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STATE SHIPPING LAWS: Texas

Open Permit

Last Updated: September 3, 2020

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Permit

DTC Permit
  • Required: Yes
  • Fee: $526
  • Expiration: 2 yrs from issue date

Sales Tax

  • Required: Yes
  • State: 6.25%
  • Local: Yes – see Alert
  • Tax on Shipping: Yes

Excise Tax

  • Required: Yes
  • Wine ≤ 14%: $.204/gal
  • Wine >14%: $.408/gal
  • Sparkling Wine $.516/gal

Volume Limit

Limits per Winery
  • Monthly: 9 gal/person
  • 12 mos: 36 gal/person
  • State Aggregate:  35K gal/yr

Reporting

Reporting Requirements
  • Required: Yes
  • Sales Tax: Quarterly by the 10th
  • Excise Tax: Monthly by the 15th if > 5,000 gal/yr shipped; Quarterly by the 15th if < 5,000 gal/yr
  • Direct Shipment:Monthly by the 15th if > 5,000 gal/yr shipped; Quarterly by the 15th if < 5,000 gal/yr
  • Record Retention: At least 5 years

Product Requirements

Product Restrictions
  • ONLY wines produced or bottled by the permittee may be sold and shipped to consumers

Additional Information

An Out-of-State Direct Winery Shipper permit is required to ship wine to consumers. This permit may only be issued to a person who holds all state and federal permits necessary to operate the winery at the permitted location and holds a Texas use tax permit.  The TABC will notify the applicant if a bond is required. The appropriate tax collection forms will be mailed to all wineries when they receive their respective permits.

  • Before applying for the TABC’s “Out-of-State Winery Direct Shipper’s Permit”, a winery must obtain a Texas Use  Tax Permit from the state.
  • Wineries are advised to complete the “Texas Nexus Questionnaire” with their sales tax permit application and submit all completed forms via U.S. Mail.
  • Out-of-state wineries shipping directly to consumers in Texas are obligated to collect and remit local sales tax. Out-of-state wineries with no physical presence in Texas may elect to collect and remit a single local use tax rate. Out-of-state wineries with a physical presence in Texas are obligated to collect and remit local use taxes at the individual rates of the jurisdictions where wine is shipped.
  • Note wineries do not have to register with the Secretary of State’s Office in Texas.
  • Effective Jan 1, 2019, permittees shipping 5,000 gallons or more to TX consumers per calendar year are required to report shipments and pay excise taxes monthly and permittees shipping less than 5,000 gallons to TX consumers annually are required to report shipments and pay excise taxes quarterly. Prior to this change, the reporting threshold was 4,000 gallons annually and the filing frequencies were quarterly and annual.
  • Effective Jan. 1, 2019, the name of the common carrier and common carrier tracking number for each shipment must be included on the DTC report.
  • All wine sold or shipped by an out-of-state winery direct shipper’s permittee must be in a package that is clearly labeled as containing wine.

Register for the Free Virtual Texas ABC Talk

November 25, 2020

Members are invited to register to attend the Texas Alcoholic Beverage Commission’s (TABC) free virtual presentation that provides guidance for manufacturers on navigating the product registration process (formerly called label approvals) on Dec. 9 at 10:00am PST (12:00pm CT).

View All Texas Alerts View All Compliance Alerts

Licensing Forms

  • Application for Out-of-State Winery Direct Shipper's Permit
  • Application for Renewal of Out-of-State Winery Direct Shipper's Permit
  • Texas Nexus Questionnaire AP-114 (submit with sales tax permit application)
  • Texas Application for Sales and Use Tax Permit
  • Instructions for Completing Texas Sales and Use Tax Permit Application
  • Form 01-799 Remote Seller's Intent to Elect or Revoke Use of Single Local Use Tax Rate

Reporting Forms

  • Monthly Direct Shipper's Report - NEW- Required Beginning 1/2019 Reporting Period
  • Quarterly Direct Shipper's Report - NEW - Required Begining Q1 of 2019 Reporting Period
  • Texas Sales Tax Filing Requirements
  • Instructions for Completing Texas Sales and Use Tax Return
  • Texas Comptroller eSystems for filing Sales and Use Tax Returns
  • Texas Sales and Use Tax Forms

Statutes & Advisories

  • Winery Shipping Requirements
  • Tex. Alco. Bev. Code § 16.09 Direct Shipment to Consumers
  • RULE §41.56 Out-Of-State Winery Direct Shipper's Permits
  • TABC Notice to Direct Shipper Permit Holders (Dec. 21, 2018)
  • Out-Of-State Wineries and Texas Taxes Bulletin
  • Clarification for Transacting Business in Texas from Texas Secretary of State

CONTACT INFORMATION

Texas Alcoholic Beverage Commission
5806 Mesa Dr.
Austin, TX 78731
Phone: (512) 206-3333
Fax: (512) 206-3449
Texas Comptroller of Public Accounts
PO Box 13528
Capitol Station
Austin, TX 78711-3528
Phone: (800) 252-5555
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