A tax strip on whiskey is a small paper seal affixed over the bottle's cap or cork, primarily indicating that the necessary taxes have been paid and that the bottle has not been tampered with since bottling.
Purpose and Function
The primary functions of a tax strip are twofold:
- Proof of Tax Payment: It serves as an official indicator that the required federal or other specific taxes on the alcoholic beverage have been collected.
- Tamper Evidence: By sealing the bottle's closure, the strip provides a visible sign if the bottle has been opened or compromised, ensuring the integrity of the product for the consumer.
Understanding Tax Strip Colors
Historically, the color of the tax strip provided specific information about the whiskey's classification or origin. While not as universally prevalent in modern bottling due to evolving regulations and practices, these colors once conveyed important details:
- Red Strips: Typically indicated that federal excise tax had been paid on the whiskey.
- Blue Strips: Used for whiskey destined for export, signifying that it was exempt from domestic taxation.
- Green Strips: Denoted "bottled in bond" whiskey, a specific classification under U.S. law that requires the whiskey to meet strict production and aging standards under government supervision.
These strips were a critical part of regulatory oversight, ensuring compliance and consumer protection in the spirits industry.
