Beer Direct-to-Consumer Shipping Rules

State-by-State Rules Governing Interstate DtC Beer Shipping

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There is a long list of complicated requirements to fulfill before you can ship beer DtC across state lines in the states where it is permitted. To help you bring your beer to new markets, Sovos ShipCompliant offers the following compilation of state by state compliance rules that govern the interstate shipping of beer directly to consumers.

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 beer 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 brewer 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 updated on 10/26/2020.

Alaska

Alaska currently does not regulate direct to consumer shipping of alcoholic beverages. Instead, DtC shipping operates under a determination by the Alaska Attorney General to not prohibit DtC shipments. As such, there are very few restrictions or requirements on DtC shipping of beer. However, there are many local communities that prohibit the sale of alcohol, and it remains illegal to ship alcohol to these communities.

 

Permitted

Yes - Alaska allows DtC shipping of beer

Licenses Required

Alaska does not require DtC shippers to hold a license.

Dry Communities

It is illegal to ship alcohol to any region in Alaska that has voted to prohibit the sale of alcohol in that region. There is no exception for DtC sales. Currently, there are 78 such cities and counties in the state. Common carriers will not accept packages containing alcohol going to one of these regions. A list of such “local option” communities can be found here.

Shipping Restrictions

All packages of beer 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: $1.07 per gallon of beer. Alaska does not require DtC beer shippers to remit excise tax on their sales.

Sales Tax: Alaska does not have sales tax

District of Columbia

 

Permitted

Yes - D.C. allows DtC shipping of beer

Licenses Required

There is no licensed requirement for shipping beer DtC to DC residents.

Volume Limits

Brewers are limited to shipping no more than one case per individual per month.

 

Shipping Restrictions

All packages of beer 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: $2.79 pre 31-gallon barrel; 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 new statute that will enable DtC shipping of beer. As written, this law will require DtC beer 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. However, in July 2020, Kentucky announced it was delaying implementation of this law pending the development of rules and regulations and the license applications. This process may take several months to complete. This section will be updated when Kentucky’s rules become effective; until then, DtC shipping of beer to Kentucky residents will remain illegal.

Nebraska

 

Permitted

Yes - Nebraska allows DtC shipping of beer

Licenses Required

Only holders of a Type S1 Direct to Consumer Shipper License are permitted to ship beer DtC to Nebraska residents. The license costs $500 and must be renewed annually.

Volume Limits

Beer Shipper’s Licensees are limited to shipping no more than 108 liters per individual per year.

Product Restrictions

DtC beer 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 beer 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: $0.31 per gallon of beer

Sales Tax: 5.5% + local rates

Tax Reports

Excise Tax: 35-7140 Direct Shipper Tax, due monthly.

Sales tax: Form 10 SUT Return

Shipping Reports

Per-order sales and customer data must be reported along with the monthly excise tax return.

Nevada

 

Permitted

Yes - Nevada allows DtC shipping of beer

Licenses Required

Once a brewer ships 200 cases of beer into Nevada per fiscal year (running from July 1-June 30), it must register with the state as a Certificate of Compliance holder. This certificate is available for $50, and must be renewed each year that the brewery ships more than 200 cases.

 

 

Shipping Restrictions

All packages of beer 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: $0.16 per gallon of beer

Sales Tax: 6.85% + local rates; only businesses with nexus in Nevada are required to collect and remit sales taxes on their sales to residents (Nevada has economic nexus rules for non-local businesses making either $100,000 or more, or 200+ annual transactions in the district).

Tax Reports

Excise Tax: LIQ-STC, which is due monthly.

Sales tax: TXR-01.01a SUT return

New Hampshire

 

Permitted

Yes - New Hampshire allows DtC shipping of beer

Licenses Required

Only holders of a Direct Shipper’s License are permitted to ship beer DtC to New Hampshire residents. The license costs $100 and must be renewed annually.

Volume Limits

Direct Shipper’s Licensees are limited to shipping no more than 27 gallons of beer 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 beer 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

In lieu of excise or sales taxes, New Hampshire imposes a mark up of 8% on all DtC shipments of beer 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.

Dry Communities

There is one community in New Hampshire that prohibits the sale of alcoholic beverages, including all DtC shipments. This is the town of Ellsworth.

North Dakota

 

Permitted

Yes - North Dakota allows DtC shipping of beer

Licenses Required

Only holders of a Direct Shipping License are permitted to ship beer DtC to North Dakota residents. The license costs $50 and must be renewed annually.

Volume Limits

Beer Shipper’s Licensees are limited to shipping no more than 288 ounces of beer 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 beer 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: $0.16 per gallon of beer

Sales Tax: 7%

Tax Reports

Excise Tax: Schedule G Excise Tax Report, which is due annually; this return 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.

Ohio

 

Permitted

Yes - Ohio allows DtC shipping of beer

Licenses Required

Only holders of a Type “S” Shipper License are permitted to ship beer DtC to Ohio residents. The license costs $25 and must be renewed annually.

Product Limits

All products being sold into Ohio must have their brand/labels registered with the state, including anything being shipped DtC. Any beer brand/labels that have already been registered for three-tier distribution in Ohio do not need to be re-registered for DtC shipping.

Customer Information

Direct Shipper’s Licensees must retain customer information, including volume of each shipment, for further reporting requirements.

Age Verification

Ohio requires all DtC shippers to take efforts at the time of purchase to verify the age of their customers. This can be done by getting a facsimile of the customer’s identification or using an approved online service like IDology or LexisNexis.

Shipping Restrictions

All packages of beer 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: $5.58 per barrel of beer; sales to Cuyahoga County have an additional excise tax of $0.16 per gallon.

Sales Tax: 5.75% + local rates

Tax Reports

Excise Tax: ALC-83 Malt Beverage Tax Return, due monthly. This return is also used to report three-tier distributions to the state.

Sales tax: UST-1 SUT Return

Shipping Reports

DLC-4231 Direct Shipment Report, due annually by March 1. This return should provide summary details of all shipments made in the previous year.

Oregon

Oregon only permits DtC shipments of beer from breweries located in states that will license Oregon breweries to ship beer DtC to their residents.

 

Permitted

Yes - Oregon allows DtC shipping of beer

Licenses Required

Only holders of a Direct Shipper Permit are allowed to ship beer DtC to Oregon residents. The license costs $50 and must be renewed annually. Direct Shipper Permittees are required to hold a $1,000 bond guaranteeing future tax payments. Only breweries located in states that allow DtC shipping of beer will be able to get this license.

Volume Limits

Beer Shipper’s Licensees are limited to shipping no more than 18 liters of beer per individual per month.

Customer Information

Direct Shipper’s Licensees must retain sales information, including name, address, and date of birth of purchaser and recipient (if different), and the brand name and volume of all shipments, for further reporting requirements.

 

Shipping Restrictions

All packages of beer 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: $2.60 per barrel

Sales Tax: Oregon does not have sales tax

Tax Reports

Excise Tax: OLCC DS-1, due quarterly. This return should include detailed summary of all shipments made in the previous three months.

Pennsylvania

Pennsylvania will only issue a license for DtC shipping of beer to businesses that are licensed in their home state as either a wholesaler or a retailer. Prospective DtC shippers of beer who only hold a beer manufacturing license are ineligible to make DtC shipments of beer to Pennsylvania residents, even if their beer manufacturing license enables the holder to act as a wholesaler or an off-premises retailer. Such breweries will be required to hold an additional license.

 

Permitted

Yes - Pennsylvania allows DtC shipping of beer

Licenses Required

Only holders of a Direct Beer Shipper’s License are permitted to ship beer DtC to Pennsylvania residents. The license costs $250 and must be renewed annually. Only businesses that hold a Wholesaler or off-premises Retail license are eligible for this license. Businesses that only hold a beer manufacturing license are unable to get this license.

Volume Limits

Direct Beer Shipper’s Licensees are limited to shipping no more than 192 ounces of beer per individual per month. There is a further limit of no more than 96 ounces of any single specific beer brand per individual per year.

 

Shipping Restrictions

All packages of beer 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: $0.08 per gallon of beer

Sales Tax: 6% + local rates

Tax Reports

Excise Tax: REV-1052 Report of Taxable Malt Beverages; must be accompanied by the Schedule A form.

Sales Tax: Pennsylvania SUT form

Rhode Island

Rhode Island permits residents of the state to personally import beer that they purchased while physically present at a brewer’s licensed premises, both from brewers located in and outside of the state. To facilitate these sales, Rhode Island also permits the resident to have the brewer 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 brewer to solicit or fulfill orders online or by phone from Rhode Island residents.

 

Licenses Required

There is no license required for brewers to ship beer to Rhode Island residents. However, distillers may only ship beer direct to consumers in Rhode Island when the Rhode Island resident was physically present at the brewer’s premises at the time of purchase.

Shipping Restrictions

All packages of beer 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 beer

Licenses Required

Only holders of a Direct Ship to Consumer License are permitted to ship beer DtC to Vermont residents. The license costs $330 and must be renewed annually.

Product Limits

Direct Ship to Consumer License holders may only DtC ship beers that they produce.

Volume Limits

Direct Ship to Consumer Licensees are limited to shipping no more than 36 gallons of beer per individual per month.

Customer Information

Direct Ship to Consumer Licensees must retain sales information, including name, address, and date of birth of purchaser and recipient (if different), and the brand name and volume of all shipments, for further reporting requirements.

Shipping Restrictions

All packages of beer 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:  $0.265 per gallon of beer

Sales Tax: 6% + local rates

Tax Reports

Excise Tax:  MVB-612 Alcohol Tax Return, due semi-annually.

Sales Tax: SU-451 Tax Return

Virginia

 

Permitted

Yes - Virginia allows DtC shipping of beer

Licenses Required

Only holders of a Beer Shipper’s License are permitted to ship beer DtC to Virginia residents. The license costs $230 and must be renewed annually. An additional $195 application fee applies on new licenses.

Product Limits

Beer Shipper’s License holders may only DtC ship beers that they produce or have received specific authorization for from the brand owner. In addition, all applicants for a Beer Shipper’s License must include a list of brands they intend to sell DtC into the state. These brands must also be registered with the Virginia ABC. Any labels that have been registered for sale through a Virginia distributor do not need to be registered again for DtC sales, though any designated distributor of those brands must be notified that they will also be sold DtC.

Volume Limits

Beer Shipper’s Licensees are limited to shipping no more than 2 cases of beer per individual per month. Virginia defines a case of beer to be any combination of packages that total to 288 oz.

Customer Information

Beer Shipper’s Licensees must retain sales data in case of audit and to include on required shipping reports.

 

Shipping Restrictions

All packages of beer 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: $0.2565 per gallon of beer

Sales Tax: 4.3% + local rates

Tax Reports

Excise Tax: Direct Shipper’s Report, due monthly.

Sales Tax:

ST-8 Use Tax Return, or ST-9 Sales Tax Return for breweries located in Virginia.

Shipping Reports

Per-order sales and customer data must be reported along with the monthly excise tax return.

Fulfillment House Requirements

All third-party fulfillment warehouses facilitating DtC sales to Virginia residents must be registered with the Virginia ABC. Beer Shipper’s Licensees may only use registered fulfillment warehouses, and should confirm with the ABC that their preferred providers have been registered.

No DtC Shipping of Beer

The following states do not currently allow for direct-to-consumer interstate shipping of beer

 

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado 
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Oklahoma
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming