§421. Exempt products
A. The provisions of this Chapter do not apply to the sale of:
(1)Patent, antiseptic, and toilet preparations.
(2)Flavoring extracts, syrups, and food products.
(3)Scientific, chemical, mechanical, and industrial products.
B. Nor does this Chapter apply to the manufacture or sale of alcohol which is for
industrial use or purposes, which is not manufactured or sold for beverage purposes, and
which is so denatured as to be unfit for human consumption.
C. No one shall knowingly sell any of the above exempt products for beverage
purposes or under circumstances from which he may reasonably deduce the intention of the
purchaser to use them for beverage purposes.
D. The provisions of this Chapter do apply to alcohol and alcoholic spirits, including
distilled or rectified
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§421. Exempt products
A. The provisions of this Chapter do not apply to the sale of:
(1) Patent, antiseptic, and toilet preparations.
(2) Flavoring extracts, syrups, and food products.
(3) Scientific, chemical, mechanical, and industrial products.
B. Nor does this Chapter apply to the manufacture or sale of alcohol which is for
industrial use or purposes, which is not manufactured or sold for beverage purposes, and
which is so denatured as to be unfit for human consumption.
C. No one shall knowingly sell any of the above exempt products for beverage
purposes or under circumstances from which he may reasonably deduce the intention of the
purchaser to use them for beverage purposes.
D. The provisions of this Chapter do apply to alcohol and alcoholic spirits, including
distilled or rectified alcoholic spirits, which are used or may be used in the preparation of any
proprietary, medicinal, or pharmaceutical preparation. Therefore, such alcohol and alcoholic
spirits are subject to the tax levied in this Chapter. Any person who uses such alcohol or
alcoholic spirits in the preparation of proprietary, medicinal, or pharmaceutical preparations
and who has paid the tax on them, may obtain a refund of the amount of tax paid upon
furnishing proof satisfactory to the secretary that they were so used. Refunds shall be made
under rules and regulations promulgated by the secretary.
E. No tax levied in this Chapter applies to or is imposed upon any priest, minister,
rabbi, or other clergyman possessing or using wines for religious or sacramental purposes in
the regular course of his religious duties. No regulatory provision contained in this Chapter
affects or in any way applies to such wines. Any tax collected on such wines shall be
refunded by the secretary to those persons.
F.(1)(a) No tax imposed pursuant to the provisions of this Chapter shall apply to the
furnishing of an alcoholic beverage at no charge as a sample in a business-to-business
exchange at, or in conjunction with, a conference, convention, exposition, trade show,
professional or trade association event, business or professional meeting, corporate event,
or exhibition of any kind held in this state.
(b)(i) For purposes of this Subsection, "business-to-business exchange" means the
distribution by a business of free samples in a limited quantity with nominal value to another
business as part of a genuine effort to sell or market the product being sampled to that
business.
(ii) For purposes of this Subparagraph, "nominal value" means a value which is so
small or slight that it is not considered real or substantial in comparison with what might
reasonably be expected.
(2) The exemption provided for in this Subsection shall terminate on August 1, 2033,
and shall have no effect on and after that date.