Ohio

In 2017, Ohio was responsible for $42 million in DtC wine purchases, making it the 17th-largest DtC wine market in the country. Wineries producing more than 250,000 gallons annually currently cannot receive a license to ship DtC to Ohio residents. Nevertheless, Ohio remains a key state for DtC wine shippers.

Here’s what you need to know to:
  • 1) Become compliant
  • 2) Stay compliant
  • 3) Expand your business in Ohio
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Steps to Compliance

STEP 1: Becoming Compliant

STEP 1: Becoming Compliant

The first step in expanding any DtC business in Ohio is becoming compliant with the many rules and regulations required there. Below is a list of what to watch out for.
  • Volume Limits

    Wineries are limited to shipping no more than 24 cases per household per calendar year.
  • Shipping Restrictions

    All packages containing wine must be clearly labeled, “Alcohol Enclose: Signature of person 21 years of age or older required for delivery.”
  • Customer Information

    Ohio requires wineries to verify at the time of purchase that the customer is at least 21 years of age by using “bona fide” efforts, such as receiving a copy of their ID or using an online service.

    Wineries should collect and retain customer and order information for required reporting, and in case of audit.
  • Tax Rates

    Excise Tax: $0.02 per gallon of all DtC wine. Wineries producing fewer than 500,000 gallons annually are exempted from the state’s standard excise taxes, leaving only the 2-cent markup fee for DtC sellers. Orders shipped to Cuyahoga county will have an additional tax of $0.32 per gallon

    Sales Tax: 5.75% + local rates

STEP 2: Staying Compliant

STEP 2: Staying Compliant

The second step in expanding your business is staying compliant. Ensure you are able to continue shipping DtC in Ohio by following the guidelines below.
  • Tax Reports

    Excise Tax: ALC-37 Tax Return, due annually

    Sales Tax: UST-1 Tax Return
  • Shipping Reports

    Wineries must file the DLC4231 Direct Shipper Report, providing order-specific details of the previous year’s sales, by March 1 annually.

STEP 3: Expanding Your Business

STEP 3: Expanding Your Business

As the 17th-largest driver of sales among the 45 states that permit DtC wine sales, Ohio is prime real estate for wine sellers who are able to follow the regulations effectively.
  • License Required

    All wineries making DtC sales to Ohio residents must first receive a Type S Permit, which is only available to wineries producing less than 250,000 gallons per year. This permit is available for $25, and must be renewed annually. In addition, all out-of-state wineries must also become licensed as an Out-of-State Supplier, for a cost of $100, though if only making DtC sales under an S Permit, this registration can be renewed at no cost.
  • Product Limits

    Wineries are only permitted to sell wines that they manufacture themselves.

    All wines sold in Ohio must have their labels registered with the state. Any wines that are already registered for wholesale distribution in Ohio do not need to be re-registered for DtC sale, however.

STEP 4: Get In Touch with A DtC Expert

STEP 4: Get In Touch with A DtC Expert

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Learn how Sovos ShipCompliant can support your expanding business by helping you adhere to state DtC compliance requirements automatically.

 

Use the map below to find out how to comply with other state's direct-to-consumer wine shipping rules.