Kentucky to Begin Permitting DtC Shipping of Alcohol

Alex Koral | December 15, 2020

In April, 2020, Kentucky passed HB 415, which established new rules permitting the direct-to-consumer (DtC) shipping of alcoholic beverages. Early on December 14, 2020, the Kentucky legislature’s joint committee on Licensing, Occupations, and Administration Regulations voted to approve new regulations enforcing HB 415 making those laws effective and finally allowing DtC shipping to begin in the state.

The approval of these regulations allows the Kentucky Alcoholic Beverage Control to issue approved licenses to applicants for the new License to Direct Ship to Consumers. Once an applicant receives their approved license and completes any other required registration with the state’s Department of Revenue, they may begin selling and shipping alcoholic beverages directly to Kentucky residents.

Notably, Kentucky’s bill will allow all alcoholic beverages to be shipped to the states’ residents. However, only parties that hold a production license issued by their home state will be eligible for a License to Direct Ship to Consumers, meaning retailers are not permitted to ship DtC into Kentucky.

This new set of laws replaces previous statutes for DtC shipping to Kentucky, which for various reasons proved ineffective. The laws under HB 415 closely resemble other states’ DtC shipping laws and it is expected that the state will soon prove to be a valued new destination for DtC shippers.

What Are the Rules For Shipping into Kentucky?

Like all states that permit DtC shipping of alcohol, Kentucky imposes many rules on shippers. These include:

The addition of a new state to the map that permits DtC shipping is always a matter of good news for us at Sovos ShipCompliant and for our customers. When suppliers are permitted access to new markets and are allowed to fulfill consumers’ desire for variety and new products, and states are able to reap additional tax payments, it benefits all parties. We look forward to providing the necessary support for our users to manage their direct shipper compliance and tax needs in Kentucky.

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