Arizona Releases New Direct-to-Consumer License

Daniel Kostrzewa | November 30, 2016

On November 29, the Arizona Department of Liquor Licenses and Control (DLLC) released the application for the new Series 17W Direct-to-Consumer (DtC) Wine Shipment License. As discussed in a previous blog post this new license is available to wineries of all sizes, granting them permission to make DtC sales to Arizona residents. This new license applies to both onsite and offsite sales, so going forward, to make onsite DtC sales to Arizona residents, a winery must have a 17W license.

The application must be filled out online, and is available here. Instructions on how to fill out the application can be found here.

Applicants must have an Arizona Transaction Privilege Tax (TPT) number. (In Arizona, TPT serves as the equivalent of sales tax, and is due on DtC sales of wine; a monthly TPT return must also be filed, even if no sales have been made in the prior filing period.) The online application for a TPT license can be found here. It takes about 6-8 days for the Arizona Department of Revenue to process an application. You must have a TPT license number before you can apply for a type 17W license.

To apply, you must supply the DLLC with a copy of both your TTB Federal Basic Permit and your home state license. These copies can either be mailed to the DLLC, or electronically submitted in a PDF format.

The DLLC must also receive a payment of $225 before it will process an application. This payment must be mailed to the DLLC, and accompany an invoice that is generated after you fill out an application.

Once a winery receives its new 17W license, it may begin selling directly to Arizona residents. Compliance rules for these shipments include:

Notably, the addition of the 17W type license does not replace the existing Farm Winery license. Therefore, wineries with under 20,000-gallon annual production, that already have a Farm Winery license can continue to sell DtC under that license.

A 17W type license must be renewed annually in February.

If you have a ShipCompliant account, this new license and the accompanying rule set will soon be available.