Yes- Kentucky allows DtC shipping of cider
Only holders of a License to Direct Ship to Consumers are permitted to ship cider DtC to Kentucky residents. The license costs $100 and must be renewed annually.
DtC cider shippers are required to register their brand/labels for all ciders they will ship DtC to Kentucky residents. If a DtC shipper has registered any of their brands for sale through Kentucky wholesalers and will now sell those brands DtC, they will need to re-register those brands to inform the state that they will be shipped DtC and vice versa.
In addition, DtC cider shippers are permitted to ship only brands that they produce or bottle themselves, or are produced or bottled for them in an exclusive agreement. DtC shippers must be at least the Primary American Source for the ciders they will ship.
Cider shippers are limited to shipping no more than 10 cases per individual per month.
Third Party Services Restriction
Kentucky prohibits DtC shipments to be sent from any address other than the address the DtC shipper has registered as their licensed premises on their license application. During the application, the DtC shipper must provide proof that that premises is owned or otherwise occupied by the DtC shipper. This means that the use of third-party services to facilitate the shipping process, such as fulfillment houses, is prohibited (use of carriers is not affected by this rule).
All packages of cider 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.
DtC shippers are prohibited from delivering cider into any community in Kentucky that prohibits the local sale of alcohol (“dry” communities). These communities are based on election precincts and no set list of dry communities is available. However, under the state’s DtC laws, it is the consumer that is liable for any delivery to a dry community, and the DtC shipper and their carrier may be held blameless if they take good faith efforts to prevent delivery to dry communities. As such, during a sale, DtC shippers should make sure to inform their Kentucky consumers of the prohibition and risk of shipping to a dry community, and have their Kentucky consumers positively affirm that they reside in a community that permits the sale and delivery of alcoholic beverages.
Excise Tax: ciders with an ABV of 7% or less are taxed at the beer rate of.080645 per gallon ($2.50 per 31-gallon barrel); ciders with an ABV greater than 7% are taxed at the wine rate of $0.50 per gallon
Sales Tax: 6%
Wholesale Sales Tax: in addition to other taxes, Kentucky imposes an ad valorem tax on the wholesale price of ciders sold into the state, which includes on DtC shipments; for DtC sales, the state has determined that the wholesale price can be deemed to be 70% of the stated retail price; the Wholesale Sales Tax for cider is then 10% of the wholesale price
Excise Tax and Wholesale Sales Tax: both taxes must be remitted together using the 73A550 return, due quarterly; this return must be accompanied by a schedule providing summary information of each delivery made in the previous quarter
Sales Tax: Online Filing Only