- Expiration:1 yr from issue date
Sales Tax Required
- Tax on Shipping:Yes
Excise Tax & Wine Wholesale Tax Equivalent Required
- Excise Tax: $0.50/gal
- Wholesale Tax: 10% of wholesale price*
*If a wholesale price is not readily available, the direct shipper licensee shall calculate the wholesale cost to be 70% of the retail price of the wine.
Limits per Winery
- 10 cases per person per month
- Sales Tax: monthly
- Excise Tax: Quarterly by the 20th
- Direct Shipment: Quarterly by the 20th
- Record Retention:at least three years
Brand Label Registration Required
A direct shipper licensee shall register with the department all brands the licensee intends to ship to consumers in KY.
Kentucky’s new law to allow for the direct-to-consumer (DTC) shipping of wine, beer and spirits by producers becomes effective on July 15, 2020. Upon approval of the regulations on Dec. 14 2020, ABC approved applicants may remit the $100 annual fee and receive a license electronically.
Registration with the Kentucky Secretary of State’s office is not a requirement for out-of-state applicants for direct shipper licenses.
After receiving a direct shipper license from ABC, direct shippers must contact the Kentucky Department of Revenue to set up a revenue account and register to Kentucky excise, sales and applicable local taxes. Since Kentucky currently has an 10% “wholesale tax” on wines sold through the three-tier system, DTC shippers will collect and pay an equivalent wholesale tax (which is to be calculated based on 70% of the retail price).
Applicants should note that the associated regulations prevent California wineries from using a fulfillment house to process and send shipments to consumers in Kentucky on their behalf. At this time, any wineries shipping wine to Kentucky residents should be doing so from their own licensed premises.
Kentucky Launches DTC Shipping ProgramDecember 22, 2020
On Dec. 14, the Kentucky legislature’s Interim Joint Committee on Licensing, Occupations, and Administration Regulations approved the final Direct Shipping Administrative Regulation allowing the Kentucky ABC to process requests for Direct Shipper Licenses authorized under legislation (HB 415) enacted earlier this year. While Kentucky’s new law allowing for the direct-to-consumer (DTC) shipping of wine, beer … Read More ⟶