What Are the DtC Liquor Shipping Laws by State?

Lizzy Connolly
July 14, 2021

Last updated: November 2022

When it comes to direct-to-consumer (DtC) liquor shipping laws by state, distilleries and other spirits producers must adhere to shipping laws of the destination state. It is also important to remember that just because a state allows DtC beer shipping or DtC wine shipping, it does not necessarily mean that it allows DtC liquor shipping.

For example, Ohio allows DtC beer shipping but DtC liquor shipping is currently not legal. A distillery might see that DtC beer or DtC wine shipping is allowed into a particular state, but that is not a guarantee that the same state will allow for DtC-shipped liquor.

Distilleries and spirit producers must also stay current on all federal and state laws, as they can change over time. In April 2020, Kentucky passed a statute enabling the DtC shipping of spirits. Then in 2021, Kentucky passed a bill removing a previous provision prohibiting DtC alcohol shippers from using third-party fulfillment houses to help with their shipping logistics needs.

We have outlined the basics of DtC liquor shipping and key rules that shippers must adhere to in order to stay compliant.

Where can spirit producers ship?

Currently, eight states and the District of Columbia allow DtC liquor shipping.

  • Alaska
  • Arizona (only distilleries producing less than 20,000 gallons per year)
  • District of Columbia
  • Kentucky
  • Nebraska
  • New Hampshire
  • North Dakota
  • Rhode Island
  • Vermont (RTD cocktails only)

It’s also universally required that any packages being shipped have a label clearly identifying that the box contains alcohol and that a signature of a person aged 21 years or older is required for delivery.

How does DtC liquor shipping work?

Similar to DtC beer shipping and DtC wine shipping, distilleries and spirit producers must adhere to the state-specific requirements when it comes to shipping DtC. Some of these requirements might vary from state-to-state, but shippers should ensure that they are aware of the following rules:

  • Be licensed by the destination state
  • Use approved carriers who will check IDs and collect signatures
  • Verify age of purchaser and recipient
  • Label boxes with notice of alcohol contents
  • Abide by per person volume limits
  • Agree to remit all applicable sales and excise taxes to the destination state
  • File regular reports detailing all their shipments
  • Only ship brand/labels that are produced or owned by the shipper

Remember that while these rules and regulations are commonly applied, they are not always in effect in every state that permits DtC shipping of spirits. They can also be applied with varying levels of strictness. When you are looking to ship in a new state, consult with experts who can properly interpret how the rules apply to your individual circumstances. Specifically, your compliance team, legal counsel or another distillery could help you determine your next steps in DtC spirits shipping.

Take Action

Learn more about managing your DtC alcohol shipping compliance.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Lizzy Connolly

Share this post

North America ShipCompliant
September 26, 2023
How Can Women-Led Beverage Alcohol Companies Change the Industry?

The beverage alcohol industry might no longer be strictly viewed as a “boys’ club,” but there are a minority of women leading organizations in the space. However, the number of women-led wineries, breweries and distilleries is on the rise, which – as we’ll explain – is likely a very positive thing for the industry. Let’s […]

North America ShipCompliant
September 25, 2023
Potential Government Shutdown Will Affect Beverage Alcohol Industry

Unless Congress is able to pass an appropriations bill in the next few days, the U.S. government is set to shut down all nonessential services effective October 1, 2023. This will include (among many other agencies) the Alcohol and Tobacco Tax and Trade Bureau (TTB), which will impact the beverage alcohol industry. If the shutdown […]

EMEA VAT & Fiscal Reporting
September 25, 2023
VAT in the Digital Age – Union One Stop Shop (OSS) Expansion

Entering into force on 1 January 2025, the EU Commission’s VAT in the Digital Age (ViDA) proposals have been introduced in an effort to modernize VAT across the EU.  One pillar of ViDA is the “single VAT registration,” which would reduce compliance costs for businesses. The Commission proposes to achieve this by expanding the Union […]

North America Tax Information Reporting
September 25, 2023
Why Conduct a Pilot Season for Tax Information Reporting?

Another tax information reporting season is just around the corner and now is the time to start preparing your teams handling forms such as Series 1099, 1098, 1042-S, 3921, 5498, W-2, W-2G and more. Getting your teams ready and testing your reporting process ahead of January ensures you are set up for a successful season. […]

North America Tax Information Reporting
September 21, 2023
Sovos Education Returns to Orlando with Statutory Accounting CPE

If you didn’t join us in D.C. or San Francisco earlier this year, you won’t want to miss one last opportunity in 2023 to take part in live continuing education. Sovos Education is returning to the Orlando area for a full week of statutory accounting CPE opportunities and we’re hoping to see you there. Sun […]