PrintPermit
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.
States Enforce DTC Rules
February 6, 2020The 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 ⟶
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
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
