Posts from the Permit Instructions Category
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
Ohio Direct Shipping Permits Available for Wineries Producing Under 150,000 Gallons Annually
October 3rd, 2007
As of October 1, 2007 only wineries producing up to 150,000 gallons annually with an approved S Permit issued by the Ohio Department of Commerce Division of Liquor Control and registered with the Ohio Department of Taxation may ship to Ohio consumers. Wineries producing 150,000 gallons or more annually are prohibited from shipping both on-site and off-site sales to Ohio consumers as of October 1, 2007. The application fee for the S Permit is $25.00 annually. Under the new law an Ohio family household may receive an aggregate total of 24 cases of wine annually.
Wineries applying for the S permit must pay a $25.00 fee and have the application notarized. The permit must be renewed by each year by October 1st. It is expected to take 3-4 weeks for the applications to be processed. Next are some tips to help you complete the permit application. Type of Applicant is determined by whether or not the winery has a relationship with an Ohio distributor. If the winery applying for a permit has a distributor in Ohio “out-of-state supplier” should be selected as type of applicant. Wineries that do not have a relationship with a distributor should select “unregistered in Ohio out of state wine manufacturer.” The first question on the application references a tax credit under 27 D.F.R. 24.278. This refers to a section of the “small producer’s tax credit” that all wineries producing less than 150,000 gallons annually are entitled to under federal law.
The Division of Liquor Control will notify the Department of Taxation, Excise Tax Division that you have applied for the S permit. Excise tax forms and instructions should arrive via U.S. Mail approximately 30 days after you have submitted your S permit application. Excise taxes are scheduled to be paid quarterly. Direct Shippers must register with the Ohio Department of Taxation, Sales & Use Tax Division. Registering your business by telephone is recommended. Call 1-888-405-4089 and press #1 after the message. There is also the option of registering with the Department of Taxation by submitting Form UT-1000. State and county sales tax must be paid. The state sales tax is 5.5% and the county tax ranges from.25%-1.5%.
S Permit holders are required to report annually to the Division of Liquor Control. The annual report must include a copy of each wine shipment invoice and a record of the name, address and quantity of wine purchased by each consumer. The reporting form is not yet available. It is likely that the annual reporting due date will coincide with the S permit renewal date of October 1. For more information visit the Wine Institute website.
Link to Form UT-1000
Link to S Permit Application
Small producers tax credit
Virginia Out-of-State Winery Shipper’s Application Checklist
September 6th, 2007
The Shipper’s application is titled “Retail License Application Parts I and II” (rev. 06/2007).
Please follow the steps below to ensure your application can be processed and approved in a timely manner. Applicants must have already completed the VA Sales Tax Application and received a VA sales tax number.
RETAIL LICENSE APPLICATION - PART I
- Specify type of license applied for as “Wine Shipper Out-of-State” (question 8 )
- Select “Shipper” as Type of Business (question 15)
RETAIL LICENSE APPLICATION - PART II
- Specify type of license applied for as “Wine Shipper “Out-of-State” (question 2)
- Questions 4-5 and 7-9 are not applicable
- Question 6 requires a “general statement” only
- Only 2 parts of question 10 apply. Attach a copy of the FEIN certificate and a copy of your VA sales tax certificate.
- Question 18 is not applicable
- Posting and Publishing and ABC Notice Sections are not applicable (pages 9-11)
Attach the following documents to your application:
- Charter for your corporation or LLC
- Articles of Incorporation for your corporation, or Articles of Organization for your LLC
- Alcoholic beverage license from your state, if applicable
- Copy of Federal alcohol basic permit
- The completed personal data sheet, as found in the application, for each officer, director, or shareholder owning 10% or more of the stock. Although a criminal history is not required, the completed sheets for all of the above persons are necessary to complete the process
- Brand names of product for shipment
- If shipping products from other than your winery, letter giving approval for shipment from brand owner
- If your product is already sold in Virginia, letter to Virginia wholesaler(s) currently distributing your product informing them of your application for a license
- Federal COLA (Certificate of Label Approval) for each brand you intend to ship, if not already a brand being sold in Virginia
- The license tax per year is $65.00, which is in addition to the application fee of $65.00.
More Information about the West Virginia direct shipping application process
July 16th, 2007
There have been questions from wineries about the application process in West Virginia. Hopefully, this post will help clarify the process.
All wineries must apply for a Direct Shipper’s Permit and pay the $150 annual registration fee to the West Virginia Alcohol Beverage Control Administration. In addition all wineries must register with the Department of Tax and Revenue and pay excise, state and municipal taxes. Excise taxes are due on or before the 15th of the following month. The due date for state and municipal sales tax varies according to a winery’s total sales. The state sales tax for WV is 6% and the municipal tax is 5%.
Wineries that are Corporations or Limited Liability Companies (LLCs) have additional requirements. Only LLCs and Corporations are required to obtain a Certificate of Authority from the WV Secretary of State.
Wineries that are LLCs are required to have a Certificate of Authority from the West Virginia Secretary of State before they can receive a Direct Shipper’s Permit. LLCs can obtain a Certificate of Authority by completing Form LLF-1 and paying the necessary fees. An LLC is required to pay a registration of $150 annually and a $25 Attorney in-fact fee annually. The total an LLC would pay annually is $175. The attorney in-fact fee is prorated based on the month the application will be received.
Wineries that are Corporations must also register with the Secretary of State. Corporations must complete Form CF-1 in order to obtain a Certificate of Authority and pay 3 separate fees. A for profit corporation would pay 1) License tax for full year beginning in July of $250, 2) Registration fee of $100 and 3) Attorney in-fact fee $30 The annual fees for a corporation would total $380. The license tax and attorney in-fact fees are prorated based on the month the application will be received.
More information about the application process and links to the forms can be found on the Wine Institute website.
North Dakota Updates Direct Shipping Forms
July 15th, 2007
North Dakota has updated its Direct Shipping License Application and Alcohol Liquor Tax Report. Wineries are now required to file the direct shipping license application and renewal form electronically. The license must be renewed annually by January 1. Wineries that are unable to file the license application electronically may request permission to file paper reports by contacting the Alcohol Tax Section in North Dakota at 701-328-2702. The Annual Liquor Tax Report (Schedule H) has also been revised. The Liquor Tax Report is in the form of an excel worksheet and may be submitted electronically or by traditional mail. The Liquor Tax Report is an annual report and due on or before January 15. The forms can be found on the North Dakota page of the Wine Institute website at under relevant documents.
ND Tax Newsletter on Direct Shipping
Liquor Tax Report Instructions
West Virginia permit process details
June 15th, 2007
West Virginia passed legislation to change from a reciprocal state to a permit state. All wineries will have to obtain a direct shipping permit and pay taxes. Corporations will also have to register with the West Virginia Secretary of State.
The West Virginia Direct Shipper Application, instructions and tax forms are now available on the Wine Institute website. Effective July 1, 2007 wineries are required to have a Direct Shipper’s License to ship wine to a resident of West Virginia. Wineries must complete the Direct Wine Shipper Application and pay a license fee of $150 to ship wines with an alcohol content of 14% or less. The license fee is $250 to ship wines with an alcohol content of more than 14%. The Direct Shipper’s Application requires applicants to request a Letter of Good Standing from their state of domicile and provide a list of brands that are to be shipped to WV. A licensed winery may ship no more than 2 cases of wine per month to a consumer. Shipments to dry areas are prohibited.
All wineries must register with the Department of Tax and Revenue and obtain a Tax ID number by completing form WV/ BUS-APP. Wineries, since they are involved in the business of agriculture, are exempt from the $30 registration fee. Applicants should allow 4-5 weeks for their applications to be processed; applications may be faxed to 304-558-8754 to expedite the process. Wineries are required to submit monthly reports and pay sales, municipal and excise tax. The sales tax rate is 6% and the municipal tax rate is 5%.
Corporations are required to register with the Secretary of State and obtain a Certificate of Authority. The Secretary of State requires corporations to pay the following annual fees:
1) License tax for full year beginning in July of $250
2) Registration fee of $100 and
3) Attorney in-fact fee $25. The licensee fee and attorney in-fact fee are prorated for parts of years on a calendar basis.
West Virginia will allow wineries who have applied for a Direct Shipper’s License to continue to ship to consumers while their application is being processed if the winery attaches copies of their Business Registration form and application for a Certificate of Authority (if required) to their Direct Shipper’s Application.
Kentucky posts permit instructions
February 19th, 2007
Kentucky recently posted instructions for obtaining a Kentucky out-of-state small farm winery license. There are ten steps (actually eight steps - they skipped steps 6 and 8!) that a winery that produces less than 50,000 gallons can follow to receive a license to ship directly to consumers.
STEP 1. KRS 243.360 requires you to first advertise your intentions to apply for this license once in the legal section of the Kentucky State Journal newspaper located at 1216 Wilkinson Blvd. Frankfort, Ky. 40601. (502) 227-4556. (Example is attached.) An officer of the newspaper must complete the affidavit of publication, which is also attached. The completed affidavit and clipping must be submitted along with your application.
STEP 2. Answer all questions and have the form notarized. Incomplete or deficient applications delay processing and your application may be returned.
STEP 3. Attach a certified check, cashier check, or money order payable to Kentucky State Treasurer:
Licenses issued between July 1st. and December 31st. pay $ 50
Licenses issued between Januarys 1st. to June 30th. Pay $ 100
WE MAY NOT ACCEPT CASH BY MAIL OR HAND DELIVERY!STEP 4. Non Ky. residents are responsible for providing a statewide police record check from their state(s) of residence for the past five (5) years. If you have not lived in Kentucky for five (5) years, you must obtain a statewide police record check from the state(s) of your residency in for the past (5) years. Web site addresses are attached that will link you to that states’ instructions for obtaining your own background check.
STEP 5. If you apply as a corporation, limited partnership, or limited liability company, attach a copy of your articles of incorporation, partnership papers, or organizational papers from the state of your incorporation.
STEP 7. Under KRS 164.772 Ky. State ABC may deny a license to defaulted student loan borrowers of a Kentucky Higher Education Loan. Therefore, complete the attached Self-Certification Compliance Form enclosed in this packet and return it with your State ABC application.
STEP 9. Attach a copy of your Federal basic permit and proof of annual production. TTB’s federal form 5120.17 may be submitted as proof of production.
STEP 10. Attach a copy of your license issued by the state where your small farm winery is licensed.
The twelve page document, which we converted to PDF form for those that do not have Microsoft Word, also includes instructions for obtaining your state criminal history information (step 4), an example of the public notice that you must post (step 1), an affidavit of publication (step 1), a self-certification of repayment of educational financial assistance form (step 7), the and the basic application for alcoholic beverage licenses. Once you make it through this arduous process, don’t forget about the 53 dry counties in Kentucky.
Tips for Completing the Hawaii Tax Applications
January 12th, 2007
As of January 1, 2007 Hawaii is officially operating under the permit law for direct wine shipments. This means that wineries can no longer ship under the reciprocity law and must have an approved direct shipper permit for each county. However, wineries must have a General Excise Tax License (similar to sales tax) and a liquor license from Hawaii’s Department of Taxation. I have outlined some steps that will hopefully simplify the application process and as always the forms are available on the Wine Institute website.
Wineries must complete the form BB-1 02, NOT BB-1 UC-1. The forms are almost identical except that UC-1 is for businesses that have employees in the state of Hawaii. Lynn confirmed that wineries must select General Excise when completing the application. She also thinks wineries should select Liquor on the same application. The General Excise Application fee is $20.00 and the Liquor Application fee is $2.50.
Wineries will be mailed the Combined Monthly Return of Liquor Tax and Report of Wine Gallons and Dollar Volume of Taxable Sales or Uses form (Form M-18) to complete each month and the General Excise Forms once their application for General Excise/Liquor is approved.
Question 6 on the application is the date business began in Hawaii. Wineries can put the date they are completing the application or the date they expect to be legally approved to ship. However, if a winery lists 1/10/06 on the application they will have to include January on their initial tax report. The excise tax reporting forms will be mailed to wineries in booklet form. Wineries can select to pay their excise taxes monthly, quarterly or semi-annually.
New COLA form available
October 9th, 2006
TTB published a new Certificate of Label Approval or Exemption (COLA) form in June of this year and is now requiring that all applicants use this new form. According to Customer Service Staff at the TTB Labeling and Formulation Division in Washington, D.C, they will reject all applications submitted on the old form that were received after October 1. If you have submitted applications this or last week on the old form, you should go ahead and resubmit them on the correct form. TTB staff admitted that they will not catch and reject all those submitted on the old form because the forms are nearly identical so if you have time to wait it out you may still get approval.
The new form can be downloaded at http://ttb.gov/forms/f510031.pdf
Clarification on the South Carolina application process
October 5th, 2006
There has been some confusion about the application process for wineries shipping direct-to-consumers in South Carolina. The correct forms to complete are listed below and can also be found at http://wi.shipcompliant.com/StateDetail.aspx?StateID=39.
Wineries must complete the following steps to legally ship wine directly to consumers in South Carolina:
1. Complete the Out-of-State Wine Shipper’s License (Form ABL-571). The application cost $600 and is good for two years. The license expires 8/31 during the even years (2008..2010).
2. Complete the Department of Revenue Business Tax Application (Form SCTC-111). Wineries register to pay sales tax and complete section 3 of the form. There is a one time $50 fee to register.
3. Do NOT complete the Application for Producer of Beer and Wine Certificate of Registration and pay $400.
4. File the Excise Tax Return for Wines Shipped Direct to Residents (Form L-2166) and the Sales Tax Return (Form ST-3) by January 20th of each year.
Washington direct shipping requirements
June 30th, 2006
Permit Required: If a WA state winery has a Domestic Winery permit, nothing additional is required. If an out-of-state winery holds a Wine Certificate of Approval, only a no-fee endorsement is required. If an out-of-state winery does not hold a COA, a Wine Shipper Permit (for shipping to consumers only). Fee: $100 license fee + $15 application fee + $5 trade name fee.
Permit Application for wineries who have never shipped before:
* Master Application is to obtain the license. Fill in “Wine Shipper to Consumer” in the “other” field. http://www.dol.wa.gov/forms/700028fillable.pdf* Also, fill out the non-retail WSLCB Addendum: http://www.liq.wa.gov/publications/Liq14952AddendumNonretail.pdf
* and the WSLCB Addendum: http://www.liq.wa.gov/publications/Liq30050.pdf
* Registration with the WA Department of Revenue (DOR) occurs when you file the Master Appllication.
Application for wineries who have already obtained a Certificate of Approval:
* COA “no fee” endorsement: http://www.liq.wa.gov/publications/Liq75650-AddedEndorsement.pdf
* In addition to the WSLCB Addendum: http://www.liq.wa.gov/publications/Liq30050.pdf
Liter Tax Required: Due monthly, on the 20th of the following month. You must submit a report even if no sales have been made during the period.
* $0.2292/L for wine 14%ABV or under
* $0.4536/L for wine over 14%ABV
* Reporting /Liter tax form: http://www.liq.wa.gov/publications/Liq870.pdf
Sales or Use Tax Required: 6.5% Statewide + .015% litter tax + local taxes (ranging from .5% - 2.4%) = tax required. Freight is included as a taxable item. Reporting periods are monthly, quarterly or annually, as determined by the DOR. You must submit a report even if no sales have been made during the period.
* “Combined Excise Tax Return” (Sales or Use Tax): http://dor.wa.gov/Docs/forms/ExcsTx/ComExcsTxRtrn/CETR_06_Q2.pdf
* Addendum for multiple localities: http://dor.wa.gov/Docs/forms/ExcsTx/LocSalUseTx/LocalCityCntySlsUseTxSpplmnt_E-Blank.pdf
* Whether sales or use tax is payable, depends on “nexus.” http://dor.wa.gov/Docs/Pubs/SpecialNotices/2006/sn_06_DirectWineSales.pdf
* Tax Registration: Tax forms will be sent after license approval
Direct Shipping Label Required: containing language that asserts the package cannot be delivered to persons less than 21 years of age or a person who appears intoxicated.
Be sure to use a carrier who follows these guidelines: Must obtain the signature of the person who receives the wine upon delivery. Carrier cannot deliver to a person over 21 or an intoxicated person.
Volume Limit Requirements: None!
Late Update: To view reporting forms for other types of licensees in Washington, please click here.
Colorado permit process
June 28th, 2006
Colorado’s new legislation effecting wine shipments will become effective July 1, 2006. The new permit application is available on Wine Institute’s direct shipping website here. Wineries that have been shipping to Colorado under the reciprocity law DO NOT have to complete a new application. The annual renewal fee for applications will remain $50.00. Wineries must pay excise taxes on a monthly basis. The excise tax payment forms will be mailed to wineries that have completed the Winery Direct Shipper’s Permit Application. A physical visit to the winery is no longer required and there are no quantity limits.
Update on Idaho Direct Shipper’s Permit Application process
June 27th, 2006
Wineries can begin applying for Idaho direct shipping permits. Wineries must complete the Idaho Business Registration Form and the Idaho Beer and Wine Tax Application (BWA). Both forms should be submitted to the Idaho Tax Commission with a $1000 Bond, a Certified Copy of the Winery’s License (In California it is the Type 02 License) and a check for $50. Idaho does not have a current bond application available at this time, and is therefore accepting any generic bond application. Also a winery may submit a copy of their state winery license with a signed and notarized statement that it is an unaltered copy of the original, in lieu of a certified copy. The Idaho Tax Commission will forward all of the documents to the Alcoholic Beverage Control Division and the ABC will then issue the direct shipper’s permit. There are monthly reporting requirements.
Idaho permit instructions posted
June 5th, 2006
Idaho released instructions for getting permitted for direct shipment on Thursday. The document can be found in Word format on the Wine Institute site here. Three different permits are actually required before wineries can ship.
1) Wine tax permit from the Idaho State Tax Commission: To get the tax permit, first fill out the updated Beer and Wine Tax Permit Application (BWA), which is not yet available.
2) Seller’s permit from the Tax Commission: Register online for a seller’s permit at business.idaho.gov.
3) Direct shipper permit from the Idaho State Police�s Alcohol Beverage Control Bureau (ABC): The Tax Commission will forward your BWA to the ABC, who will automatically issue the direct shipper permit.
Also listed in this document are more details about the new rules.
- Excise, sales, and use taxes
- Annual reporting
- Volume limit of 24 cases per individual per year
- Package label requirements
- Common carrier must verify the age of the recipient
