Spirits Direct-to-Consumer Shipping Rules

State-by-State Rules Governing Interstate DtC Shipping of Spirits

Request a Demo
The following state rules provide where we have determined that the state would or would not allow spirits to be shipped under existing DtC shipping rules. Sovos ShipCompliant offers the following compilation of state by state compliance rules that govern the interstate shipping of alcohol 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 spirits 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 distiller 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 11/3/2020.

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 spirits. 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 spirits

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 spirits 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: $12.80 per gallon of spirits. Alaska does not require DtC spirits 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 spirits

Licenses Required

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

Volume Limits

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

Shipping Restrictions

All packages of spirits 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: $1.50 per gallon; 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 spirits. As written, this law will require DtC spirits 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 spirits to Kentucky residents will remain illegal.

 

Nebraska

 

Permitted

Yes - Nebraska allows DtC shipping of spirits

Licenses Required

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

Volume Limits

S1 Licensees are limited to shipping no more than 108 liters per individual per month.

Product Restrictions

DtC spirits 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 spirits 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: $3.75 per gallon of spirits

Sales Tax: 5.5% + local rates

Tax Reports

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

Sales tax: Form 10 SUT Return

Nevada

 

Permitted

Yes - Nevada allows DtC shipping of spirits

Licenses Required

Once a distiller ships 200 cases of spirits 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 distillery ships more than 200 cases.

Shipping Restrictions

All packages of spirits 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: $3.60 per gallon of spirits

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, due monthly. 

Sales tax: TXR-01.01a SUT return

New Hampshire

 

Permitted

Yes - New Hampshire allows DtC shipping of spirits

Licenses Required

Only holders of a Direct Shipper’s License are permitted to ship spirits 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 the equivalent of 60 1-Liter bottles of spirits 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 spirits 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.

Dry Communities

There is one town in New Hampshire that prohibits the sale of alcoholic beverages, including by DtC shipping: Ellsworth

Tax Rates

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

North Dakota

 

Permitted

Yes - North Dakota allows DtC shipping of spirits

Licenses Required

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

Volume Limits 

spirits Shipper’s Licensees are limited to shipping no more than 9 liters of spirits 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 spirits 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: $2.50 per gallon of spirits

Sales Tax: 7%

Tax Reports

Excise Tax: Schedule H Excise Tax Report for wine and spirits, which is due annually; Schedule G Excise Tax Report for beer, which is due annually; these returns 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.

Rhode Island

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

 

Licenses Required

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

Shipping Restrictions

All packages of spirits 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.

No Interstate DtC Shipping of Sprits

The following states do not currently allow for direct-to-consumer shipping of spirits from out-of-state sellers.

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