax-free alcohol in any manner prohibited including selling, removing from authorized premises will be required to pay the tax on the alcohol.
If a user is found utilizing Tax Free Alcohol differently than described above, the user will be removed from the UTD Approved Users list.