Free Samples and tax

[3DogsBarking]

Maybe someone can clarify this. Is excise tax paid on free samples consumed on the brewery premises? If so, are these samples exempt if dispensed from a non-tax determination tank?

Cal Regulation 2554 makes it sound like there is no tax on samples if dispensed from other than a tax determination tank. However, regulation 2560 classifies samples as sales. I'm confused.

[GOOSE]

Hi-

I think we just called it 'destroyed on premises' if we used it to cook or whatever- before it went into the Tax tank.
Hope this helps.
Cheers,

GOOSE

[3DogsBarking]

I was considering promoting free samples at the brewpub. Many consumers are unaware that most breweries would be happy to give you a 1-2oz sample, and I feel consumers new to craft beer are way more willing to try something if it is free. Otherwise it is hard to get an American lager swilling consumer to try a black, brown, or even amber colored beer.