Last Updated: November 12, 2019

Print Friendly, PDF & EmailPrint

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

Excise Tax & Occupational Wholesale Tax Required
  • 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
  • Wholesale Tax: 2% of Purchase Price

Volume Limit

Limits per Winery
  • Calendar Year: 12 cases per person

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
  • Registration Fee:$25 initial brand label, $17.50 additional labels of same brand
  • Expiration:Dec. 31st of each year

Labels approved for wholesale distribution are also approved for DTC

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.

States Enforce DTC Rules

 February 6, 2020

The continued growth of the direct-to-consumer (DTC) sales channel means that states will continue to make DTC shipping laws a priority for enforcement in 2020. An increasing number of states are investigating DTC shipments and conducting compliance checks on direct shipper permit holders and common carriers. Wineries that ship directly to consumers outside of California … Read More ⟶

View All South Dakota Alerts View All Compliance Alerts

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