The updated Direct Wine Seller’s Permit Application for Indiana is now available on the Indiana Alcohol and Tobacco Commission (ATC) website. To qualify for a Direct Wine Seller permit the applicant must not have distributed wine through a wine wholesaler in IN within the 120 days preceding their initial application or the applicant must be licensed as an IN Farm Winery. Any winery holding a federal basic permit that does not annually sell more than one million gallons of wine in the state of Indiana may be considered a farm winery and eligible to receive a farm winery permit. The Direct Wine Seller permit fee for wineries shipping up to 1000 cases during the permit year is $100. Those shipping more than 1000 cases will face a tiered structure that tops out at $500 for those shipping up to 5,000 cases during the permit year. The annual fee for a Farm Winery permit is $500. The total amount of direct shipments into IN from a Direct Wine Seller during a permit year may not exceed 5,000 cases.
Out-of-state wineries only applying for a Direct Wine Seller permit must complete the New or Transfer Permit form and Supplement for Direct Wine Seller’s Permit, and obtain an Out-of-state Retail Merchant Certificate from the IN Department of Revenue. In addition, corporations and LLCs are required to have a Registered Agent in IN and file a Certificate of Existence with the IN Secretary of State’s Office. There are a few items on the Application for a New or Transfer Permit that are not applicable to out-of-state wineries.
Sections of the application that do not need to be completed are:
- General Questions Part 1, Step 3: Qualifications only the Sole Owner/Partnership Permit, Corporation Permit and LLC/LLP Permit sections,
- Step 5: Permit Type Specific Questions and
- Step 7: Floor Plans.
Wineries wishing to both sell to an Indiana wholesaler and ship direct to Indiana consumers can apply for a Farm Winery permit and a Direct Wine Seller permit. Out-of-state wineries applying for both a Farm Winery permit and a Direct Wine Seller’s permit can apply for both permits simultaneously, but applicants must complete a separate New or Transfer Permit form for the Farm Winery permit. Additionally, a winery currently licensed as a Primary Source in Indiana must terminate their Primary Source license in order to be eligible to hold a Direct Wine Seller permit or a Farm Winery Permit. (A winery that is licensed as a primary source in Indiana may not also hold a Direct Wine Seller permit or a Farm Winery Permit.)
As of July 1, 2015, direct wine sellers are no longer required to have an initial face-to-face meeting with a consumer prior to direct shipping to that consumer. Instead, licensed direct shippers are allowed to use standard age verification procedures to ship off-site sales to Indiana consumers. There is an aggregate consumer volume limit of 24 cases of wine per consumer per year. The consumer is responsible for not exceeding the 24 case total. The total amount of direct shipments into IN from a Direct Wine Seller during a permit year (July 1 – June 30) may not exceed 5,000 cases. Direct wine sellers must pay sales and excise taxes and file monthly reports with the Department of Revenue. All of the required forms are available on the Indiana State Shipping Laws section of Wine Institute’s website.