Oklahoma OKs DTC Wine Shipping Applications in Advance of 10/1 Start Date
August 1, 2018
By Kristin Carlton, Vice President of Compliance
The long wait for Oklahoma DTC wine shipping is nearly over. On October 1st, 2018, Oklahoma will be the 45th state to allow direct shipments of wine to consumers. Wineries that want to hit the ground running on October 1st can now apply, as the Oklahoma ABLE Commission just released the Direct Wine Shipper Permit Application on their website.
The following rules will apply to Direct Wine Shippers:
- Wineries will be legally able to ship up to 6 nine liter cases per consumer, per year.
- The consumer must be at least 21 years old and the consumer must verify at time of purchase and receipt that they are of legal age.
- Wineries must also ensure that all containers of wine shipped directly to a resident in this state are conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.”
- In order to ship directly to Oklahoma consumers, wineries must first obtain a sales tax permit with the Oklahoma Tax Division. The fee for the sales permit is $20, plus a $2.00 convenience fee and a 2.25% transaction fee and the processing time is a minimum of 5 business days. The sales tax permit must be renewed every three years.
- The fee for the Direct Shippers Permit is $300 for the first application and $150 for each subsequent renewal. The application requires detailed ownership, officer, director, shareholder and trustee information. As of this writing there is no specific direction from the Commission into how many “levels” of ownership are required to complete the questionnaire portion of the application; however Compli and other industry representatives have requested further information on application specifics. A copy of a certificate of good standing from the state is which you hold your winery permit is required, along with a copy of your current winery license from California and the TTB.
- Direct Ship Permittees are required to collect and remit sales taxes and pay excise taxes, both payable to the Oklahoma Tax Division.
- An annual direct shipment report must also be filed with the ABLE Commission.
- Sales taxes are due annually on the 20th day of January for sales made in the previous year and must be filed electronically.
- The previous federal on-site law is discontinued, so only holders of the Direct Wine Shipper permit can make shipments effective October 1st.
- Common Carriers (FedEx and UPS) will be required to submit quarterly reports of shipments made to Oklahoma consumers
For more information on Oklahoma, check out the Oklahoma page on the DTC Wine Compliance Rules Portal. We’ll also post more information on this blog as we learn additional details on the application process.
Wineries can apply for the permit via the online portal. Please note that the first date of business should be listed as October 1st, 2018. After the sales tax permit is obtained from the OK Tax Division, a winery can then submit a Direct Wine Shippers Permit Application with the Oklahoma ABLE Commission.
Compli customers can either request the new Oklahoma license using eCompli (available now), or simply notify their Customer Success Manager that they want us to file the application forms!