Kansas Now Requires Licenses for all Fulfillment Houses in DtC Wine Shipments

Alexander Dunn | June 7, 2021

Kansas Governor Laura Kelly signed HB 2137 into law on May 19, 2021, establishing new regulations affecting the direct-to-consumer (DtC) wine shipments in the state. These regulations became effective immediately.

What is included in HB 2137?

HB 2137 includes provisions that now require both in-state and out-of-state fulfillment houses to register and received a Fulfillment House License, which allows the licensee to handle all logistics on behalf of a special order shipping license holder, including packaging, warehousing, order fulfillment, and shipping services. The license fee is $50 for a two-year term in addition to the application fee and modernization fee. Each location of the fulfillment house needs to be licensed and pay the fees. We recommend starting the application process immediately.

The application process is as follows:

Additionally, HB 2137 contains a provision that has changed the timing of collecting and remitting gallonage tax from annually to quarterly. Quarter 1 gallonage taxes should be remitted by the 15th of this month. 

Lastly, electronic reporting is now mandatory in Kansas. Special order wine shippers can no longer print and mail in their gallonage tax return and sales report as they have done in the past.

As always, Sovos ShipComplaint will continue to monitor for any further changes brought about by HB 2137.

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