Does Illinois permit DtC shipping of wine?
What license is required to ship wine DtC in Illinois?
A Winery Shipper's License is required to ship wine DtC in Illinois.
Does an instate winery need a separate license to ship in Illinois?
Yes, Illinois wineries must hold a wine Direct Shipper License in addition to their production license.
How much does a DtC shipping license cost in Illinois?
An Illinois Winery Shipper's License costs vary depending on the size of the winery applying. A class 1 license, for wineries producing less than 250,000 gallons per year, with an initial cost of $350, and $250 for renewals; a class 2, for wineries producing 250 to 500,000 gallons per year, with a $1,000 initial cost, and $750 renewal cost; and a class 3, for wineries producing more than 500,000 gallons per year, with a $1,500 initial cost, and a $1200 renewal cost.
What is the DtC shipping license term in Illinois?
Illinois Winery Shipper's Licenses expire one year from issue date.
Do any NOOP or similar product limits apply in Illinois?
Yes, Illinois restricts wine shippers to shipping only wines that are manufactured by the licensee.
Is product registration required for DtC shippers in Illinois?
Yes, all wines being sold to Illinois must have their labels registered. Labels registered for sale to an Illinois distributor do not need to be re-registered.
Do any volume limits apply to DtC shipments in Illinois?
Wine shippers are limited to shipping no more than 12 cases per individual per year in Illinois.
What record collection is required of DtC shippers in Illinois?
While wine shippers are not specifically required by Illinois to collect certain data on their shipments, they should collect all order and sales data and retain it for several years in case of audit.
What age verification rules apply to DtC shippers in Illinois?
While wine shippers are not explicitly required by Illinois state law to verify consumers' ages at the time of purchase, it is recommended they take steps to limit minors' ability to make purchases.
What sales tax rates are applied to DtC shipments in Illinois?
Illinois imposes a sales tax on all sales of wine in the state, with a state rate of 6.25% and local rates ranging from 0-5.25%. Note, only wine shippers with nexus in Illinois (physical presence or over $100,000 in annual revenue) are required to collect local taxes; other wine shippers may collect and remit the state rate only.
What excise tax rates are applied to DtC shipments in Illinois?
Illinois assesses a tax on all sales of wine in the state at a rate of $1.39 per gallon for wines with an ABV of 20% or less and $8.55 per gallon on wines with an ABV greater than 20%.
What sales and use tax return is required of DtC shippers in Illinois?
Wine shippers to Illinois should use the ST-1 and ST-2 SUT returns or use the MyTaxIllinois online portal for their sales taxes, the filing frequency can vary depending on the shipper's annual sales tax liability.
What excise tax return is required of DtC shippers in Illinois?
Wine shippers to Illinois should use the RL-26-W Direct Wine Shipper Return to remit their excise taxes, which is due monthly.
What shipping report is required of DtC shippers in Illinois?
Illinois does not require a shipping report from DtC shippers.
What warning notice is required to appear on packages containing alcohol being DtC shipped into Illinois?
"Contains Alcohol: Signature of person 21 years or older required for delivery" is required to appear on packages of alcohol being shipped DtC to Illinois.
What delivery restrictions apply to DtC shipments to Illinois?
Illinois requires all DtC wineries to list any third-party service they use to facilitate their shipments to Illinois, except for common carriers. Further, such third-party providers must furnish annual reports to the ILCC. Failure to do so can be imputed to wineries using their service.