Last Updated: November 12, 2019

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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% ABW: $0.93/gal
  • Wine 14.1-20% ABW: $1.45/gal
  • Wine 20.1-24% ABW: $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.

Tasting Samples for Virtual Winery Experiences Approved by TTB

 April 14, 2020

In an effort to help stimulate DTC wine sales, Wine Institute requested that TTB and California ABC provide clear guidance on whether small containers of wine may be shipped to winery customers by common carriers for virtual tastings. During Shelter-in-Place orders, this would replace the traditional tasting room experience where visitors sample small quantities of … Read More ⟶

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Licensing Forms

Reporting Forms

Statutes & Advisories

CONTACT INFORMATION

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