Permit
DTC Permit
- Required: Yes
- Fee: $350 – $1,500 initial permit
- Expiration:1 yr from issue date
- Bond:Yes
Sales Tax
- Required: Yes
- State:6.25%
- Local:see FY 2021-06
- Tax on Shipping:see Additional Information below
Excise Tax
- Required: Yes
- Wine < 20%: $1.39/gal
- Wine ≥ 20%: $8.55/gal
- Chicago wine ≤ 14%:$.36/gal
- Chicago wine >14%, but < 20%:$.89/gal
Effective 7/1/20, Chicago liquor tax applies to DTC sales.
Volume Limit
Limits per Winery
- Calendar year:12 cases per person
Reporting
- Required:Yes
- Sales Tax:Monthly by the 15th
- Excise Tax:Monthly by the 15th
- Record Retention: At least 3 years
- Chicago Excise Tax: Monthly by the 15th (see alert)
Product Requirements
Label Registration Required
- No fee
- Registrations do not expire
- Labels approved for wholesale distribution must be resubmitted and approved for direct-to-consumer.
Product Restrictions
- ONLY wines produced by the permittee may be sold and shipped to consumers
Additional Information
Beginning June 1, 2008, wineries must have an approved Illinois winery (direct-to-consumer) shipper’s license and register with the Illinois Department of Revenue remit sales and excise taxes. The license fee varies according to the annual production level of the applicant.
- Effective July 1, 2020, the Chicago liquor tax must be collected and remitted on sales made to Chicago consumers. The first return, reporting sales made in July 2020, and payment are due Aug. 15, 2020. Wineries outside of Chicago are advised to wait to submit a new account registration application until after they have made a sale to a consumer in Chicago. For additional information see the compliance alert and step-by-step instructions.
- Shipping charges are taxable. However, wineries that offer the option to purchasers to pick up the wine at the winery/tasting room are exempt from charging taxes on shipping.
- Every applicant is required to obtain a bond for $1000 or 2x its estimated tax liability, whichever amount is greater and register any brands they intend to ship. A bond may be waived after two years.
- The permit fee is a tiered structured based on the license holder’s annual production during a calendar year.
- Effective January 1, 2017 a winery shipper’s license holder submit the name and address of all third party providers authorized to ship wine on behalf of the license holder when renewing their license or applying for their initial license. A third party provider is any party, except a common carrier, which is authorized to ship wine on behalf of a licensed winery.
Illinois Sales Tax Changes for Certain DTC Licensees
December 22, 2020Beginning Jan. 1, 2021, winery shipper licensees that do not have a physical presence in Illinois and meet either of the Wayfair tax remittance thresholds are required to collect and remit all state and local imposed sales taxes, also known as Retailers’ Occupation Tax (ROT), on sales shipped to Illinois consumers at the destination rate … Read More ⟶
CONTACT INFORMATION
Illinois Liquor Control Commission
300 W. Jefferson St., Suite 300
Springfield, IL 62702
Phone: (217) 782-2136
Fax: (217) 524-1911
300 W. Jefferson St., Suite 300
Springfield, IL 62702
Phone: (217) 782-2136
Fax: (217) 524-1911
Illinois Department of Revenue
PO Box 19019
Springfield, IL 19019
Phone: (217) 782-6045
Alt. Phone: (217) 782-3336
PO Box 19019
Springfield, IL 19019
Phone: (217) 782-6045
Alt. Phone: (217) 782-3336
