Liquor Tax
Distilled Spirits, Cider, and Wine

  1. What are the definitions of "distilled spirits," "wine," "cider," "liquor," "person" and "permittee?"
  2. What is the tax rate on liquor?
  3. When is there an inventory tax?
  4. Do I need a license or permit to handle liquor?
  5. What types of licenses and permits do I need?
  6. Who pays the liquor tax?
  7. How do I pay the liquor tax?
  8. How do I file my liquor tax returns?
  9. What should I do if filing electronically causes hardship?
  10. When are the liquor tax returns due?
  11. Is any liquor exempt from the liquor tax?
  12. Will the Wisconsin Department of Revenue (DOR) refund any liquor taxes I paid?
  13. How do I correct a liquor tax return that I already filed?
  14. If I file an incorrect liquor tax return, will I have to pay interest or penalties?
  15. Should I notify DOR if the business has a change to its name, address, or ownership or if the business ceases operating in Wisconsin?
  16. What records should I keep for Wisconsin tax purposes, and how long should I keep them?
  17. Can individuals bring liquor into Wisconsin?
  18. How can I get additional information or forms about the liquor tax?
  1. What are the definitions of "distilled spirits," "wine," "cider," "liquor," "person" and "permittee?
    • Distilled Spirits - Any beverage (except beer) made by a distillation process from agricultural grains, fruits and sugars, containing 0.5% or more of alcohol by volume [sec. 125.02(8), Wis. Stats.]. For example, beverages sold under the name of whiskey, brandy, gin, rum, cordials.
    • Wine -Any beverage (except beer) made by a fermentation process from agricultural products, fruits and sugars, containing 0.5% or more of alcohol by volume [sec. 125.02(22), Wis. Stats.]. For example, beverages sold under the name of wine, vermouth, sake. It includes cider containing more than 7% alcohol by volume.
    • Cider - Any beverage obtained from the fermentation of the juice of apples, containing not less than 0.5% alcohol by volume and not more than 7% alcohol by volume [sec. 139.01(2m), Wis. Stats.]. Cider can be flavored, sparkling or carbonated. The definition of cider is effective July 1, 1998, per 1997 Wis. Act 136. Cider containing more than 7% alcohol by volume is taxed as wine.
    • Liquor - This term includes distilled spirits, cider and wine.
    • 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 liquor
    Tax Type Statute Occupational tax per liter Administrative
    fee per liter
    Distilled Spirits secs. 139.03(2m) 139.06(1)(a), Wis. Stats. 85.86¢ 2.906¢
    Wine (includes cider containing more than 7% alcohol by volume)

    • 14% or less of alcohol by volume
    • More than 14% alcohol by volume but no more than 21%
    		 sec. 139.03(2n)
    6.605¢

    11.89¢
    		  

    Cider -7% or less alcohol by volume

    (Note: if more than 7%, see Wine above)

    		 sec. 139.03(2n), effective July 1, 1998 1.71¢  
  3. When is there an inventory tax?

    When a liquor tax rate increases, an inventory tax is imposed on all liquor permittees and retailers who are in possession of any liquor held for resale on which tax has been imposed [sec. 139.03(2x), Wis. Stats.].

    • The inventory tax is the amount by which the liquor tax increases.
    • The tax return is due the 15th day of the month following the month the new tax rate becomes effective. Example: If the tax rate becomes effective in October, the tax return is due by November 15.
    • If you file your return late, you will be charged a $10 late-filing fee and delinquent interest of 1.5% per month on the tax due. If you evaded or tried to evade tax you owe, we may charge a penalty in an amount equal to the tax you owe.
    • If the tax rate decreases, you may receive a refund.
  4. Do I need a license or permit to handle liquor?

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

    • 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 get a beverage permit or license from DOR, you must contact your municipal clerk to see if there are any licenses you need from your municipality.
  5. What types of licenses and permits do I need?
    • Retail licenses

      If you would like to sell alcohol beverages, a Wisconsin municipality (towns, villages and cities) subject to state law, would normally issue you a retail license.
    • Permits

      If you would like to deal in liquor 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.

      To apply for a BTR Certificate and a beverage permit:
      • Call 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 for every two years for $10.

    Note: The BTR certificate and beverage 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 wholesale liquor permits

    Types of Wholesale Permits/Prefix Statute Fee Term of Permit
    Wisconsin liquor wholesaler (311) sec. 125.54 $1,000 2 years
    Wisconsin manufacturer (312) sec. 125.52 $1,000 2 years
    Wisconsin rectifier (313) sec. 125.52 $1,000 2 years
    Wisconsin winery (WWI)
    (includes cider producers in Wisconsin) (315)    		 sec. 125.53 $200 2 years
    Wisconsin public warehouse (306) sec. 125.19 $200 2 years
    Wisconsin Direct Shipper (321) sec. 125.535 $200 2 years
    Wisconsin limited manufacturer (310) sec. 125.52 none 2 years
    Industrial wine (302) sec. 125.63 none 2 years
    Industrial alcohol (300) sec. 125.62 none 2 years
    Out-of-state shipper (305) sec. 125.58 $500 2 years
    Sacramental wine (307) sec. 125.56 none permanent
    Medicinal alcohol (303) sec. 125.61 none permanent
    Out-of-state and Wisconsin liquor salespersons sec. 125.65 none 2 years

    DOR issues these retail liquor permits

    Types of Retail Permits/Prefix Statute Fee Term of Permit
    Sports club - liquor (318) sec. 125.51 $600 2 years
    Vessel - liquor (317) sec. 125.51 $600 2 years
    Public facilities and airports (316) sec. 125.51 $600 2 years

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

    Security required

    • Persons who are responsible for paying the liquor 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 liquor tax but not less than $1,000 or more than $100,000 [sec. 139.06(2)(b), Wis. Stats.].

    Revocation of permits

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

    The following permittees pay DOR the liquor tax:

    • Wisconsin wholesalers who imports spirits or wine from a foreign country
    • Out-of-state shippers who ship spirits or wine into Wisconsin from other states
    • Wisconsin manufacturers who bottle or produce spirits or wine in Wisconsin
    • Wine direct shippers who ship wine directly to consumers in Wisconsin
      Wine [sec. 139.06(2)(a), Wis. Stats.]

    Distilled spirits [sec. 139.06(1)(b), Wis. Stats.]; Wine [sec. 139.06(2)(a), Wis. Stats.]

    Note: Airports and public facilities, sports club, and vessel permit holders

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

  7. How do I pay the liquor tax?
    Tax Type WI Statute Return Type Tax Form
    • Distilled spirits (plus fee)
    • Cider
    • Wine
    		 sec. 139.06(1c) Monthly Form AB-130
    • Wine Direct Shippers
    		 sec. 139.035 Quarterly Form AB-130
    • Wine Direct Shippers are also required to file sales and use tax returns. For more information on filing sales and use tax returns, visit the Sales and Use Tax page or contact us at (608) 266-2776.

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

  8. How do I file my liquor tax return?

    You are required to file all intoxicating liquor tax returns electronically. You may file using My Tax Account or xml schema.

    For more information on:

  9. 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 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.
  10. When are the liquor tax returns due?

    All liquor tax returns are due by the 15th day of the month following the month covered by the return [secs. 139.06(1)(a) and 139.06(2)(a), Wis. Stats.]. Example: a return for October is due November 15.

    Wine direct shippers quarterly tax returns are due the 15th day of the month following the end of the quarter covered by the return [sec.139.035, Wis. Stats.]. The quarters are January to March, April to June, July to September, and October to December.
    Example: a return for the quarter January to March is due April 15.

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

    • Late-filing fee - $10 [sec. 139.25(2), Wis. Stats.].
    • Delinquent interest - 1.5% of the amount of tax due with the return per month until paid [sec. 139.25(2), Wis. Stats.].
    • Late-filing penalty - 5% of the amount of tax due with the return per month, until paid [sec. 139.25(4), Wis. Stats.].

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

  11. Is any liquor exempt from the liquor tax?

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

    • Homemade wine that is not sold or offered for sale.
    • Homemade wine 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 wine at these events.
    • Homemade wine that is produced at a home brewer's/home winemaker's supply store.  The wine 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 wine, provided the total quantity of wine 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 wine means wine made by a person's own efforts and not for a commercial purpose, but does not require that the wine be made in the person's home.

    • Liquor shipped to other states or foreign countries.
    • Sale and Use of wine for sacramental purposes.
    • Liquor sold to industrial permittees for use in food items.
    • Liquor sold to hospitals for medicinal purposes.
  12. Will the Wisconsin Department of Revenue (DOR) refund any liquor taxes I paid?

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

    • The liquor is spoiled or unfit for consumption - File Form AB-605 [sec. 139.10, Wis. Stats.]
    • You supplied liquor to hospitals for medicinal purposes or to institutions of learning or museums for nonbeverage purposes [sec. 139.10, Wis. Stats.]
    • Liquor shipped to wholesalers outside Wisconsin - Send a letter including invoices [sec. 139.04(5), Wis. Stats.]
    • You sold wine for sacramental purposes [sec. 139.04(6), Wis. Stats.]
  13. How do I correct a liquor tax return that I already filed?
    • You must electronically file an amended return. You are required to electronically file all intoxicating liquor tax reports, returns and amended returns, with us (see question #6).
    • If you are filing an amended liquor 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.
  14. If I file an incorrect liquor tax return, will I have to pay interest or penalties?

    Yes. If you file an incorrect liquor 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 liquor tax [sec. 139.25(5), Wis. Stats.].
  15. Should I notify DOR if the business has a change to its name, address, or ownership or if the business stops operating 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 liquor tax permit, contact us at (608) 266-6701.
  16. What records should I keep for Wisconsin tax purposes, and how long should I keep them?
    • You must keep a complete copy of your liquor 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.
  17. Can individuals bring liquor into Wisconsin?

    No. By state law, you may not bring any liquor (distilled spirits or wine) into Wisconsin, unless you hold a valid liquor permit issued by DOR. However, the law has three exceptions for individuals that are not available to businesses [sec. 139.03(5), Wis. Stats.].

    Exceptions for individuals:

    1. Individuals who change their domicile and move into Wisconsin from another state or foreign country may bring liquor into Wisconsin without a permit from DOR or without paying the Wisconsin liquor tax, provided the liquor is part of their household goods.
    2. Individuals who have been in a foreign country for at least 48 hours may bring into Wisconsin no more than four liters of liquor in sealed original containers without payment of the Wisconsin liquor tax. The liquor must be in that individual's immediate possession and may not be sent, shipped or carried into Wisconsin in some other manner.
    3. An active duty member of the military who has been out of the country for duty or training for at least 48 hours may bring into Wisconsin no more than 16 liters of liquor in sealed original containers without payment of the Wisconsin liquor tax. The liquor must be in that individual's immediate possession and may not be sent, shipped or carried into Wisconsin in some other manner. [Law is effective October 1, 2001.]

    Note: We will take any liquor from a person or individual who violates the law. That person or individual may be subject to monetary penalties and possible imprisonment.

  18. How can I get additional information or forms about the liquor 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