Texas sent out notices to all permitted out-of-state wine direct shippers that as of January 1, 2014, the Texas Alcoholic Beverage Commission (TABC) is updating the filing periods for the C-240, Shippers Excise Tax Return. The notice states that permittees shipping less than 4,000 gallons annually to consumers in Texas may begin filing this return on an annual calendar basis, beginning with the 2014 year. Permittees shipping more than 4,000 gallons of wine annually must continue to file this return on a quarterly basis, however the return will reset as a standard quarterly filing, as opposed to the unusual offset quarterly schedule. In other words:
* Qualified annual filers will file their first annual return due January 15, 2015
* Quarterly filers will file their first calendar quarter return due April 15, 2014
For the first filing period on this new schedule, rather than file a monthly return for December 2013, TABC instructs all permittees to include December 2013 in their first filing period of the new filing structure. ShipCompliant users need not worry calculating this extra month into their new filing periods; this month will already be included in the new filing periods by the time these filing periods need to be submitted to the state. Permittees that are ShipCompliant users and allowed to switch to annual filing should keep an eye out for an alert notifying you when the annual frequency is available for selection in your ShipCompliant account. Please note that you should only switch to the annual frequency if the state has indicated they qualify, and those that are qualified must file annually.
Wineries may now apply for an Arkansas “Wine Shipping Permit”, making the state available to onsite direct wine shipments only for the first time. The application for the $25 license may only be obtained by calling the Arkansas Alcoholic Beverage Control Division (the ABC’s number is 501-682-1105) and requesting an application be sent to the winery applicant. Once the application for the ABC has been submitted, the applicant can begin the process of obtaining sales tax and vinous liquor excise tax licenses. The entire process could take up to three to four weeks to complete. Upon receipt of approved licenses, the winery may then begin to legally ship direct-to-consumer wine orders to Arkansas residents.
Requirements of the Licensee
- Licensed Wine Shippers may ship up to one case to an Arkansas resident per calendar quarter.
- Licensees must regularly remit excise taxes, vinous liquor excise tax (3%) and state sales tax (6.5%). Please note, if you register online to pay taxes, you will be required to file and pay online (strongly recommended). Similarly, if you register via paper application to pay taxes, you will be required to file and pay using paper forms.
- Arkansas is the only state that requires wineries to obtain a license to ship onsite-only orders (placed in person at the winery) unlike the other onsite-only states, open via Federal Onsite (Delaware, Oklahoma, Rhode Island and South Dakota). Internet, club and phone orders are not allowed.
- As noted in our previous blog post, a special shipping label must be on every shipment; however, the alcohol-specific shipping labels provided by UPS and FedEx will satisfy this requirement.
- Wineries may only ship to residential addresses (no shipping to businesses or commercial locations), a requirement unique to the state of Arkansas.
– Sample Arkansas Wine Shipping Permit and Instructions (call the state’s ABC to obtain your individual application – 501-682-1105)
– Online Registration for Sales and Vinous Liquor Excise Taxes (click on “New Business Registration”; online registration is recommended)
– Further instruction on how to register for a Sales Tax Permit
– Act 483, To Permit the Direct Shipment of Vinous Liquor from a Winery to Arkansas Residents
ShipCompliant is excited to announce the release of our 2014 cookbook. Click below to request your copy!
Product renewals for 2014 in South Dakota can now be done online. South Dakota now joins Arkansas as one of the most recent states to institute on-line product registrations, continuing the trend toward digital product registration, away from the realm of pulp and fiber and into the digital space.
Suppliers of wine, spirits and beer to South Dakota can complete their product registration renewals for 2014 via South Dakota’s new on-line product registration portal. Paper-based product registration is still an option – forms, fees and instructions for paper registration are available on South Dakota’s Special Tax Division website.
HOW SOUTH DAKOTA’S ON-LINE PRODUCT REGISTRATION WORKS
To utilize the new South Dakota on-line product registration portal, suppliers will need their 4-digit “BR License Number” (provided in a recent communication from the state) as well as an email address. Upon logging in, suppliers will see a list of all currently registered products associated with their BR License Number. Suppliers need merely click the box next to the product they would like to renew for distribution in 2014. Should suppliers find that they would like to edit any details of their products (i.e. to add a COLA # or edit the label description), it is possible to easily edit details of any product. All renewals are preliminarily approved upon submission. State fees for on-line registration of wine products is $30 for an initial label of a brand and $22.50 for subsequent labels under the same brand. The fee for on-line registration of beer is $30 per label, and for spirits $55 per label. Payment may be made by credit card or check.
South Dakota’s new on-line product registration will allow suppliers to more quickly register new products, renew, and edit products currently licensed and in distribution in the state.
Anyone with any questions, please leave a comment here, or contact Tonna Finch at the SD Department of Revenue by email, or by phone at 605-773-5397.
Wine direct shippers doing business in Connecticut will be required to report and pay sales tax due for all filing frequencies beginning on or after January 1, 2014. This mandate affects direct wine shippers because sales tax remittance is a requirement of their direct shipping license in Connecticut. Currently most shippers file both their sales tax and excise tax returns for Connecticut via paper. After January 1, 2014, however, only excise tax should be remitted via paper mailings. Specific details on this eFile mandate may be found in Informational Publication 2013(15), but below are a few notable details to get filers prepared for this change.
New e-filing sales tax filers have two options to file sales tax returns: via telephone at 860-289-4829, or via the TSC Online website. Taxpayers need their “Connecticut Tax Registration Number” and PIN or information from a previously filed return to log on to the TSC website. Both of these options allow for sales tax to be paid along with filing the return. Sales tax filers may remit payment via ACH debit (recommended), ACH credit (pre-registration required) or by a credit card (convenience fee assessed). For specific details on each of these payment options please refer to the publication noted above.
Any sales tax filer that would like to begin filing sales tax online now is allowed to do so; simply choose one of the above options to file and pay sales tax for the last tax return of 2013.
Monthly filings in 40+ states can be quite a burden, especially for suppliers who don’t have significant sales every month in every state. Idaho has recognized over the years that wine direct shippers generally do not have significant sales every month and is reaching out to licensed wine direct shippers letting them know they may be eligible to file the “Idaho Form 1752 Wine Wholesalers, Wineries and Wine Direct Shippers Tax Return” and/or the “Idaho Form 850 Sales and Use Tax Return” on a less frequent basis. This eligibility is dependent on requirements outlined in the Idaho Administrative Rules:
- Monthly tax filers liable for the Idaho wine or sales taxes who owe $600 or less per quarter and have a satisfactory record of timely filing/payment of their taxes may request to file quarterly or semi-annually.
- Monthly tax filers liable for the Idaho wine or sales taxes who have seasonal activities and have a satisfactory record of timely filing/payment of their taxes may request to file annually.
Any licensed wine direct shipper that files either or both of these returns on a monthly basis and falls under the criteria noted above may submit a request for a less frequent filing preference by sending an email to email@example.com or writing a letter to:
- Meaghan McCandlish
- Unit: RO/PAS
- Idaho State Tax Commission
- PO Box 76
- Boise, Idaho 83707-0076
You must receive confirmation of approval by the Idaho State Tax Commission before you may begin filing at a less frequent reporting frequency. Also, if you are approved to switch from monthly to quarterly in the next two months, the soonest you may begin filing quarterly would be for the quarter beginning January 2014 and you would still need to file a monthly reports for the last months of 2013.
Please note, wine suppliers that only sell to Idaho distributors and do not partake in any direct-to-consumer sales with Idaho do not need to submit Form 1752 to the State Tax Commission.