DTC License Required: Yes

License Type: DTC Permit

License Fee: $100

License Expiration: December 31 of each year

License Bond: N/A

State Sales Tax: Yes

State Sales Tax Rate: 4.500%

Local Sales Tax: Yes

Local Sales Tax Range: 0%–2%

Sales Tax on Shipping: Yes

Gallonage Tax: $0.93–$2.07/gal

Wholesale Tax: 2% of purchase price

Consumer Limit: 12 cases per person per calendar year

Per State Aggregate: Unlimited

Sales and Use Tax: Quarterly by the 20th

Excise Tax: Quarterly by the 15th

Direct Shipment: Quarterly by the 15th

Record Retention: At least 3 years

Product Restrictions: A direct shipper may only ship wine that was produced by the direct shipper in accordance with the direct shipper’s federal basic wine manufacturing permit.
Direct shippers are prohibited from selling products below the manufacturers’ cost.

Product Registration: Labels approved for wholesale distribution are also approved for direct-to-consumer sales.
Label registrations valid for one calendar year.

Registration Fees: $25 for initial brand label and $17.50 for each additional product under that brand per year

Product Requirements: A direct shipper shall label each package to be shipped in accordance with provisions and so that it conspicuously contains words indicating the package contains alcohol and that the signature of a person 21 years of age or older is required for delivery.

*Nearly all states have some kind of rule regarding how wine must be labeled when being shipped direct to consumer. Please check for the unique rule for your state.

South Dakota DOR site

Please note: Tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this page is for informational purposes only and does not provide legal or tax advice.