Beer Tax

  1. What are the definitions of "beer," "person" and "permittee?"?
  2. What is the tax rate on beer?
  3. Do I need a license or permit to handle beer?
  4. What types of licenses and permits do I need?
  5. Who pays the beer tax?
  6. How do I pay beer tax?
  7. How do I file my beer tax return?
  8. What should I do if filing electronically causes a hardship?
  9. When are the beer tax returns due?
  10. Is any beer exempt from the beer tax?
  11. Will the Wisconsin Department of Revenue (DOR) refund any beer taxes I paid?
  12. How do I correct a beer tax return that I already filed?
  13. If I file an incorrect beer tax return, will I have to pay interest and penalties?
  14. Should I notify DOR if the business has a change to its name, address, or ownership or if the business ceases operating in Wisconsin?
  15. What records should I keep for Wisconsin tax purposes, and how long should I keep them?
  16. How can I get additional information or forms about the beer tax?
  1. What are the definitions of "beer," "person" and "permittee?"
    • Beer - Any beverage made by the alcohol fermentation in water of barley malt and hops, with or without grains and sugar, containing 0.5% or more of alcohol by volume [sec. 125.02(6), Wis. Stats.]. The term "beer" is used in place of "fermented malt beverages," which is the term for beer in Wisconsin law.
    • Person - In Wisconsin's alcohol beverage law, "person" means a natural person, sole proprietorship, partnership, limited liability company, corporation, or association [sec. 125.02(14), Wis. Stats.].
    • Permittee - A person who holds an alcohol beverage permit issued by the Wisconsin Department of Revenue (DOR).
  2. What is the tax rate on beer?

    There is a $2.00 occupational tax on every 31 gallon barrel. [sec. 139.02(1), Wis. Stats.]

    • Eligible producer tax credit – If you are a brewer who produces less than 300,000 barrels of beer per year, you are eligible for a tax credit of $1.00 on every barrel for the first 50,000 barrels subject to Wisconsin beer tax [sec.139.02(2), Wis. Stats.]. To determine a brewer's total production, you must combine all the brands and labels from all production facilities regardless of where the facilities are located.
    • Inventory tax – Currently, if the tax rate changes, there is no statutory authority to impose an inventory tax on beer.
  3. Do I need a license or permit to handle beer?

    Yes. You must have a license or permit to handle beer.

    • You may not sell, manufacture, rectify, brew, or engage in any other activity relating to alcohol beverages without holding the appropriate license, permit or authorization.
    • If you want to obtain a beverage permit or license from DOR, you must also contact your municipal clerk to see if there are any licenses you need from your municipality.
  4. What types of licenses and permits do I need?
    • Retail licenses

      If you'd like to sell alcohol beverages, a Wisconsin municipality (town, village and city) subject to state law, would normally issue you a retail license.
    • Permits

      If you would like to deal in beer at the wholesale level in Wisconsin, you must apply for a Business Tax Registration (BTR) Certificate [sec. 73.03(50), Wis. Stats.] and beverage permit from DOR.  [sec. 125.28, Wis. Stats.].

      To apply for a BTR Certificate and a beverage permit:
      • Contact the DOR's Excise Tax Section at (608) 266-6701.
      BTR Certificate

      • There is a $20 registration fee for the BTR Certificate.
      • You may renew the certificate every two years for $10.

      Note: The BTR certificate and beer permits are valid until canceled by the permittee or until we revoke them. You only need one BTR certificate regardless of the number of permits or licenses you hold with DOR.

    DOR issues these beer permits:

    Types of Permits/Prefix Statute Fee Term of Permit
    Wisconsin brewery (309) sec. 125.29 none 2 years
    Wisconsin Brewpub (320) sec. 125.295 none 2 years
    Industrial beer (301) sec. 125.275 none 2 years
    Wisconsin wholesalers and importers (308) sec. 125.28 $2,400 2 years
    Out-of-state shipper (304) sec. 125.30 none 2 years
    Wisconsin public warehouse (306) sec. 125.19 $200 2 years

    DOR issues these retail beer permits:

    Types of Retail Permits/Prefix Statute Fee Term of Permit
    Sports club (318) sec. 125.27 $200 2 years
    Vessel (317) sec. 125.27 $200 2 years

    If you are a permittee and purchased beer from an out-of-state wholesaler that does not hold a permit with DOR, our Alcohol & Tobacco Enforcement Unit may confiscate the beer [sec. 139.22, Wis. Stats.].

    Security required

    • Persons who are responsible for paying the beer tax must have security (e.g., cash, bond) on file with us.
    • The amount of security must be equal to twice the person's estimated maximum monthly beer tax but not less than $1,000 or more than $100,000 [sec. 139.05(4), Wis. Stats.].

    Revocation of permits

    • If you are a permittee, it is very important to file your beer tax returns on time and pay any amount due. If you have poor filing and/or payment records, we may revoke your permits.
  5. Who pays the beer tax?

    The following permittees pay DOR the beer tax [sec. 139.05(2), Wis. Stats.]:

    • Wisconsin breweries/brewpubs on all sales made in Wisconsin.
    • Wisconsin wholesalers who import beer into Wisconsin from a foreign country.
    • Out-of-state shippers who ship beer into Wisconsin from other states.

    Note: Sports club and vessel permit holders

    If you hold this type of retail permit, you are not required to file beer tax returns with DOR. The tax on the beer you purchase in Wisconsin is paid at the wholesale level, not at the retail level.

  6. How do I pay the beer tax?

    You pay the beer tax with a monthly return [secs. 139.05(2) and 139.11(2), Wis. Stats.].

    There are two types of beer tax returns:

    1. Wisconsin Brewery Fermented Malt Beverage Tax Return - Form BT-100
      • In-state breweries and brewpubs file this return.
    2. Wisconsin Fermented Malt Beverage Tax Return - Form BT-104
      • Wisconsin beer wholesalers and out-of-state shippers file this return.

    Note: You can pay your taxes by electronic funds transfer (EFT). For more information, visit the Electronic Funds Transfer page or call (608) 264-9918.

  7. How do I file my beer tax return?

    You are required to file all fermented malt beverage tax returns electronically. You may file using My Tax Account or xml schema.

    For more information on:

  8. What should I do if filing electronically causes a hardship?

    If the Secretary of Revenue determines the requirement causes a hardship, the Secretary may waive your requirement to file electronically. If you feel filing electronically causes you a hardship, you must request a waiver.

    To request a waiver, you must do the following:

    • Request the waiver in writing. Mail your written request to:

      Mandate Waiver Request
      Wisconsin Department of Revenue
      PO Box 8949, Mail Stop 5-77
      Madison, Wisconsin 53708-8949
    • Clearly state why the requirement causes a hardship.
    • The Secretary of Revenue may consider the following factors when deciding if this requirement causes a hardship:
      1. An unusual circumstance that may prevent you from filing electronically.
        Example: You do not have access to a computer connected to the internet.
      2. Any other factor the Secretary determines is relevant.
    • If you have any questions, contact us at (608) 266-6701.
  9. When are the beer tax returns due?

    10. All beer tax returns are due by the 15th day of the month following the month covered by the return [sec. 139.05(1), Wis. Stats.]. Example: a return for October is due November 15.

    If you file a late return, you will be charged:

    Note: If you are unable to file a beer tax return and pay any beer tax you owe by the due date, we will not grant an extension.

  10. Is any beer exempt from the beer tax?

    Yes. The following are exempt from the Wisconsin beer tax [sec. 139.04, Wis. Stats.]:

    • Homemade beer that is not sold or offered for sale.
    • Homemade beer that is used for purposes of exhibition, judging or tasting at a private residence or licensed premises.  No fee may be charged for the consumption of the beer at these events.
    • Homemade beer that is produced at a home brewer's/home winemaker's supply store.  The beer may not be sold; samples may be given only by persons holding an operator's (bartender's) license from the municipality where the supply store is located.
    • Homemade beer, provided the total quantity of beer made, in a calendar year, by the person and any other person living in the same household does not exceed 100 gallons, if the household has only one person of legal drinking age or 200 gallons if the household has 2 or more persons of legal drinking age.

    Note: "Homemade" with respect to the making of beer means beer made by a person's own efforts and not for a commercial purpose, but does not require that the beer be made in the person's home.

    • Beer furnished by a brewer to employees without charge on brewery premises.
    • Beer that contains less than 0.5% alcohol by volume.
    • Beer shipped to other states or foreign countries.
    • Beer sold to industrial permittees for use in food items.
  11. Will DOR refund any beer taxes I paid?

    Beer permittees may receive refunds from DOR if one of the following applies:

    • You sold beer to the Armed Forces (e.g., Fort McCoy, Coast Guard stations, etc.)
      • File Form BT-612 [sec. 139.10(1), Wis. Stats.].
    • The beer is spoiled or unfit for consumption
      • File Form AB-605 [sec. 139.10(1), Wis. Stats.].
    • Beer shipped to wholesalers outside Wisconsin
      • Send a letter including invoices [sec. 139.04(5), Wis. Stats.].
  12. How do I correct a beer tax return I already filed?
    • You must electronically file an amended return. You are required to electronically file all beer tax reports, returns and amended returns, with us (see question #6).
    • If you are filing an amended beer tax return, you must file a true, corrected and complete return. Include all previously reported unchanged transactions.
    • Do not file a return that only reports the changes.
  13. If I file an incorrect beer tax return, will I have to pay interest or penalties?

    Yes. If you file an incorrect beer tax return, you will be charged:

    • Unpaid taxes - 12% interest per year [sec. 139.25(1), Wis. Stats.].
    • Refunded taxes – 3% interest per year [sec. 139.25(1), Wis. Stats.].
    • Negligence penalty - 25% of the tax, if you do not file a return [sec. 139.25(3), Wis. Stats.].
    • Fraud penalty - 50% of the tax, if there was intent to defeat or evade the beer tax [sec. 139.25(5), Wis. Stats.].
  14. Should I notify DOR if the business has a change to its name, address, or ownership or if the business no longer operates in Wisconsin?

    Yes. You must notify us when your business has any change to its name, address, or ownership or when you stop operating in Wisconsin.

    • You can tell us by letter or attach a note to your monthly return.
    • If your name or ownership changes and you receive a different Federal Employer Identification Number (FEIN), you must file a new application with us and update your security.
    • When you end operations, you must file a return for the last month of operations even if you were in business only a few days during that month.
    • If you have any questions about your beer tax permit, contact us at (608) 266-6701.
  15. What records should I keep for Wisconsin tax purposes, and how long should I keep them?
    • You must keep a complete copy of your beer tax returns and all records about your business for at least four years so we can determine how you calculated your tax liabilities [secs. 139.092 and 139.11(1), Wis. Stats.].
    • Required records include, but are not limited to: purchases, receipts, inventories, sales (whether taxable or exempt), distribution, and consumption of products.
    • You must keep your records organized and in a place available for review by DOR. Records must be available for inspection at all reasonable hours, including all business hours.
    • If you do not maintain your records, all the products you purchase or receive are subject to tax without benefit of any deductions.
  16. How can I get additional information or forms about beer tax?

    FOR MORE INFORMATION PLEASE CONTACT:

      Excise Tax Section 6-107
      Wisconsin Department of Revenue
      PO Box 8900
      Madison, WI 53708-8900
      Phone: (608) 266-6701
      Fax: (608) 261-7049
      Email Additional Questions

Last updated July 2, 2013