Skip Header and Navigation

Printer-friendly version of a Department of Revenue web page. Back to Full Screen Display

Wisconsin Department of Revenue

Liquor Tax
Distilled Spirits, Cider, and Wine

  1. What definitions apply for purposes of the Wisconsin liquor tax law?
  2. What are the liquor tax rates?
  3. Who must obtain a liquor tax permit?
  4. Who pays the liquor tax?
  5. How is the liquor tax paid?
  6. Where are the liquor tax returns filed?
  7. When are the liquor tax returns due?
  8. Is any liquor exempt from the liquor tax?
  9. Who may receive a refund of liquor tax paid?
  10. How do I correct a liquor tax return that I previously filed?
  11. Am I subject to interest or penalties if I file an incorrect liquor tax return?
  12. Should I notify the Department of Revenue if the business has a change to its name, address, or ownership or if the business ceases operating in Wisconsin?
  13. How can I obtain additional information or forms relating to the liquor tax?
  14. What records should I keep for Wisconsin tax purposes, and how long should I keep them?
  15. May individuals bring liquor into Wisconsin?

  1. What definitions apply for purposes of the Wisconsin liquor tax law?

    • 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.

  2. What are the liquor tax rates?

    • Distilled Spirits [secs. 139.03(2m) and 139.06(1)(a), Wis. Stats.]:

      85.86¢ occupational tax per liter plus an administrative fee of 2.906¢ per liter.

    • Wine including cider that contains more than 7% alcohol by volume [sec. 139.03(2n), Wis. Stats.]:

      14% or less of alcohol by volume - 6.605¢ occupational tax per liter.

      More than 14% alcohol by volume but not more than 21% of alcohol by volume - 11.89¢ occupational tax per liter.

    • Cider [sec. 139.03(2n), effective July 1, 1998]:

      7% or less alcohol by volume - 1.71¢ occupational tax per liter.

      Caution: Cider that contains more than 7% of alcohol by volume is taxed at wine rates.

    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 that the new tax rate becomes effective. Late-filed returns are subject to a $10 late-filing fee and delinquent interest of 1.5% per month on the tax due. A penalty for a false or fraudulent return may be assessed and is an amount equal to the tax owing that the person evaded or attempted to evade. If the tax rate should decrease, a refund would be available.

  3. Who must obtain a liquor tax permit?

    No one may sell, manufacture, rectify, brew, or engage in any other activity relating to alcohol beverages without holding the appropriate license, permit or authorization. Persons who want to obtain a beverage permit or license from the Department of Revenue should also contact their municipal clerk to see if there are any licenses they must obtain from the municipality.

    Retail licenses to sell alcohol beverages are issued for the most part by Wisconsin municipalities (towns, villages and cities) subject to state law.

    Any person who wants to handle liquor at the wholesale level in Wisconsin must obtain a permit from the Wisconsin Department of Revenue.

    Persons who want a beverage permit must hold a Business Tax Registration (BTR) Certificate [sec. 73.03(50), Wis. Stats.]. The BTR certificate and liquor permits are issued by the Excise Tax Section in Madison, (608) 261-6435. There is a one-time $20 charge for the BTR certificate. This certificate is renewable every two years for $10. The BTR certificate and liquor permits are valid until canceled by the permittee or revoked by the Department. A person need only obtain one BTR certificate regardless of the number of permits or licenses held with the Department.

    The following wholesale permits are issued by the Department of Revenue:

    Types of Wholesale Permits/Prefix Statute Fee Term of Permit
    Wisconsin liquor wholesaler (W) sec. 125.54 $1,000 2 years
    Wisconsin manufacturer (WM) sec. 125.52 $1,000 2 years
    Wisconsin rectifier (WR) sec. 125.52 $1,000 2 years
    Wisconsin winery (WWI)
    (includes cider producers in Wisconsin)    		 sec. 125.53 $200 2 years
    Wisconsin public warehouse (PW) sec. 125.19 $200 2 years
    Wisconsin Direct Shipper (WDS) sec. 125.535 $200 2 years
    Wisconsin limited manufacturer (LM) sec. 125.52 none 2 years
    Industrial wine (IW) sec. 125.63 none 2 years
    Industrial alcohol (IAP) sec. 125.62 none 2 years
    Out-of-state shipper (FF) sec. 125.58 $500 2 years
    Sacramental wine (SWP) sec. 125.56 none permanent
    Medicinal alcohol (MAP) sec. 125.61 none permanent
    Out-of-state and Wisconsin liquor salespersons sec. 125.65 none 2 years

    The following retail liquor permits are also issued by the Department of Revenue:

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

    Permittees who purchase liquor from out-of-state wholesalers that do not hold a permit with the Department may have their liquor confiscated by the Department's Alcohol & Tobacco Enforcement Section [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 the Department. The amount of security is equal to twice the person's estimated maximum monthly liquor tax but not less than $1,000 nor more than $100,000 [sec. 139.06(2)(b), Wis. Stats.].

    Revocation of permits - It is very important that permittees file their reports timely and pay any amount owing. Permittees with poor filing and/or payment records may have their permits revoked by the Department.

  4. Who pays the liquor tax?

    The liquor tax is paid by these permittees to the Department:

    • The Wisconsin wholesaler who imports spirits or wine from a foreign country.
    • The out-of-state shipper who ships spirits or wine into Wisconsin from other states.
    • The Wisconsin manufacturer who bottles or produces spirits or wine in Wisconsin.
    • The wine direct shippers who ships wine directly to consumers in Wisconsin.

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

    Airports and public facilities, sports club, and vessel permit holders - Persons holding these retail permits are not required to file liquor tax returns with the Department. The tax on the alcohol beverages they purchase in Wisconsin is paid at the wholesale level, not at the retail level.

  5. How is the liquor tax paid?

    The distilled spirits tax (plus fee), cider and wine taxes are remitted with a monthly return, the Wisconsin Distilled Spirits, Cider and Wine Tax Return (Form AB-130) [sec. 139.06(1)(c), Wis. Stats.].

    The wine taxes for Wine Direct Shippers are remitted with a quarterly return, the Wisconsin Distilled Spirts, Cider, and Wine Tax Return (Form AB-130) [sec.139.035, Wis. Stats.]. Wine Direct Shippers are also required to file sales and use tax returns. Information about filing sales and use tax returns can be obtained from the Sales and Use Tax page found on the department's Internet Site at http://www.revenue.wi.gov/faqs/index-s.html or by calling (608) 266-2776.

    EFT tax payments - Taxes can be paid to the Department by electronic funds transfer (EFT). Information about paying by EFT can be obtained from the Electronic Funds Transfer page or by calling (608) 264-9918.

  6. How are the liquor tax returns filed?

    All intoxicating liquor tax reports and returns are required to be filed electronically with the department. Information on the electronic filing methods can be found at www.revenue.wi.gov/html/liquor.html under liquor tax. The web filing application is located at: https://ww2.revenue.wi.gov/GenericFile/application?interview=1256180.

    The Secretary of Revenue may waive the requirement to file electronically when the Secretary determines that the requirement causes an undue hardship, if the person does all of the following:

    1. Requests the waiver in writing. Written requests should be addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8949, Madison, Wisconsin 53708-8949.
    2. Clearly indicates why the requirement causes an undue hardship. In determining whether the requirement to file electronically causes an undue hardship, the Secretary of Revenue may consider the following factors:
    1. Unusual circumstances that may prevent the person from filing electronically.
      Example: The person does not have access to a computer that is connected to the internet.
    2. Any other factor that the Secretary determines is pertinent.

    If you have any questions regarding this matter, please call the department at (608) 261-6701.

    Send remittances to:

    Excise Tax Section
    Wisconsin Department of Revenue
    Mail Stop 5-107
    P.O. Box 8900
    Madison, WI 53708-8900

  7. When are the liquor tax returns due?

    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.]. For 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. For example, a return for the quarter January to March is due April 15.

    Late filed returns are subject to the following charges:

    • Late-filing fee - $10 [sec. 139.25(2), Wis. Stats.].
    • Delinquent interest - 1.5% per month [sec. 139.25(2), Wis. Stats.].
    • Late-filing penalty - 5% per month, maximum of 25% [sec. 139.25(4), Wis. Stats.].

    There are no extensions of time granted if you are unable to file a liquor tax return and pay the amount owing by the due date.

  8. Is any liquor exempt from the liquor tax?

    The Wisconsin liquor tax is not imposed upon the following [sec. 139.04, Wis. Stats.]:

    • Wine or cider made at home for consumption at home without compensation.
    • 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.

  9. Who may receive a refund of liquor tax paid?

    Liquor permittees can receive refunds from the Department of Revenue of liquor tax paid on the following:

    • Liquor which is spoiled or unfit for consumption; file Form AB-605 [sec. 139.10, Wis. Stats.].
    • Liquor supplied 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.].
    • Wine sold for sacramental purposes [sec. 139.04(6), Wis. Stats.].

  10. How do I correct a liquor tax return that I previously filed?

    All intoxicating liquor tax reports and returns, including amended returns, are required to be filed electronically with the department (see question #6).

    Send your remittance owing to:

    Excise Tax Section
    Wisconsin Department of Revenue
    Mail Stop 5-107
    P.O. Box 8900
    Madison, WI 53708-8900

  11. Am I subject to interest or penalties if I file an incorrect liquor tax return?

    The following interest and discretionary penalties may be applied when you file incorrect liquor tax returns:

    • Unpaid taxes bear interest at the rate of 12% per year [sec. 139.25(1), Wis. Stats.].
    • Refunded taxes bear interest at the rate of 9% per year [sec. 139.25(1), Wis. Stats.].
    • Negligence penalty of 25% of the tax is imposed if there is negligence in filing a return [sec. 139.25(3), Wis. Stats.].
    • Fraud penalty of 50% of the tax is imposed if there was intent to defeat or evade the liquor tax [sec. 139.25(5), Wis. Stats.].

  12. Should I notify the Department of Revenue if the business has a change to its name, address, or ownership or if the business ceases operating in Wisconsin?

    You must notify the Department of Revenue when your business has any change to its name, address, or ownership or when you cease operating in Wisconsin. You can notify the Department by letter or by attaching 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 the Department and update your security. When you cease operations, you must be sure to file a return for the last month of operations even if you were in business only a few days during that month. Call (608) 261-6435 if you have any questions about your liquor tax permit.

  13. How can I obtain additional information or forms relating to the liquor tax?

    Contact the following Department offices to receive more information or forms regarding Wisconsin's liquor taxes:

    • Registration and Security

      Wisconsin Department of Revenue
      Excise Tax Section
      Mail Stop 5-107
      P.O. Box 8900
      Madison, WI 53708-8900
      (608) 261-6435
      Fax: (608) 261-7049
      E-Mail Additional Questions

    • Filing Returns, Paying Tax, and Forms

      Wisconsin Department of Revenue
      Excise Tax Section
      Mail Stop 5-107
      P.O. Box 8900
      Madison, WI 53708-8900
      (608) 266-6702
      Fax: (608) 261-7049
      E-Mail Additional Questions

  14. 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 pertaining to your business for at least 4 years so the Department can determine how you computed your tax liabilities [secs. 139.092 and 139.11(1), Wis. Stats.]. The required records include, but are not limited to, your purchases, receipts, inventories, sales (whether taxable or exempt), distribution, and consumption of products. Your records must be kept in a place and manner easily accessible for review by Department representatives. When records are not maintained, the Department presumes that all products you purchase or receive are subject to tax without benefit of any deductions.

  15. May individuals bring liquor into Wisconsin?

    Under Wisconsin law, no person may bring any liquor (distilled spirits or wine) into Wisconsin unless that person holds a valid liquor permit issued by the Wisconsin Department of Revenue. However, the law contains the following three exceptions for individuals that are not available to businesses [sec. 139.03(5), Wis. Stats.]:

    • Individuals who change their domicile and move into Wisconsin from another state or foreign country may bring liquor into Wisconsin without a permit from the Department or payment of the Wisconsin liquor tax, providing the liquor is part of their household goods.

    • Individuals who have been in a foreign country for at least 48 hours may bring into Wisconsin no more than 4 liters of liquor in sealed original containers without payment of the Wisconsin liquor tax. In addition, the liquor must be in that individual's immediate possession and may not be sent, shipped, or carried into Wisconsin in some other manner.

    • 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.]

    Any person or individual who violates the above provisions will have the liquor confiscated and may be subject to monetary penalties and possible imprisonment.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Excise Tax Section
Mail Stop 5-107
P.O. Box 8900
Madison, WI 53708-8900
Phone: (608) 266-6702
Fax: (608) 261-7049
E-Mail Additional Questions

Last updated November 6, 2009