Posts from the Permit Instructions Category
The Lone Reciprocal State
August 5th, 2010
New Mexico Stands Alone
In 2004, 13 states had wine shipping reciprocity provisions. Essentially, reciprocal states allowed any winery to ship into their state as long as that winery’s state allowed an equal reciprocal privilege. The Granholm decision of 2005 effectively declared reciprocity unconstitutional (pop quiz: would reciprocity provisions be beyond challenge if HR 5034 passed?). Since then, 12 of the 13 reciprocal states have adopted permit systems that allow wineries from any state to ship in as long as they stay in compliance with the direct shipping rules. Now that Iowa’s new permit system is live, New Mexico stands alone as the only remaining reciprocal state. Previous attempts to bring New Mexico into compliance with Granholm have to date been unsuccessful, so the reciprocity statutes remain in effect.
Don’t Forget to Remit Iowa Excise Taxes
Speaking of Iowa, effective July 1st wineries from any state (previously the reciprocity provision restricted the states from which wineries could ship into Iowa) can ship into Iowa so long as they are actively licensed as a "Wine Direct Shipper". Licensed shippers are required to remit excise tax monthly to the Iowa Department of Commerce – Alcoholic Beverages Division (ABD), and the first excise tax report is due this month. Each monthly report should be postmarked by the 10th of the month.
Although it’s possible that electronic filing may be available in the near future, for now the ABD is requiring that licensees complete the Report of Wine Shipments to Iowa Consumers spreadsheet, print it out, and mail it to:
Iowa Dept. of Commerce, Alcoholic Beverages Divisions
ATTN: Tax Division
1918 S. E. Hulsizer Road
Ankeny, IA 50021.
The form is fairly self-explanatory. For each shipment, licensees fill out the name and address of the recipient, the date of shipment, invoice number, total gallons of wine shipped, the shipping company (UPS, FedEx Express, or FedEx Ground), the amount of wine tax owed (multiply total gallons by $1.75), the permit number of the shipping company (UPS=AC0000003, FedEx Express=AC0000002, and FedEx Ground=AC0000001), and the tracking number of the package(s) that shipped. Reporting the tracking number and shipping company is not new to wineries as New York, Missouri, and Virginia all require one of the two data points.
Once you have completed filling out the spreadsheet, print out the completed form and make your payment out to “Iowa Alcoholic Beverages Division”. Stuff your envelope with the form and the check, and make sure it is postmarked by August 10th!
Set Your Sights on the Hawkeye State: Get Started by Applying for a Direct Shipping License in Iowa
June 14th, 2010
The direct shipping applications for Iowa are now available. As of July 1, 2010 Iowa will require wineries to obtain a direct shipping license to ship wine directly to consumers. Previously a reciprocal state, Iowa’s borders will soon be open to all wineries across the country who obtain a permit, regardless of reciprocity status with the state. Additionally, there are no restrictive requirements on the winery (such as a volume production cap), making Iowa’s market accessible to all permitted wineries.
The permit application can only be completed online at Iowa’s elicensing website. You may view Iowa’s user guide for instructions on how to begin the licensing process. The “Wine Direct Shippers License (DS)” requires a fee of $25 and a $5,000 bond. Though the direct shipper license application is completed online, copies of state and federal winery licenses, and bond should be mailed to the Iowa Department of Commerce, Alcoholic Beverages Division. Monthly reports and excise taxes are required although they have yet to release these forms. Iowa will not require wine direct shippers to collect sales tax. Start your application process today and be one of the first to become compliant in Iowa.
Direct Shipping Licensing Updates
March 4th, 2010
Michigan
Direct shipping permits for Michigan are renewable on May 1. The annual renewal cost for the Michigan Permit is $100; the same as the initial permit fee. For those wineries that do not have a direct shipping permit for MI now is good time to consider applying. Licenses are valid from May 1 – April 30 and the $100 fee is not prorated. The permit allows wineries to ship up to 1,500 9-liter cases to Michigan consumers. Brand registration is required. This can be completed through the MLCC’s online label registration program for no fee. Sales tax and excise tax must be paid and reports must be filed.
New Hampshire
New Hampshire has updated its direct shipping permit application. The updated application is now available on Wine Institute’s website along with the instructions. Please be sure to complete the application in its entirety and attach all required documents. Incomplete applications will be returned. Applicants will be happy to note that there is no permit fee. Approved shippers are allowed to ship up to 60 containers of not more than 1 liter each to each consumer during a calendar year. Monthly reports and tax payments are required.
Tennessee
The Tennessee Alcohol Beverage Commission has updated their ”Direct Shipper Application Requirements – ABC” document posted on the TN ABC and Wine Institute websites. The original version of the document did not include the “Wholesale Gallonage Letter” requirement. The Wholesale Gallonage letter is one of 2 documents issued by the TN Department of Revenue that wineries must submit with their application. The second document is the “Certificate of Registration for Sales and Use Tax.” While the application on the TN Department of Revenue website says a bond is required, a bond is not required for wineries. For the TN DOR wholesale gallonage and sales and use tax application form, go to: http://www.state.tn.us/revenue/forms/general/f13005_1.pdf. Licenses are valid 1 year from the date issued and the annual license fee is $150.00. There is also a 1 time non-refundable application fee of $300. Additional information about the application process is available on the Wine Institute website. Wineries may also contact Sharon Loveall at the TN Alcoholic Beverage Commission with any questions about winery direct shipping permits at 615.741.1602, ext. 141
By Annie Bones, State Relations – Wine Institute
Hidden Costs of Direct Shipping Licensing
March 3rd, 2010
Before jumping into a direct shipping program in a new state, wineries should consider their current prospect list, market potential, shipping difficulty and costs. When it comes to calculating start-up costs to enter a new state, there is often more than meets the eye. In addition to license fees, wineries may need to budget for a number of “hidden” fees including bonds, label registration fees and other application fees.
Bonds
Some states require wineries to obtain a bond in order to secure a direct shipping license. A bond is a written guaranty, purchased from a bonding company (usually an insurance firm or a surety company), to guarantee that all taxes due will be paid to the state. If there is a failure to pay, the bonding company will make good up to the amount of the bond.
Bonds for direct shippers range from $500-$1500 depending on the state, but premiums, or out-of-pocket costs, to wineries typically average around 10% of the total bond price, or $50-$180 out-of-pocket on an annual or biannual basis. Different bonding agents may quote different rates, so it pays to shop around.
Connecticut, Idaho, Illinois, Indiana, Kansas, Texas and Wisconsin all require that wineries secure a bond before submitting your license application. For wineries that ship 40,000 gallons or more annually, Oregon issues a bond document after the license application has been received but before the license is issued. Wineries that ship less than 40,000 gallons to Oregon annually can apply for a bond wavier.
Label Registration
Several states require brand or label registrations for direct shipping. Ohio, a state that 26% of direct shippers have in their program, requires wineries to register all the labels that will be shipped into the state for a one-time registration fee of $50 per label.
If that sounds pricey to you, consider Connecticut who charges $200 per label and requires labels to be re-registered every 3 years if they are still actively shipped into the state.
Georgia, Michigan, New York, North Carolina and Virginia do not charge a fee though label or brand registration is required in these states.
Application Fees
Some states may require business, Secretary of State or tax registration, or other one-time application fees. This varies from state to state and depends on how your business is structured. Wineries that start shipping to Arizona, Connecticut, Hawaii, Kansas, Maine, Michigan, North Carolina, Ohio, Tennessee, Virginia or Wisconsin may encounter one or more of these fees.
License, bond, label registration and application fees all factor into the true break-even costs of shipping to a new state. The key to ensuring a profitable direct shipping program is to research thoroughly in order to avoid getting caught off-guard with unexpected costs.
Maine Direct Shipping Permit Applications Available
October 12th, 2009
The direct shipping applications for Maine are now available on the Wine Institute website. The direct shipping permit allows wineries to ship up to 12 nine liter cases of wine to a recipient’s address each year. The Department of Public Safety, Liquor Licensing and Inspection Division has confirmed that there are no prohibited shipping areas at this time. The annual permit fee is $200 plus an additional $100 filing fee. Applicants will have to register with Maine Revenue Services to pay sales and use taxes before submitting their permit application. Maine Revenue Services will send applicants a Retailer’s Certificate to confirm that their sales tax account has been established. There is no fee to register with Revenue Services and the tax registration forms can be sent in via U.S. mail or electronically. The processing time for electronically filed applications is significantly shorter. Only sections 1 and 5 of the tax registration form must be completed.
Once wineries have received their Retailer’s Certificate they can submit their completed direct shipper application to the Liquor Licensing and Inspections Unit, along with a copy of their federal basic permit and application fee. The direct shipper application must also be notarized. Once wineries receive their direct shipping permit they will be responsible for paying excise tax to the Department of Public Safety and sales tax to Revenue Services. In addition, a direct shipping report must be filed twice a year. Reporting forms will be posted on the Wine Institute website once they become available. Should you have any questions please contact Annie Bones in Wine Institute’s State Relations Department at abones@wineinstitute.org.
Annie Bones, State Relations – Wine Institute
Tennessee Direct Shipper Applications and Instructions Available
August 24th, 2009
Wineries are now able to apply to the Tennessee Alcoholic Beverage Commission for a Direct Shipper license. Direct Shipper licensees may ship no more than 1 case (9 liters) of wine to a Tennessee consumer during a calendar month and total shipments to each consumer may not exceed 3 cases (27 liters) of wine during a calendar year. Only Tennessee consumers located in a wet region are allowed to receive wine shipments, and common carriers will not deliver shipments to an address that is located in a jurisdiction that has not authorized the sale of alcoholic beverages. A complete list of jurisdictions that have approved sales of alcohol is available on the Wine Institute website.
The first step in the direct shipper application process is registering to pay taxes, by submitting an “Application for Registration” to the Department of Revenue. The “Application for Registration” form must be completed by hand (Do Not file online version of the application.) Direct Shippers should select “Wholesale Gallonage” and “Sales and Use Tax” in section 1 and describe their business activity as “direct shipping” in section 15. Direct Shipper’s are not required to post a bond.
Once the Department of Revenue has processed the application for registration the direct shipper applicant should receive two documents: a “Certificate of Registration” and a letter confirming the tax registration process has been completed. Do not submit the Direct Shipper License application to the Alcoholic Beverage Commission before receiving these documents. The confirmation letter issued by the Department of Revenue must be submitted with the Direct Shipper License application. Direct shipper license applicants must pay a one time non-refundable fee of $300.00 and an annual license fee of $150 to the Tennessee Alcoholic Beverage Commission before receiving their license. Payment totaling $450.00 should be included with the application packet. In addition, the following documents should be submitted with the direct shipper’s license: copies of contracts with common carriers shipping wine to Tennessee consumers (also known as “Alcohol Shipping Agreement”), a copy of the applicant’s organizational document, and a copy of the applicant’s federal basic permit.
The direct shipper’s license is valid for 1 year from the date of issue. Direct shipper’s must file reports, pay a state sales tax of 9.25% and pay excise tax. The Department of Revenue will send the appropriate reporting forms and instructions to licensees based on their filing status. The application forms and instructions are available on the Wine Institute website. Wineries should remember that shipping to consumers in Tennessee without a license is classified as a felony. Should you have any questions please contact Wine Institute’s State Relations Department at 415-356-7530 or abones@wineinstitute.org.
-Annie Bones, State Relations – Wine Institute
Tennessee Direct Shipping Applications Available – What You Need to Know
July 15th, 2009
Tennessee direct shipping license applications are now available. While Tennessee officially became a Limited state on July 1, wineries cannot legally ship to this state until their direct shipping license has been approved.
The application states that direct shippers may only ship to wet areas within the state; a condition that may make the state slightly less available than initially anticipated. This requirement is different than those of other states such as Florida, New Hampshire and New York, where clearly defined dry areas are prohibited from shipping. Major cities such as Memphis, Nashville, Knoxville, and Chattanooga are all considered wet areas that are open for shipping.
Tennessee direct shipping license applications are available by directly contacting the Tennessee Alcoholic Beverage Commission at (615) 741-1602. The license requirements and application can also be viewed online. Wineries that prefer a full concierge service for obtaining their license can order online through easywinelicensing.com.
To obtain a direct shipping license, wineries must first register with the Tennessee Department of Revenue. Once this step is complete, wineries pursuing a direct shipping license must submit the following to the State of Tennessee ABC:
- License application (available from state)
- $450 fee ($300 one-time application fee + $150 licensee fee, payable upon approval of application)
- Copy of Certificate of Registration for Sales & Use Tax
- Copies of all contracts with common carriers that will ship wine to Tennessee residents
- Copy of the applicant’s organizational document (e.g. corporate charter or articles of organization)
- A copy of applicant’s Federal Basic Permit
Tennessee direct shipping licenses expire December 31 of every year, and renewal applications must be postmarked by January 9 of the following year to avoid a $250 citation.
Licensed wineries can ship a maximum of one case per month and up to three cases annually to Tennessee residents. Retailers are still prohibited from direct shipping to Tennessee.
Add Two to the List of Open States, and Many More Updates, Effective Today
July 1st, 2009
Tennessee, Kansas Open For Direct Shipping
Today, both Kansas and Tennessee open for direct shipping – the first two states to open in almost three years. These are the first states to change from Prohibited to Limited since Vermont in late 2006.
As of today, Kansas residents have direct access to up to twelve cases of wine per address from licensed wineries per year. Kansas special order direct shipping license applications are available online. After registering with the Secretary of State for $36, wineries must submit proof of business tax registration, a $50 license fee, a $50 application fee with their license application as well as post a $750 bond.
Nearly one month ago on June 5, Tennessee Governor Phil Bredesen signed Senate Bill 166 into law to open Tennessee for direct shipping on July 1. Tennessee ranks in the top 25 wine consuming states.
Both state licenses are available for order with full concierge service through easywinelicensing.com.
North Dakota Excise Tax Decreases
Beginning today, sparkling wine will be taxed at $0.50/gallon, down from $1.00/gallon.
Nevada State-Wide Sales Tax Increase
Effective July 1, Nevada has increased its Local School Support Tax from 2.25% to 2.6%; a 0.35% increase in state-wide sales tax. This new tax will be collected at a local level. Also, the 0.25% Collection Allowance, scheduled to increase back to 0.50%, remains in effect for sales and use taxes collected.
Local Tax Increases
The following local tax rates are effective today:
- In Arizona, the city of Kearny has increased its retail and use tax rates from 2.5% to 3.0%
- In California, voters in Los Angeles County approved a new 0.50% district tax increasing their tax rate to 9.75% (including the 8.25% state tax rate). Also, the City Council of Laguna Beach located in Orange County voted to repeal the 0.50% Temporary Transactions and Use Tax prior to its scheduled end date, lowering their tax rate to 8.75%
- In Georgia, the counties of Camden, McIntosh and Wayne will increase their local tax rates by 1%, making the total local option tax 3.0%
- In Washington, sales and use tax within all of Wahkiakum County will increase one-tenth of one percent. The new rate will be 7.6%
Ohio Electronic Filing
For Ohio Sales and Use tax semi-annual filers, the January – June return is the first return that is required to be filed online. There are two filing methods available to direct shippers to report Ohio sales taxes electronically:
- Express Data Entry – Upload a .CSV to the Ohio Business Gateway (OBG), and make any final adjustments on the OBG’s website
- eForms – Enter tax calculations step-by-step into Ohio’s web application
If you can’t decide which filing option is right for you, view a comparison of the different filing options (please note that TeleFile is not available for direct shippers). If you have any questions about the requirement, please visit Ohio’s Department of Taxation website, or call the Ohio DOT at 800-282-1784.
Details on Submitting the Kansas Special Order Shipping License Application
June 30th, 2009
As of June 25th, wineries may apply for a Special Order Shipping License that allows them to ship off-site sales to Kansas consumers (on-site sales do not require a Shipping License). The initial costs for the Special Order Shipping License include a $50 license fee and a $50 registration fee. The license will be valid for 1 year from the date issued. The cost to renew a license is the $50 license fee plus a $10 registration fee. Wineries with a license will be able to ship up to 12 cases of wine to any one consumer or address each calendar year. Direct Shippers are required to confirm the consumer is at least 21 years old by physically examining a government issued form of identification or by using an age verification service approved by the ABC. Lexis Nexis, Wine Institute’s preferred age verification provider, is an Approved Internet Based Age and Identification Service Provider for Kansas.
The Kansas Special Order Shipping License Application and Instructions (Form ABC-800 rev.6/29/09) are posted on the Wine Institute website. In addition to the License application wineries are required to obtain a bond for $750, submit a Kansas Business Tax Application, and file form ABC-160 entitled “Irrevocable Consent to Jurisdiction” with the Kansas Secretary of State’s office. There is a $35 fee to file form ABC-160 and a $1 fee for each additional file stamped copy of the form. Wineries registered as a supplier in Kansas and doing business through the 3-tier system should have already filed form ABC-160 and will not need to file the form a second time. Wineries who have already filed ABC-160 can obtain a copy of their Irrevocable Consent to Jurisdiction letter on the Kansas Department of Revenue website. A copy of the Irrevocable Consent to Jurisdiction should be attached to the application or faxed to the Department of Revenue upon receipt. Special Order Shipping Licenses will not be issued until Alcohol Beverage Control has a copy of the document. The Kansas Business Tax Application should be completed by hand and mailed in with the Special Order Shipping License Application.
Wineries located outside of Kansas applying for the Special Order Shipping License are not required to complete Section 3- “Business Ownership Information,” Section 5– “Background Qualifications” or Section 9 “Management Services Disclosure” of the application. In Section 6, Part 2 and Section 8, Part 1 it is not necessary for out-of-state applicants to attach additional documentation.
Should you have any questions about the Special Order Shipping License Application process or forms please contact Annie Bones with the State Relations Department of Wine Institute at 415-356-7530.
Application
http://www.ksrevenue.org/pdf/forms/abc800.pdf
Business Tax Registration
http://www.ksrevenue.org/pdf/forms/cr16.pdf
Escrow Bond Form
http://www.ksrevenue.org/pdf/forms/abc803.pdf
Surety Bond Form
http://www.ksrevenue.org/pdf/forms/abc804.pdf
ABC-160
http://www.ksrevenue.org/pdf/forms/abc160.pdf
-Annie Bones, State Relations – Wine Institute
Kansas permit applications available, Tennessee coming soon…
June 26th, 2009
Late yesterday the Kansas ABC posted their applications for direct shipping on their website. Wine producers across the country can now apply for permission to direct ship wine to Kansas consumers effective July 1, 2009.
Kansas SB 212 was signed into law by Governor Kathleen Sebelius on April 10. Wineries interested in avoiding the hassle of the application process can purchase the license at www.easywinelicensing.com.
Licensed wineries will be able to ship up to 12 cases of wine per year to Kansas residents. To obtain a Kansas direct shipping license, wineries must pay a $50 license fee, a $50 registration fee, and post a $750 bond.
Tennessee will also open for direct shipping on July 1, although the paperwork has not yet been finalized. Tennessee’s license is available for pre-order pending the state’s posting.
Release Thirty-One of “Notes on Wine Distribution”
June 23rd, 2009
R. Corbin Houchins’s latest “Notes on Wine Distribution” are now available. Release 31 includes updates on legislation, litigation and general discussions on available distribution channels for wine. In addition to country-wide topics such as “Direct Shipment by Retailers” and “A Limitation of Litigation”, distribution practices are also outlined on a state-by-state basis. Numerous states have had notable legislative activity this session, with Kansas, Maine, and Tennessee adopting major legislative changes regarding direct shipping. Read about these and other updates that affect the way wine is sold and shipped within the United States.
You can view these notes anytime by visiting the ShipCompliant Blog, located under “Compliance Resources”, or by visiting CorbinCounsel.com and clicking on the home page link, “Notes on Wine Distribution.”
An Unfortunate Direct Shipping License Clarification in Texas
December 4th, 2008
Wineries applying for a Texas Direct Wine Shipper’s Permit or renewing their existing permit must now pay a surcharge of $160 in addition to the $75 annual permit fee. Currently the Direct Shipper’s permit is renewed annually. However, beginning January 1, 2009 all Direct Shipper licenses will be valid for two years. Applicants will have to pay license fees and surcharges for 2 years totaling $470 when applying for a permit in 2009. The Texas Alcohol Beverage Commission added significant surcharges to a wide range of licenses affecting both in-state and out-of-state applicants.
Annie Bones, State Relations – Wine Institute
Mark Your Calendar Because Idaho Won’t: Direct Shipper Permit Renewal
October 31st, 2008
This is a reminder that Idaho Direct Shipping Permit holders must submit a renewal form before the expiration date of their current permit (Direct Shipping Permits expire a year after the date of issue). Idaho does not send out renewal notices, thus it is the responsibility of the permit holder to obtain and submit the renewal form. You can find the form on the main page of the Idaho Alcohol Beverage Control under the name “Idaho Direct Shipper Renewal Form.” A $25 renewal fee and, if you are an out-of-state direct shipper, a certified copy of your state winery license must be submitted with the form. Also, a contact person’s e-mail address is required to complete the renewal application.
There is good news regarding Idaho’s bond requirement for some direct shippers. Direct shippers may request to have their bond requirement removed after one year. However, in order to qualify, the direct shipper must have an impeccable record of compliance and submit a letter of request to the Idaho Tax Commission.
Wisconsin Permit Applications Available
September 11th, 2008
The Wine Direct Shipper permit application is now up on Wisconsin’s website. Wisconsin approved licensed direct shipping legislation back in March, which will allow wineries in every state to ship limited amounts of wine to Wisconsin residents, beginning October 1, 2008. Here’s some basic information on how to apply for the direct wine shipping permit:
Form BT-138, “Alcohol Beverages Tax Bond” (the bond amount should be equal to two times the estimated monthly tax due; minimum of $1000) and Form AB-123, “Distilled Spirits/Wine Permit Application” should be mailed to the WI DOR along with payment. Prospective direct wine shippers also must register to pay sales tax. The wine shipping permit application will not be processed until an Application for Business Tax Registration (aka “Seller’s Permit”) is completed. The fee for business tax registration is $20. If filing online (recommended – the application is processed much faster if done online), mail in the business tax registration fee with your $200 wine shipper permit fee and wine shipper permit application.
New Requirements for S Permit Applications and Renewals in Ohio
August 29th, 2008
For eligible wineries, SB 150 has created quite a bit of change to the existing direct shipping law. Since the dawn of Ohio’s direct shipping regulations, in order to be eligible for the “S Permit”, which allows wine manufacturers to ship wine directly to Ohio consumers, the wine manufacturer must produce less than a certain number of gallons per year. As was reported in June, SB 150 increased the maximum production requirement from 150,000 gallons to 250,000 gallons (the maximum production requirement described for S permit holders is also true for wine manufacturer’s that hold a “B-2a permit”, allowing for shipments of wine directly to retailers, a.k.a. self-distribution). SB 150 also lowered the excise tax rate for direct shippers and added a costly label registration requirement, which may further deter wine manufacturers from shipping into Ohio.
First the good news.
There are now only two types of excise taxes that must be paid by B2a and S permit holders, instead of three: taxes levied by a county for sports facilities (e.g. Cuyahoga County tax); and a $.02/gallon tax on wine and sparkling wine, levied by the state of Ohio to encourage Ohio grape industries. These taxes are not due until the end of the year; updated tax forms are not yet available.
Now, the not so good news.
Effective Monday, September 1st, label registration of all wine products sold in Ohio is required from all direct shippers. The registration fee is $50 per new label. Direct shippers should submit registrations for all products shipped into Ohio via the Application for Label Registration with a copy of the TTB COLA. If the direct shipper already sells products through an Ohio distributor, they only need to register additional products that have not already been registered. S permit holders should submit the applications for label registration form prior to the October 1, 2008 permit renewal deadline. B-2a permit holders should submit applications for label registration as soon as possible, as this requirement goes into effect September 1st, 2008.
As of September 1st, S permit holders must also register as “S-5″ wine suppliers. This is a new requirement, however if the S permit holder also ships to Ohio distributors, this registration will have already taken place. For those that have not already registered as a wine supplier in Ohio, the initial processing fee for this registration is $100. In addition to the processing fee, the Supplier Registration costs $300, however the $300 fee is waived for wineries that only hold an S permit and do not have a distributor relationship in Ohio. The Supplier Registration form requires notarization.
South Carolina: Timing is Everything
June 30th, 2008
Expensive permit fees deter many wineries from shipping to South Carolina, but with a little timing, shipping there can make more sense.
For those who already have a South Carolina Out-of-State Wine Shipper’s License, the license must be renewed at the end of August if you wish to continue shipping to the state. The license fee is a costly $600 every even year and is not pro-rated for applications after the start of the fee period. The next fee period begins August 31, 2008, after which the direct shipping license will be valid and no fees owed through August 2010. Therefore, for those wineries that would like to begin shipping to South Carolina should take note of the fee period timing because the license, if applied for now, would be $600 for two months.
Unfortunately, there are a few more costs associated with direct shipments to South Carolina. In order to apply for an Out-of-State Wine Shipper’s License, applicants must first complete the Business Tax Application form SCTC-111 ($50 fee) and the Certificate of Registration form ABL-500 ($400 biennial fee). The completed Certificate of Registration form must be attached to and sent in with the Out-of-State Wine Shipper’s License Application form ABL-571 ($600 biennial fee). Contact Joyce at the South Carolina Department of Revenue with any questions at 803-898-5864.
Georgia – Amended Wine Special Order Applications Available
June 22nd, 2008
The amended Georgia Special Order Shipping License application is now available on the Wine Institute and Georgia Department of Revenue websites. Wineries will be required to have an approved Wine Special Order Shipping License and comply with new direct-to-consumer shipping regulations beginning July 1, 2008. The new law increases the quantity limit to 12 cases per person per calendar year per winery and allows GA consumers to join wine clubs. The old rule allowing the shipping of on-site sales without a license and prohibiting wineries with distributor relationships in GA from receiving a wine shipping license for off-sale shipments is repealed as of July 1, 2008.
The amended application has a license fee of $50 and must be submitted with a completed sales tax registration application and brands registration form. Direct shippers will be required to pay state and local sales tax, pay excise tax and file reports. In addition, direct shippers must obtain a copy of the consumer’s government issued id or use an online age verification service at the time of purchase. Applicants will be mailed their wine special order shipping licenses along with reporting forms and instructions for paying taxes. Wineries currently holding special order licenses issued prior to July 1, 2008 do not have to complete the amended application and should expect to receive reporting forms and tax payment information in the mail. Should you have any questions please contact Annie Bones in the State Relations Department at 415-356-7530 or abones@wineinstitute.org.
Following is the list of required forms. Click here for a printable checklist.
- Notice: To Wineries with Valid Federal Basic Manufacturing Permits
- Form CRF–002 State Sales Tax Registration Application
- Form CRF–004 Additional Ownership/Relationship Application (If Applicable)
- Form ATT-6 State Alcohol License Application (“Winery Special Order Shipping”)
- Form ATT-104 Brands/Brand Labels Registration Application
- Form ATT–17 State Beverage Alcohol Personnel Statement
- Form RD-1061 Power of Attorney (If Applicable)
Annie Bones, State Relations – Wine Institute
Georgia Direct Shipper Application Update
June 13th, 2008
Georgia will require wineries to have an approved direct shipper’s permit, pay excise tax, state sales and local sales tax in order to ship direct to GA consumers beginning July 1, 2008. The Georgia Department of Revenue, Alcohol and Tobacco Division is developing a New Direct Shipper Application which will include information about how to comply with the new tax and reporting requirements. The new application is expected to be available by July 1, 2008 and the Department of Revenue anticipates it taking approximately 30 days for the applications to be processed. Beginning July 1, 2008 wineries will not be permitted to send on-site or off-site wine shipments to GA consumers until they have received an approved direct shipper’s permit.
The New Application will be posted on the Wine Institute website as soon as it becomes available. Permits issued to wineries without distributors in 2008 will continue to be valid after 7/1/08. Should you have any questions please contact Wine Institute’s State Relations Department at 415-356-7530.
Annie Bones, State Relations – Wine Institute
Checklist and detailed instructions for Illinois permit applicants
May 14th, 2008
Beginning June 1, 2008 wineries will be required to have an “Out-of-State Winery Shipper’s License,” file reports, obtain a bond and pay sales and excise tax in order to ship wine to consumers in Illinois. Wineries with a valid Shipper’s License issued by the Illinois Liquor Control Commission will be permitted to ship up to 12 cases a year to a consumer who is 21 years of age or older, an increase over the 2 case annual limit in the reciprocity law being replaced. Illinois Direct-to-Consumer Permit applications are now available on the Wine Institute website.
Application for State of Illinois Winery Shipper’s License – Direct-to-Consumer Application
California wineries should select option F, “OUT-OF-STATE WINERY SHIPPER’S LICENSE” as type of license being applied for.
The application process separates wineries into 3 classes based on the total number of gallons manufactured annually. The cost of the annual license for each class varies. Class 1 wineries have a $150 license fee and produce less than 250,000 gallons annually. Class 2 consists of wineries producing more than 250,000 gallons but less than 500,000 gallons annually. The license fee for Class 2 is $500.00. Class 3 wineries have a $1000.00 license fee and manufacture 500,000 gallons or more annually.
A copy of the applicant’s state manufacturer’s liquor license (Class 02 Winegrower’s license) must be submitted with the license application.
The license must be renewed annually.
Registration Statement (For Brand Registration)
Brands not already registered with the Commission must be registered prior to, or simultaneously with, the direct shipper application filing. The brand registration requirements are fulfilled by submitting the Registration Form and copies of all federal label approvals for products being shipped into Illinois.
- In the first column titled Name, Address, City etc., write “N/A” If sales are only made to consumers.
- In the second column titled Trade-Mark Brand, or Name of Item, list brands not already registered with the Illinois Liquor Control Commission.
- In the third column titled Geographical Territory, write “Illinois”.
- In the fourth column titled Time Period, write “Until further notice”.
Note: If brands are already registered, you do not need to complete this form.
Self -Distribution
Class 1 wineries who will not produce more than 25,000 gallons annually may apply for self-distribution privileges by completing the “Self-Distribution Exemption” form. Wineries qualifying for the self-distribution exemption may not sell more than 5,000 gallons to retail licensees in Illinois each year. Wineries producing more than 25,000 gallons annually, including all Class 2 and 3 wineries are not eligible to self-distribute in Illinois.
Bond
Applicants must obtain a bond for the amount of $1000 or 2x their estimated monthly tax liability, whichever is greater, up to a maximum of $100,000. (See RL-26-W, Step 2: “Figure your tax due” for alcohol content breakdown with corresponding excise tax rates to estimate monthly tax liability.) Form RL-1, Liquor Tax Statement of Liability must be submitted with the bond paperwork. In addition you will need to submit one of the following:
- Form REG-4-A “Financial Responsibility Bond”
- Form REG -4-D “Financial Institution Irrevocable Letter of Credit Bond”. or
- a cashiers check to cover the cost of a Certificate of Deposit that the Illinois Department of Revenue will purchase for you.
Applications to Register to Pay Sales and Excise Taxes
Illinois requires applicants to register their business with the Illinois Department of Revenue (IDOR). You do not need a separate application to register to pay the Liquor Tax. IDOR will automatically register you to pay this excise tax using the application you submitted to receive your wine shipper license. The license certificate you receive from the Illinois Liquor Control Commission will contain your liquor license number as well as an Illinois Business Tax Number (IBT). This IBT must be used to file and pay liquor tax. However, you will need to complete a separate application to register for the sales/use tax that you will need to file and pay.
IDOR will automatically send you a request for an application once you have been registered for the liquor tax or you can register online. You may register by visiting the IDOR website or by completing and mailing in Form REG-1. Applications submitted electronically will be processed significantly faster than applications submitted by mail. When completing Form REG-1, Step 3, question 11, write “Direct Wine Shipper”. When completing Step 3, question 13, applicants should select “sales to Illinois Consumers” and “Liquor at Retail” as type of business. *IMPORTANT: WAIT UNTIL AFTER YOU RECEIVE YOUR SHIPPER’S LICENSE BEFORE FILING THE REG-1 TO AVOID LICENSING COMPLICATIONS.*
Once the application is processed you will receive an Illinois Business Authorization Certificate of Registration. Your Sales/Use Tax Account Identifier Number will be listed on the certificate. Keep track of the number because it will be needed on sales/use tax payment forms.
Note: Do not confuse your identification numbers. You will receive a Liquor License number, an Illinois Business Tax number (IBT), and a Sales/Use Tax Account number. The Sales/Use Tax Account Number is sometimes also referred to as an IBT number. However; this number is different from the IBT number that is used to pay the liquor tax.
Winery Shippers are required to file and pay state sales tax and excise tax on all shipments to IL consumers. The state sales tax is 6.25%; payment schedules will depend on the estimated amount of total sales. Local sales tax is not required.
Excise taxes must be filed and paid every month, including months in which 0 shipments occurred. Once your Winery Shipper’s License has been issued, the IDOR will mail you tax form RL-26-W “Liquor Direct Wine Shipper Return.” Winery Shippers have the option of filling the form electronically on the IDOR Website or by mail. Winery Shippers who choose to file and pay electronically will receive a discount of 2% if their return and payment are filed and paid on time. This discount is not available to those that use the paper method.
Annie Bones, Wine Institute
Oregon Direct Shipper Permit Applications Available
November 15th, 2007
On January 1, 2008 the legislation replacing Oregon’s reciprocity law with a permit system for the sale and shipment of wine directly from wineries will become effective. The new law requires wineries have a Direct Shipper Permit, pay an annual license fee of $50 and maintain a bond of at least $1000. Wineries with approved Direct Shipper Permits may ship up to two nine liter cases per month directly to an Oregon resident who is at least 21 years of age, must pay excise taxes and file monthly reports with the Privilege Tax Department. Wineries will be mailed monthly report forms within in 30 days of being issued a permit. The permit application and instructions on how to apply for a bond are currently available on the Wine Institute website.
Wineries may also apply for an Oregon Self-Distribution Permit at this time. Beginning January 1, 2008 Self-Distribution permit holders may ship directly to retailers in OR. In order to obtain the permit applicants must have an Oregon Certificate of Approval, pay a $100 fee and maintain a bond of at least $1000. There are additional reporting and tax requirements. More information about the Self-Distribution application process can be found on the OR Liquor Commission’s website.
Wineries applying for a Direct Shipper Permit and Self-Distribution Permit should keep the application processes separate. For example, an applicant will need to obtain one bond for the Direct Shipper permit and a second bond for the Self-Distribution permit. Should you have any questions please contact Annie Bones in Wine Institute’s State Relations Department at abones@wineinstitute.org.
Annie Bones, Wine Institute
