Ship or Distribute to Indiana? Here’s How to Meet Their New Requirements

Starting with the October filing period, Indiana requires all alcohol beverage companies working in Indiana to electronically remit monthly excise tax returns and shipment reports. This method for electronic filing and payment is unique to Indiana and does not exist in any other state report.

ShipCompliant will be holding several webinars over the coming weeks to help you navigate these new requirements.

Click here to attend a webinar or sign up for a consultation.

The new Indiana report will be filed automatically for ShipCompliant AutoFile users. All other filers can use the summarized actions below to meet the new Indiana requirements.

GenericFeatureBubble_compliance

Step 1: Register with Indiana’s Excise Tax and Bulk Filing Departments

  • Send an email request to Excisetax@dor.in.gov with your FID/FEIN, to obtain your new Alcohol Beverage TID#
  • To register with Indiana’s Bulk Filing Department, send an email request to bulkfiler@dor.in.gov for a certificate of registration.

Step 2: Download and install the following software needed to E-File

Step 3: Generate two test .xml files and send to Indiana via the above noted software programs

Step 4: Set-up electronic payments

  • Electronic Payment set-up is required for those liable for paying taxes, such as wine direct shippers
  • Register for electronic payment at www.in.gov/dor/3976.htm
    Submit a test payment of $0.01 to PNC Bank

If you want the full set of instructions on Indiana electronic filing start by visiting the Indiana Department of Revenue FAQ page, or contact the department via the information provided on the FAQ page for more info.

And if this all too much for you to complete by the November due date (during one of the busiest times in the year), have no fear. If you are unable to successfully submit your report through this new bulk-filing process in November, Indiana will accept a paper version of the report for this month only.

Want to avoid the hassle of reporting to Indiana altogether? Sign up for ShipCompliant AutoFile and let us worry about completing the above steps for you. Learn more about AutoFile today!

Direct Shipping To Massachusetts–Finally!

massachusetts blog logo3Eight years after Massachusetts passed an unworkable and overly-restrictive direct shipping bill, and four years since the same law was ruled unconstitutional by a federal court, Bay State legislators finally passed a workable direct wine shipping law that will allow out-of-state and in-state wineries to ship wine directly to state residents. The new law was included in the 2014 budget bill (see page 257), and was signed by Governor Deval Patrick this morning. Set to go into effect on January 1, 2015, the new wine shipping law will make both wineries and Massachusetts wine lovers overjoyed.

Massachusetts is ranked among the most important states that still had not passed winery direct shipping law. Massachusetts is particularly important given the size of its population and its residents’ love of wine. Only four states have higher per capita consumption rates for wine than Massachusetts.

The new direct shipping law, passed as part of the 2015 fiscal year budget, provides the following conditions for shippers:

  • Only bonded wineries may apply for a direct shipping permit
  • Direct Shipping License Fee: $300/winery (separate permits required for each “affiliate, franchise or subsidiary”)
  • Direct Shipping License Annual Renewal Fee: $150
  • Shipments limited to twelve 9-liter cases per purchaser in a calendar year
  • Reports to the state must be remitted annually
  • Excise Taxes must be remitted on each sale

 

Over the next six months, the Massachusetts Alcohol Beverage Control Commission will be responsible for creating and making available license applications for direct shippers. We will report here on those developments as well as any others that impact direct shippers.

Arkansas Confirms Direct Shippers Only Responsible for Statewide Taxes

As wineries were applying for and beginning to use the new DTC shipping licenses for on-site sales to Arkansas consumers, we learned that some of the staff in the Arkansas Department of Finance and Administration were telling holders of direct wine shipper licenses that they were responsible for collecting certain local sales and use taxes. Wine Institute’s local Arkansas counsel has received a legal opinion from the Assistant Commissioner of Revenue, Policy and Legal of the Department of Finance and Administration stating that holders of a wine shipping permit are not required to collect any local taxes. Direct shippers are responsible for collecting and remitting only the statewide sales and excise taxes.

Wineries can register and file reports online through the Arkansas Taxpayer Access Point on the Department’s website at www.arkansas.gov/dfa or manually prepare and mail in the required forms. The state gross receipts (sales) tax rate is 6.5%, in addition to a state liquor excise tax that is 3% of the sales price. Direct shippers are also responsible for paying the $0.75 per gallon wine excise tax and a $.05 wine case excise tax. If the volume of wine being reported is less than one case of wine, round up. Sales and excise taxes must be reported on a monthly basis even if no activity occurred.

Annie Bones, State Relations – Wine Institute

Introducing AutoFile – Fully Automated Filing & Payments

To our valued customers:
The US beverage alcohol industry has it tough. It is one of the most regulated industries in the United States, as well as one of the most fragmented. Our industry is full of thousands of small businesses and startups; Entrepreneurs following their passion and seeking to achieve their dream of building a business as a winery, brewery, distillery or importer.

Easy to use dashboardToday, I’m proud to announce a major milestone in our effort to eliminate the complexity and cost of compliance for beverage alcohol companies: AutoFile – The first fully automated filing and payment solution for regulatory reporting.

No longer will you have to print paper, cut checks, or log into online filing systems. All of your state sales tax, excise tax, direct shipping and wholesale gallonage reports are automatically filed through AutoFile, complete with payment.

AutoFile has many benefits over reporting by hand, or outsourcing:
Simple funding: State payments are made out of an account of your choosing. No painful escrow accounts to manage, or reconciliation to deal with. It’s all under your own accounts!
Total control: Anytime, anywhere, view your compliance activity, place filings on hold, review past activity. Just like online banking you can view everything submitted on your behalf, in real time.
Future proof: If a state regulatory system changes its forms, procedures or methods, rest easy, it’s our problem now, not yours.
Guaranteed: All regulatory filings will be sent on time and accurately, guaranteed.

I encourage you to try it today, using our special free trial offer:

Your first month of reporting is on us, plus we’ll waive your setup fees.
Customers: Click here to start your free trial!
Non-customers: Choose an edition of ShipCompliant right for you.

We are grateful to our many clients that assisted in creating a solution that will help our industry grow further and faster.

-ShipCompliant Team









Arkansas DTC wine shipments can now arrive via FedEx

Effective May 1, 2014, FedEx will begin accepting on-site direct-to-consumer wine shipment orders to Arkansas residents. Both FedEx Express and FedEx Ground services will be available for wineries licensed to ship wine directly to Arkansas consumers. As we outlined in our blog post back in February, in order to be compliant, wineries must:

  • Apply for a $25 wine shipping permit (call the AR ABC for a permit application – 501-682-1105)
  • Ship on-site shipments only
  • Send orders only to private residences
  • Pay sales and excise taxes
  • Limit shipment volumes to 1 case per resident per quarter, max

Wineries should also note the FedEx label placed on any shipments satisfies the requirement of having a special shipping label on any on-site orders sent to Arkansas residents. FedEx’s shipping map will be updated on May 1.

No Need to Update Your ShipCompliant Passwords Because of the Heartbleed Bug


By now, you have probably heard about an encryption flaw called the Heartbleed bug. This bug affected web applications using a particular version of OpenSSL, a protocol designed to provide security for information transmitted over the internet. A widely-used version of OpenSSL was vulnerable to an issue in which sensitive information could potentially be exposed to a malicious hacker.

img src heartbleed.com

ShipCompliant services were not exposed to this vulnerability because we do not use OpenSSL.

ShipCompliant takes security, reliability and durability of your data very seriously. We follow a multi-tiered proactive approach to ensure we use the most powerful security tools and controls available so that all your sensitive information is protected. For more information on our security and privacy policies, please see our Privacy Overview page.

If you have any questions or concerns surrounding this issue, please contact us directly by emailing ShipCompliant Client Services, or by calling (303) 996-2356.