Wines Shipped Direct to Louisiana Consumers
Who Must File?
Any out-of-state wine producer, manufacturer, or retailer who sells and ships directly to a consumer in Louisiana.
Requirements for Direct Shipments of Wines to Louisiana Consumers
For the purposes of making direct shipments of wines into Louisiana, below are the applicable definitions as found in Louisiana Revised Statutes, Title 26:
"Manufacturer" means any person, other than a wine producer, who personally or through any agent whatever engages in the making, blending, rectifying, or processing of any alcoholic beverage in Louisiana; engages in the making, blending, rectifying, or processing of any alcoholic beverage outside of Louisiana for sale in Louisiana; or engages in the business of supplying alcoholic beverages to licensed wholesale dealers in Louisiana.
"Retail dealer" means every person who offers for sale, exposes for sale, has in his possession for sale or distribution, or sells alcoholic beverages in any quantity to persons other than licensed wholesale or retail dealers.
"Wine producer" means any person who, directly or indirectly, personally or through any agency, cultivates and grows grapes, fruits, berries, honey, or vegetables from which wine of an alcoholic content in excess of six percent by volume is produced and bottled from a fermentation of such grapes, fruits, berries, honey, or vegetables in Louisiana or outside the state for shipments to licensed wholesale dealers within the state subject to the provisions of La. R.S. 26:364.
In order to direct ship sparkling wines or still wines to Louisiana consumers, ALL of the following conditions must be met:
- The seller or shipper who is a wine producer or manufacturer must not be a party to any direct or indirect agreement with a Louisiana wholesale dealer that grants the wholesale dealer the right to purchase and sell the same brand of sparkling wine or still wine produced by the wine producer or manufacturer that is to be shipped direct to the consumer. This prohibition does not include any sale of sparkling wine or still wine if the sale is perfected when the Louisiana consumer is physically present on the premises of the wine producer or manufacturer and completed by shipment to the consumer in Louisiana, or when the wine bears a properly registered label that is not assigned by the wine producer or manufacturer to a wholesaler licensed in Louisiana for sale by such wholesaler.
- The required annual fee must have been paid, and written authorization to make direct shipments must have been granted by the Louisiana Department of Revenue, prior to selling or shipping any wine to a consumer in the state of Louisiana. The seller or shipper must also apply for an annual permit with the Office of Alcohol and Tobacco Control (ATC) www.atc.rev.state.la.us, and the required annual fee must be paid prior to making direct shipments of sparkling wine and still wine.
- The wine producer, manufacturer, or retailer making direct shipments to Louisiana consumers must hold a valid license issued by its state of domicile. A copy of that license must be provided with Form R-8695, Application for Authority to Make Direct Shipments of Wines to Louisiana Consumers.
- The sparkling wine or still wine must be for the consumer’s personal consumption.
- The consumer must be 21 years of age or older.
- All packages in which sparkling wine or still wine is shipped must be received by a person 21 years of age or older.
- The total amount of sparkling wine or still wine shipped in seven-hundred-fifty milliliter bottles does not exceed one-hundred-forty-four bottles per calendar year per adult person at the household address.
- The package in which the sparkling wine or still wine is shipped must be prominently labeled as containing beverage alcohol.
- Each package in which the sparkling wine or still wine is shipped must contain an invoice indicating the date of shipment, and it must give a full and complete description of all items included in the shipment, including price.
- All excise and sales and use taxes imposed by the State of Louisiana on sparkling wine or still wine shipped direct to Louisiana consumers must be paid by a company check drawn on an account in the name of the permit holder and remitted with the required tax returns, Form R-5696, the Louisiana Tax Return for Wines Shipped Directly to Consumers and Form R-1029, the Louisiana Sales Tax Return. Alternatively, payment may be made by electronic funds transfer at the time of the filing of the required return. Those authorized to make direct shipments to Louisiana consumers must file and report the quantity and type of products shipped within the month and remit the applicable taxes on or before the 20th of the following month. Copies of the invoices should be retained by the authorized party for inspection upon request of the Secretary.
The annual fee for out-of-state wine producers and manufacturers is $150, and the fee for out-of-state retailers is $1,000.
Rate of Tax
Wines shipped into Louisiana are taxed at the following rates:
- Sparkling wines - $0.55 per liter
- Still wines with more than 24% alcohol content - report with sparkling wines at $0.55 per liter
- Still wines with over 14% and up to 24% alcohol content - $0.35 per liter
- Still wines with 14% and under alcohol content - $0.20 per liter
Follow the line instructions on the face of the return to calculate the total tax due.
Tax Due Date
The returns are due by the 20th of the month following the month being reported. If the due date falls on a weekend or holiday, the return is due by the next business day.
If the return is not filed by the 20th of the following month, it will be considered late, and one of the following penalties must be entered on Line 9 of the tax return:
- If the return is late 10 days or less: 5% of the total tax due reported on Line 8.
- If the return is late by more than 10 days: 20% of the total tax due reported on Line 8.
Form R-5696, Louisiana Tax Return for Wines Shipped Directly to Consumers, must be filed each month even if no direct shipments to consumers are made during the reporting period.
Complete Form R-5697, Schedule 1, Sparkling Wines Shipped Direct to Louisiana Consumers and Form R-5698, Schedule 2, Still Wines Shipped Direct to Louisiana Consumers, before completing the tax return. Transfer totals from the schedules to the tax return. These schedules may be found on the Departments website at www.revenue.louisiana.gov/Forms/ForBusinesses.
Schedule 1 is for shipments of sparkling wines and wines having an alcohol content of greater than 24% by volume. Use as many sheets as necessary. A computer printout showing all of the same information required on the schedule may be substituted. Copies of all invoices must be attached.
Schedule 2 is for reporting still wines shipped into Louisiana. A separate schedule must be prepared for still wines containing an alcohol content of greater than 14% up to 24% and still wines with an alcohol content of 14% and under. Use as many pages as necessary. A computer printout showing all of the same information required on the schedule may be substituted. Copies of all invoices must be attached.
How to Get Started
- Complete Form R-8695, Application for Authority to Make Direct Shipments of Wines to Louisiana Consumer. The form can be found on the Departments website at http://revenue.louisiana.gov/Forms/ForBusinesses. Complete an Application for Authority to Make Direct Shipments of Wines to Louisiana Consumers, form.
- Send the completed application along with your annual fee to: Louisiana Department of Revenue, Taxpayer Compliance – Excise Taxes, PO Box 201, Baton Rouge, LA 70821-0201. A copy of the license issued in your state of domicile must also be mailed or faxed to the Department: Fax (225) 231-6236.
- Log into the Louisiana Taxpayer Access Point (LaTap) https://latap.revenue.louisiana.gov and register for a Louisiana Sales Tax Account.
- Contact the Office of Alcohol and Tobacco Control (ATC) at www.atc.rev.state.la.us and apply for a permit.
Each month, you will be mailed Form R-5696, Louisiana Tax Return for Wines Shipped Direct to Consumers. This return must be completed and mailed to the Louisiana Department of Revenue, PO Box 201, Baton Rouge, LA 70821 each month, even if no direct shipments to consumers are made during the reporting period. If you have questions pertaining to the direct shipped sparkling and still wine tax, please contact us at firstname.lastname@example.org or (855) 307-3893.
In addition, Form R-1029, Louisiana Sales Tax Return, must be filed for each reporting period. Please file the Louisiana Sales Tax Returns electronically using the Louisiana Taxpayer Access Point (LaTap) or mail to: Louisiana Department of Revenue, PO Box 201, Baton Rouge, LA 70821. If you have questions pertaining to sales tax, please contact us at Sales.email@example.com or (855) 307-3893.