Beverage Alcohol Tax News April 2021
State Beverage Alcohol Tax Update April 2021
Maine: Manufacturers Allowed to Ship Alcoholic Beverages to Out-of-State Individuals - Apr. 13, 2021
A manufacturer licensed in Maine may sell and ship its products to an individual in another state for personal use and not for resale, as long as the other state allows delivery of such alcoholic beverages.
Maine taxes on spirits do not apply to sales of spirits by Maine licensed manufacturers, bottlers and rectifiers to a person located outside of the State. Including, sales of spirits to an out-of-state distributor for resale in another state and sales of spirits directly to a consumer located in another state.
Malt liquor, wine or low-alcohol spirits products that a brewery or winery removes from Federal bonded areas for sale to an out-of-state wholesaler for resale in another state or for sale directly to a consumer located in another state are exempt from Maine excise tax.
North Dakota: Manufacturing Distillery and Satellite Location Licenses Authorized
The tax commissioner may issue a manufacturing distillery license to the owner or operator of a distillery located in North Dakota that uses a majority of North Dakota farm products to manufacture and sell spirits produced on the premises. The annual fee for a manufacturing distillery license is $100.
A manufacturing distillery may sell spirits produced by that distillery at off sale, in retail lots, and not for resale, and may sell or direct ship limited quantities of its spirits to persons inside or outside the state, as allowed. Direct sales within North Dakota are also limited. A licensee may dispense free samples of the spirits offered for sale. If the applicable local ordinance allows sales at off sale on Sundays, then they may be sold between noon and midnight.
The tax commissioner may issue event permits for up to 40 event days per calendar year to a manufacturing distillery to allow it, subject to local ordinance, to give free samples of its product and to sell its product by the glass or in closed containers at on-premises events and at its satellite location.
A manufacturing distillery may not engage in any wholesaling activities. However, a manufacturing distillery may sell distilled spirits to a domestic winery if the distilled spirits were produced from products provided by the domestic winery.
Satellite Location License
A manufacturing distillery may operate one satellite location in addition to its licensed premises for the purpose of providing samples and on-sale or off-sale retail sales. The spirits sampled or sold at the satellite location must be produced by the manufacturing distillery. A manufacturing distillery may not produce any spirits at the satellite location. A manufacturing distillery must obtain a satellite location license from the tax commissioner. The annual fee is $100 dollars.
An event permit issued for an indoor or outdoor event held at its satellite location does not count towards the 40 event days allowed at the manufacturing distillery. The manufacturing distillery may offer free samples of its spirits and may sell its spirits by the glass or in closed containers at the event held at the satellite location.
A person may not hold both a manufacturing distillery license and a domestic distillery license. After March 17, 2021, a domestic distillery licensee may rescind that license and apply for and be issued a manufacturing distillery license. After August 1, 2022, a domestic distillery licensee may not be issued a manufacturing distillery license.
A manufacturing distillery may obtain a manufacturing distillery license and a retailer license allowing the on-premises sale of alcoholic beverages at a restaurant owned by the licensee and located at the manufacturing distillery's satellite location.
A manufacturing distillery is required to report and pay the wholesaler taxes due on all spirits sold by the licensee at retail or to a retail licensee, including all spirits shipped directly to consumers. The annual wholesaler tax reports are due January 15th of the year following the year sales were made.
California: Waiver of License Renewal Fees Extended to Additional License Types - Apr. 9, 2021
The California Department of Alcoholic Beverage Control is waiving license renewal fees for licenses with expiration dates between March 1, 2021, and February 28, 2023, for specified license types. Three additional license types have been added to the waiver list: 02, 23 and 74. However, the waiver of license renewal fees for a Type 02 license only applies to specified fees.
Kentucky: Direct Shipper Licensees Required to Pay Wholesale Sales Tax - Apr. 9, 2021
Beginning March 12, 2021, a wholesale sales tax is imposed on all direct shipper licensees shipping alcohol to a consumer at a Kentucky address. The following tax rates apply:
11% for distilled spirits shipments; and
10% for wine and beer shipments.
The wholesale sales tax must be paid and reported on or before the 20th day of the calendar month after the month when possession or title of the distilled spirits, wine, or malt beverages is transferred from microbreweries, distillers, or direct shipper licensees to consumers in Kentucky.
The list of licensees that may hold a direct shipper license is expanded to include the following licensees:
distilled spirits and wine supplier, or
malt beverage supplier.
Qualifying licensed Kentucky distillers are permitted to transfer their products from the distillery to the location where the distillery licensee sells its products without having to transfer physical possession of those distilled spirits to a licensed wholesaler.
Effective January 1, 2022, a distiller selling distilled spirits must pay all the wholesale sales tax and excise tax due on those distilled spirits.
Rectifiers may purchase malt from licensed brewers in Kentucky or from eligible nonresident brewers located in or outside the United States.
Washington: Waiver of License Fees Authorized - Mar. 29, 2021
Beginning April 1, 2021, the annual fees for the Washington licenses listed below are waived for a 12-month period:
nonprofit arts organization;
sports entertainment facility;
Eligible licensees hold:
licenses that expire during the specified 12-month waiver period, and
licenses issued to licensees previously licensed during the 12-month period before the 12-month waiver period.
The waivers do not apply to any licensee that:
had their license suspended by the Liquor and Cannabis Board for health and safety violations of state COVID-19 guidelines; or
received an order of immediate restraint or citation from the Department of Labor and Industries for violating an emergency proclamation made by the governor.
Arkansas: Home Delivery of Alcoholic Beverages Allowed - Mar. 19, 2021
Effective 90 days after adjournment of the Arkansas Legislature, alcoholic beverages may be delivered directly to a consumer who is at least 21 years old at the consumer’s private residence in a wet county or territorial subdivision during legal operating hours by the following permittees:
The permittee may not deliver alcoholic beverages outside of the county where the permittee’s business is located. Alcoholic beverages must be delivered by the permittee’s employee and may not be delivered through a third-party delivery system.
Montana: Malt Beverages May Be Made with Malt Substitutes - Mar. 19, 2021
Montana amends the definition of "malt beverage" to include an alcoholic beverage made by the fermentation of malt substitutes like rice, grain of any kind, glucose, sugar, or molasses that have not undergone distillation.
North Carolina: Permit Renewal or Registration Fee Due Dates Delayed - Mar. 19, 2021
Retroactively effective June 30, 2020, payment of the fee for renewal or registration of an Alcoholic Beverage Control (ABC) permit held by an ABC permittee that was subject to an order of closure by executive order from the North Carolina governor, is not required until 90 days after the date that all executive orders limiting the full operation of the permittee because of the COVID-19 pandemic are rescinded or expire. ABC permittees are required to notify the ABC Commission in writing, including by e-mail or other electronic means, of its intent to delay payment. Also, ABC permittees who delay payment must file all applicable tax returns to the State and pay all taxes, interest, and penalties that are due and submit a recycling plan before the expiration of the 90-day period.
Effective February 25, 2021, any ABC permittee may request a refund from the ABC Commission if the permittee:
was subject to an order of closure by Section 8 of Executive Order No. 141,
is subject to any executive order limiting full operation of the business during the COVID-19 pandemic, and
has paid a fee for renewal or registration of an ABC permit for the 2020-2021 permit year.
The refund request must be made to the ABC Commission in writing, including by email or other electronic means. The refund will be granted even if the permittee is operating at limited capacity under an executive order. Any permit held by a permittee who receives a refund will remain active. A permittee that receives a refund from the Commission must repay the fee within 90 days after the date that all executive orders limiting the full operation of the permittee in response to the COVID-19 pandemic are rescinded or expire.
A person may request a refund and will not be required to repay the fee if the person:
held an ABC permit in the 2020-2021 permit year for a business that was subject to an order of closure by Section 8 of Executive Order No. 141,
paid the fee for renewal or registration of the permit, and
surrendered the permit due to closure of the person's business.
The ABC Commission must reinstate or reactivate any ABC permits that it cancelled or moved to inactive status under prior law. Any permittee whose permit was cancelled or moved to inactive status as described and who paid the permit fee to have the permit reinstated or reactivated may request a refund.
South Dakota: Storage and Consumption Allowed at Certain Events - Mar. 19, 2021
Effective July 1, 2021, persons producing cider for personal, family or similar use in a quantity of 200 gallons or less each year are exempt from the license requirements in the South Dakota Alcoholic Beverage statutes and are exempt from any tax or fee imposed. Currently, this exemption is only allowed for persons producing malt beverages or wine in a quantity of 200 gallons or less annually.
Malt beverages, cider or wine produced for personal, family or similar use may only be stored or consumed on a licensed premises if the premises is licensed to sell those products and is at an exhibition, festival, educational event, technical or sensory evaluation, or a tasting competition. Malt beverages, cider or wine must be served free of charge or as a prize by the licensed business in sample sizes of up to three fluid ounces of malt beverages or cider, or up to 50 milliliters of wine. They may not be sold or offered for sale. A licensed business may charge an admission fee for an event as long as no separate fee is charged for beverage consumption. No portion of the admission fee or any other compensation may be paid to the person who produced the malt beverages, cider or wine.
Wyoming: Permit and Delivery Requirements Amended - Feb. 25, 2021
Effective July 1, 2021, Wyoming updates:
the licensing privileges and requirements for winery and microbrewery permits;
alcoholic beverage delivery requirements; and
other miscellaneous provisions.
A winery permit may be issued by the local licensing authority authorizing the manufacture of wine and dispensing that wine for on-premises consumption. The winery may also sell its manufactured wine on site to customers for off-premises consumption, and not for resale, in a total amount of up to 2,028 ounces per sale. Winery permittees may also sell other wines for on-premises consumption when that wine is obtained from the Wyoming Liquor Division.
Each local licensing authority may set the annual fee for a winery permit between $300 and $500. If dual ownership of a winery permit and a liquor license exists, then no fee will be assessed in addition to the retail, restaurant, bar and grill or resort license fee. A winery permit may be transferred to another location and ownership of the winery may be transferred upon approval by the local licensing authority.
Winery permittees may be issued a satellite winery permit by the local licensing authority allowing the permittee to sell the wine it manufactures at up to three satellite locations within Wyoming that are separate from its licensed manufacturing site. The local licensing authority may require a public hearing and the payment of an additional permit fee of up to $100 regardless of the number of satellite locations.
A winery permittee may sell and ship its manufactured wine, under specified circumstances, to:
a Wyoming liquor licensed retail establishment;
a Wyoming household; and
the Wyoming liquor division.
Permittees shipping wine must comply with the stated requirements.
A microbrewery permit may be issued by the local licensing authority authorizing the permittee to brew and dispense malt beverages for on-premises and limited off-premises consumption. Reporting and record keeping requirements are specified.
The local licensing authority may allow the sale of malt beverages obtained through a contract brewing arrangement and other malt beverages under a microbrewery permit for on-premises consumption. Also, the microbrewery may sell on site its brewed product and the contract brewed malt beverages to customers for off-premises consumption, and not for resale, in a total amount of up to 2,000 ounces per sale.
Each local licensing authority may set the annual fee for a microbrewery permit between $300 and $500. If dual ownership of a microbrewery permit and a liquor license exists, then no fee will be assessed in addition to the retail, restaurant, bar and grill or resort license fee.
A local licensing authority may authorize a microbrewery to operate at more than one location. In that case, an additional permit fee of up to $100 may be required, regardless of the number of authorized locations.
A microbrewery permit may be transferred to another location and ownership of the microbrewery may be transferred upon approval by the local licensing authority.
Delivery of Alcoholic Beverages
Alcoholic liquors and malt beverages may be delivered to customers if all the specified requirements are met by the following:
retail liquor licensees,
winery satellite permittees,
manufacturer licensees with a satellite location, and
contract delivery services.
All sales of alcoholic liquors and malt beverages for delivery must take place in the licensed building, which includes orders placed by phone, online or through a mobile application.
A class A industry representative license applicant is no longer required to be domiciled in Wyoming.
A licensed out-of-state shipper may ship up to a total of 108 liters (currently, 36 liters) of manufactured wine to one household in Wyoming in a 12-month period.
Also, a retail liquor licensee may ship up to a total of 108 liters of manufactured wine directly to one household in Wyoming in a 12-month period.
When an application for a license, permit, renewal or any transfer of location or ownership has been filed with a licensing authority, the clerk is no longer required to place a notice of application conspicuously upon the premises shown on the application.
The annual fee for a county restaurant liquor license or a county retail liquor license for a location that is within five miles of a city or town is no longer required to match the license fee charged by the applicable city or town.
The following provisions are repealed effective July 1, 2021:
keg registration requirements;
one license or permit issued per person;
minimum purchase requirements from the division or any authorized malt beverage wholesaler in order to qualify to renew a retail liquor license;
transfer of a restaurant liquor license to another location prohibited;
requirement of malt beverage permit for state fair; and
county licenses transferred due to annexation prohibited from being transferred to or renewed on different premises within the city or town for six years after the transfer of jurisdiction.