Special Occupational Tax (SOT) Repeal

On August 10, 2005, President Bush signed into law the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users," Public Law 109-59. Section 11125 of the Act permanently repeals, effective July 1, 2008, the special (occupational) taxes on all alcohol occupations. The registration requirement for most alcohol occupations remain.

Special (Occupational) Tax for tobacco occupations has NOT been repealed, and registration and payment requirements remain in effect. All manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors must file TTB F 5630.5t and pay special (occupational) tax before commencing operations for the first time, and subsequently each year on or before July 1.

All alcohol beverage dealers must file TTB F 5630.5d before commencing operations for the first time. Also file TTB F 5630.5d when there is a change since your last registration and when you discontinue business.

Note to all industry members: Any liabilities incurred during periods prior to the repeal remain due and collectable. Use TTB F 5630.5a to register and pay liabilities incurred prior to the repeal, on alcohol occupations. Use TTB F 5630.5t to register and pay liabilities incurred on tobacco occupations, for all years.

If you have questions regarding the repeal of SOT or prior tax periods, please contact TTB's National Revenue Center at 877-882-3277.

Page last reviewed/updated: 03/19/2014