Spirits Direct-to-Consumer Shipping Rules
State-by-State Rules Governing Interstate DtC Shipping of Spirits
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When reviewing this information, keep the following in mind:
- The rules we’ve compiled here only reflect regulations that a state would impose on a spirits supplier located in a different state, looking to enter a new market. They do not include rules on setting up a production plant, or for federal or home-state compliance.
- This is not a definitive or complete guide. It should be used only as a starting place, to help lead you in the right direction as you expand your distribution. Do not take this as the final word on any regulatory issue.
- When you actually approach selling in a new state, be sure to consult with someone who can properly interpret how the rules apply to your individual circumstances: your compliance team, your legal counsel or even another distiller located in that state.
And don’t forget that Sovos ShipCompliant offers several tools to help you in this process, with a cloud-based, easy-to-use platform for your licensing, product registration, product management and state filing needs. Sovos provides complete and up-to-date state rules guidance in all ShipCompliant products. You can request a demo anytime.
*State-specific content was last reviewed and is accurate as of 09/18/2024.
Alaska
Permitted
Yes - Alaska allows DtC shipping of spirits
Licenses Required
A Manufacturer Direct Shipment License is required to ship alcohol direct to Alaska residents. Only distillers that produce less than 50,000 proof gallons of distilled spirits per year may receive the license.
Does instate distillery need a license?
No, Alaska manufacturers may ship their products under their production license.
License Cost
An Alaska Manufacturer Direct Shipment License costs $200
License Term
An Alaska Manufacturer Direct Shipment License expires two years from the issue date.
NOOP/Product Limits
Yes, Alaska restricts direct shippers to shipping only alcoholic beverages that they produce.
Product Registration
No, Alaska does not require brand registrations.
Volume Limits
Spirits shippers may sell up to 4.5 liters of spirits per person per year, and no more than 1.5 liters of spirits per transaction.
Record Collection
Spirits shippers must retain records of all shipments made into the state for up to two years and make the records available to AMCO upon request
Age Verification
Spirits shippers are required by Alaska law to receive a copy of a valid ID or use an approved service to verify the age of the purchaser at the time of purchase.
SUT Return
DtC shippers with economic nexus in Alaska should file local taxes through the online Alaska Remote Sellers Sales Tax Commission.
Excise Tax Return
Spirits shippers should use Form 500 Excise Tax Return on Alcoholic Beverages, which must be filed online monthly
Shipping Report
Alaska does not require a shipping report from DtC shippers.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Dry Communities
There are 75 "dry" communities in Alaska, which prohibit all importation of alcohol including by DtC shipments. In addition, DtC shippers are restricted from shipping into communities that rely on USPS for last-mile delivery.
Alaska prohibits select persons in the state from purchasing any alcoholic beverages, including by DtC shipments. DtC shippers must ensure that neither the purchaser or recipient of a DtC shipment are restricted by the state before completing sales to the state.
Tax Rates
Excise Tax: Alaska assess a $12.80 per gallon excise tax on DtC shipments of spirits.
Sales Tax: Alaska does not maintain a state sales tax. However, local communities are able to assess their own sales tax, which range from 0-7.5%. DtC shippers are only obligated to collect and remit these local taxes if they have economic nexus in the state.
Arizona
Arizona will only issue a Series 02D Microdistillery license to businesses that produce less than 20,000 gallons of spirits per year. Only craft distilleries producing below that threshold have permission to make remote sales and deliveries to Arizona consumers.
Permitted
Yes - Arizona allows DtC shipping of spirits
License Name
Out of State Craft Distillery License (Series 02D)
Instate distillery need license?
No - Arizona craft distillers may also ship under their In-State Craft Distiller (Series 18) license
License cost
$600 for an inital license; $370 for a renewal
License term
One year
Age verification
Yes - Arizona consumers must provide the distiller with verification of their legal age
Tax Rates
Sales Tax: 5.6% + local taxes
Excise Tax: $3.00 per gallon
SUT Return: Online Transaction Privilege Tax (TPT) filing
Shipping labels
"Contains Alcohol: Signature of person 21 years or older required for delivery"
District of Columbia
Permitted
Yes - D.C. allows DtC shipping of spirits
Licenses Required
There is no licensed requirement for shipping spirits DtC to DC residents.
Volume Limits
Distillers are limited to shipping no more than one case per individual per month.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Tax Rates
Excise Tax: $1.50 per gallon; D.C. does not require DtC shippers to remit excise tax on their sales
Sales Tax: 10.25% for alcohol (6% general tax rate); only businesses with nexus in D.C. are required to collect and remit sales taxes on their sales to resident (D.C. has economic nexus rules for non-local businesses making either $100,000 or more, or 200+ annual transactions in the district).
Kentucky
In April 2020, Kentucky passed a statute that enables DtC shipping of spirits. As written, this law will require DtC spirits shippers to be licensed by the Kentucky Alcohol Beverage Control division, abide by customer volume limits, take efforts to not ship to any dry community in the state, and collect and remit both the state’s excise and sales taxes.
Permitted
Yes - Kentucky allows DtC shipping of spirits
Licenses Required
Only holders of a License to Direct Ship to Consumers are permitted to ship spirits DtC to Kentucky residents. The license costs $100 and must be renewed annually.
Volume Limits
Spirits shippers are limited to shipping no more than 10 gallons per individual per month.
Product Restrictions
DtC spirits shippers are permitted to ship only brands that they produce or bottle themselves, or are produced or bottled for them in an exclusive agreement. DtC shippers must be at least the Primary American Source for the spirits they will ship.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Dry Communities
DtC shippers are prohibited from delivering spirits into any community in Kentucky that prohibits the local sale of alcohol (“dry” communities). These communities are based on election precincts and no set list of dry communities is available. However, under the state’s DtC laws, it is the consumer that is liable for any delivery to a dry community, and the DtC shipper and their carrier may be held blameless if they take good faith efforts to prevent delivery to dry communities. As such, during a sale, DtC shippers should make sure to inform their Kentucky consumers of the prohibition and risk of shipping to a dry community, and have their Kentucky consumers positively affirm that they reside in a community that permits the sale and delivery of alcoholic beverages.
Tax Rates
Excise Tax: $1.92 per gallon
Sales Tax: 6%
Wholesale Sales Tax: in addition to other taxes, Kentucky imposes an ad valorem tax on the wholesale price of spirits sold into the state, which includes on DtC shipments; for DtC sales, the state has determined that the wholesale price can be deemed to be 70% of the stated retail price; the Wholesale Sales Tax for spirits is then 11% of the wholesale price
Tax Reports
Sales tax: Online filing only
Excise Tax and Wholesale Sales Tax: both taxes must be remitted together using the 73A550 return, due quarterly; this return must be accompanied by a schedule providing summary information of each delivery made in the previous quarter
Nebraska
Permitted
Yes - Nebraska allows DtC shipping of spirits
Licenses Required
Only holders of a Type S1 Direct to Consumer Shipper License are permitted to ship spirits DtC to Nebraska residents. The license costs $500 and must be renewed annually.
Volume Limits
S1 Licensees are limited to shipping no more than 108 liters per individual per month.
Product Restrictions
DtC spirits shippers who also sell their products to Nebraska wholesalers for distribution in the state are required to provide their Nebraska wholesalers with a list of the brands they will sell DtC.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Tax Rates
Excise Tax: $3.75 per gallon of spirits
Sales Tax: 5.5% + local rates
Tax Reports
Excise Tax: 35-7140 Direct Shipper Tax, due monthly
Sales tax: Form 10 SUT Return
New Hampshire
Permitted
Yes - New Hampshire allows DtC shipping of spirits
Licenses Required
Only holders of a Direct Shipper’s License are permitted to ship spirits DtC to New Hampshire residents. The license costs $500 and must be renewed annually.
Volume Limits
Direct Shipper’s Licensees are limited to shipping no more than the equivalent of 60 1-Liter bottles of spirits per individual per year.
Customer Information
Direct Shipper’s Licensees must collect sales information, including the name and address of purchaser and recipient (if different), and the amount of product shipped for further reporting requirements.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Dry Communities
There is one town in New Hampshire that prohibits the sale of alcoholic beverages, including by DtC shipping: Ellsworth
Tax Rates
In lieu of excise or sales taxes, New Hampshire imposes a mark up of 8% on all DtC shipments of spirits into the state. This tax may be collected at the time of purchase from the customer.
Tax Reports
Direct Shipping Monthly Report, due monthly. This return is where the DtC shipper will remit the 8% tax and provide summary details of all shipments made in the previous month.
New York
Permitted
Yes
License Name
Direct Shipper's License, which is only available to distilleries that produce less than 75,000 proof gallons per year and that operate in a state that currently permit DtC shipping of spirits.
Instate distillery need license?
No, licensed New York craft distillers may ship under their existing production license..
NOOP/product limits
Yes, New York restricts direct shippers to shipping only alcoholic beverages that they produce.
License term
$125 One year.
Product registration
No.
Volume limits
36 cases per individual per year, with no more than 9 liters per case.
Record collection
While spirits shippers are not specifically required by New York to collect specific data on their shipments, they should maitain records of their sales in case of audit.
Age verification
While spirits shippers are not explicitly required by New York state law to verify consumers' ages at the time of purchase, it is recommended they take affirmative steps to limit minors' ability to make purchases.
Sales tax
4% + 0-5% local taxes.
Excise tax
$0.67 per liter for spirits with an ABV of 24% or less; $1.70 per liter for spirits above 24% ABV.
SUT return
Spirits shippers should use the Online Service portal offered by the New York Department of Taxation for their sales tax filings. The filing frequency can vary depending on the shipper's annual sales tax liability, with quarterly filings being the most common.
Excise tax return
Spirits shippers to New York should use the MT-456 Alcoholic Beverages Tax Return to remit their excise taxes. Initially this return is due monthly, but spirits shippers may petition to file annually.
Shipping report
New York does not require a shipping report from DtC shippers.
Shipping labels
"Contains Alcohol: Signature of person 21 years or older required for delivery".
Miscellaneous
New York restricts DtC shipping of spirits to in-state craft distilleries or out-of-state distilleries that are equivalent in size to New York craft distilleries (under 75,000 gallons annual production). Further, New York maintains "reciprocity" rules, which extends DtC shipping privleges only to distilleries operating in states that enable New York distilleries to DtC ship to their residents.
North Dakota
Permitted
Yes - North Dakota allows DtC shipping of spirits
Licenses Required
Only holders of a Direct Shipping License are permitted to ship beverage alcohol DtC to North Dakota residents. The license costs $50 and must be renewed annually.
Volume Limits
spirits Shipper’s Licensees are limited to shipping no more than 9 liters of spirits per individual per month.
Customer Information
Direct Shipper’s Licensees must collect sales information, including the name and address of purchaser and recipient (if different), and the amount of product shipped for further reporting requirements.
Fulfillment House Requirements
All third-party fulfillment warehouses facilitating DtC sales to North Dakota residents must be licensed by the state.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Tax Rates
Excise Tax: $2.50 per gallon of spirits
Sales Tax: 7%
Tax Reports
Excise Tax: Schedule H Excise Tax Report for wine and spirits, which is due annually; Schedule G Excise Tax Report for beer, which is due annually; these returns must also be accompanied by order-specific customer and shipment data.
Sales tax: ST Return
Shipping Reports
Per-order sales and customer data must be reported along with the monthly excise tax return.
Rhode Island
Rhode Island permits residents of the state to personally import spirits that they purchased while physically present at a distiller’s licensed premises, both from distillers located in and outside of the state. To facilitate these sales, Rhode Island also permits the resident to have the distiller ship the purchased spirits back to the resident’s home through a common carrier. There are no provisions in Rhode Island law that would permit a local or remote distiller to solicit or fulfill orders online or by phone from Rhode Island residents.
Licenses Required
There is no license required for distillers to ship spirits to Rhode Island residents. However, distillers may only ship spirits direct to consumers in Rhode Island when the Rhode Island resident was physically present at the distillery premises at the time of purchase.
Shipping Restrictions
All packages of spirits must be clearly labeled, “Contains Alcohol: Signature of a person aged 21 years or older required for delivery.” In addition, only licensed carriers may deliver packages containing alcohol.
Vermont
Permitted
Yes - Vermont allows DtC shipping of RTD cocktails made from spirits with an ABV less than 12%
License Name
A Direct Ship To Consumer License is required to DtC ship RTD cocktails in Vermont.
Instate distillery need license?
Yes, Vermont distillers must hold a Direct Shipper License in addition to their production license.
License cost
A Vermont Direct Ship to Consumer License costs $330.
License term
Vermont Direct Ship to Consumer Licenses expire annually on April 30 and should be rewened before that date.
NOOP/product limits
Vermont says that DtC shippers may only direct ship RTD cocktails that they produce themselves. Only spirits products marketed and sold as RTD cocktails may be DtC shipped; such products may not have an ABV over 12% or be sold in containers greater than 24 oz.
Product registration
No, DtC shippers do not need to register their products prior to shipping them
Volume limits
RTD cocktail shippers are limited by Vermont to shipping no more than 12 cases per individual per year.
Record collection
RTD cocktail shippers to Vermont must collect the name and address of persons delivered to; shipment dates; carrier used; and quantity and value of each shipment for reporting purposes.
Age verification
While RTD cocktail shippers are not explicitly required by Vermont state law to verify consumers' ages at the time of purchase, it is recommended they take steps to limit minors' ability to make purchases.
Tax Rates
Sales tax: Vermont imposes a tax on all sales of alcohol in the state at a state rate of 6% with local rates ranging from 0-1%.
Excise tax: Vermont assesses a tax of $1.10 per gallon on RTD cocktails sold in the state.
Tax Reports
SUT return: RTD cocktail shippers to Vermont should use the SU-451 form, which can be filed online through the myVTAX portal, for sales tax filings. The filing frequency can vary depending on the shipper's annual sales tax liability.
EXT return: RTD cocktail shippers to Vermont should use the MVB-612 form to remit their excise taxes, which is due semi-annually.Shipping Reports
Per-order sales and customer data must be reported along with the monthly excise tax return.
Shipping report
RTD cocktail shippers to Vermont must include a summary report of their shipments with their excise tax return.
Shipping labels
"Contains Alcohol: Signature of person 21 years or older required for delivery" is required to appear on packages of alcohol being shipped DtC to Vermont.
Delivery restrictions
N/a.
Delivery restrictions
Alcoholic beverages may not be shipped into dry cities in Vermont, of which there are two: Athens and Baltimore.
No Interstate DtC Shipping of Spirits
The following states do not currently allow for direct-to-consumer shipping of spirits from out-of-state sellers.
- Alabama
- Arizona
- Arkansas
- California
- Connecticut
- Colorado
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachussets
- Minnesota
- Mississippi
- Missouri
- Montana
- New Jersey
- New Mexico
- North Carolina
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
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