Last Updated: February 25, 2018

Permit

DTC Permit
  • Required: Yes
  • Fee: $100
  • Expiration:Dec. 31st of each year

Sales Tax

  • Required:Yes
  • State:4.50%
  • Local:Yes
  • Tax on Shipping:Yes

Excise Tax

  • Required: Yes
  • Wine 3.2% -14%: $0.93/gal
  • Wine 14.1% – 20%: $1.45/gal
  • Wine 20.1% – 24%: $2.07/gal
  • Sparkling Wine: $2.07/gal

Occupational Wholesale Tax of 2% of the Purchase Price of the Wine.

Volume Limit

Limits per Winery
  • 12 cases per person per calendar year

Reporting

  • Required:Yes
  • Sales Tax: Quarterly by the 15th
  • Excise Tax: Quarterly by the 15th
  • Direct Shipment: Quarterly by the 15th
  • Record Retention: At least 3 years

Product Requirements

Label Registration Required
  • Labels approved for wholesale distribution are also approved for direct-to-consumer
  • $25 for initial brand label and $17.50 for each additional brand product label per year
  • Label registrations valid for one calendar year
Product Restrictions
  • A direct shipper may only ship wine that was produced by the direct shipper in accordance with the direct shipper’s federal basic wine manufacturing permit.

Additional Information

As of January 1, 2016, wineries with a SD direct shipper license can ship wine directly to consumers in SD. In addition to holding a license, direct shippers must pay sales and excise taxes and file quarterly shipment reports. Beginning July 1, 2017, you will not be able to submit your direct shipper return without providing the common carrier tracking numbers. A link to the form used to apply for a SD Wine Shipper License, as well as the Sales and Use Tax license is available under License Forms. (Wineries apply for both licenses using the one application.)

  • Direct shippers are prohibited from selling products below the manufacturers’ cost.
  • A direct shipper shall record the name, address, date of birth, and telephone number of the person placing the order on the order form or other verifiable record.
  • Licensees must verify the age of the purchaser by using an Online Age Verification Service or obtaining a copy of the purchaser’s government issued photo ID.
  • A direct shipper shall label each package to be shipped in accordance with the provisions of this chapter so that it conspicuously contains words indicating the package contains alcohol and that the signature of a person twenty-one years of age or older is required for delivery.

South Dakota New Direct Shipment Report

November 10, 2016

The South Dakota Department of Revenue has released a new version of its Direct Shipment Report which now includes a column for the common carrier tracking number to be included for each shipment. Wineries can download the new Direct Shipment Report Template prepared by the Department from the Wine Institute website (located on the South … Read More ⟶

CONTACT INFORMATION

South Dakota Department of Revenue Special Tax Division
445 East Capitol Ave
Pierre, SD 57501-3100
Phone: (605) 773-3311 or (800) 829-9188 Option 2
Email: specialT@state.sd.us