Arkansas eliminates on-site rule for DTC wine shipping

Arkansas is removing its on-site purchase requirement for direct wine shipping, allowing residents to take advantage of online wine sales and wine clubs. Here’s what wine shippers need to know about Arkansas direct-to-consumer (DTC) wine shipping laws.

Prior to the enactment of HB 1476 in April 2025, direct wine shipments to Arkansas consumers were allowed only if the purchaser ordered the wine while visiting a winery’s premises, and only if the winery held an Arkansas direct wine shipping permit. Mail orders, online orders, fax orders, and telephone orders were prohibited.

HB 1476 eliminates the on-site requirement, allowing DTC wine shipping in Arkansas. The bill takes effect in mid-July. However, the Alcoholic Beverage Control Division (ABCD) of the Arkansas Department of Finance and Administration has 180 days after the law’s effective date to finalize rules.

To ship wine DTC to Arkansas, a winery, supplier, or importer must hold an Arkansas wine direct shipper license and comply with all DTC wine shipping requirements.

The cost for an Arkansas wine direct shipper license is $50. Licenses expire annually on June 30. According to the Arkansas Department of Finance and Administration, permits must be renewed prior to June 30 to remain valid and avoid late renewal fees. There is a $25 renewal fee.

The ABCD processes applications for Arkansas alcoholic beverage licenses. 

All wine shipped directly to consumers in Arkansas must be registered with the ABCD. The winery, supplier, or importer must provide an Alcohol and Tobacco Tax and Trade Bureau Certificate of Label Approval (COLA) for the following:

• Each brand of vinous liquor
• Each brand label extension of vinous liquor to be shipped for the first time by the wine direct shipper licensee into or within the state

There are dry, damp, and wet counties in Arkansas.

• Dry: The retail sale and manufacture of alcoholic beverages is not legal.
• Damp: The retail sale and manufacture of certain types of alcoholic beverages is permitted under certain conditions.
• Wet: The retail sale and manufacture of alcoholic beverages is legal.

Direct wine shipments are permitted in wet counties but not dry counties. Certain damp counties may allow DTC wine shipping.

Which counties in Arkansas are dry?

There is a map of dry, damp, and wet counties on the ABCD website.

Direct wine shipper licensees are allowed to ship 24 cases per year to any one consumer.

Direct wine shippers must ensure consumers are at least 21 years of age. The holder of a direct wine shipper’s license must not ship wine to an underage consumer.

Wine shipments must be conspicuously labeled with “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”

Direct wine shipments are subject to the following Arkansas taxes:

• State sales tax (6.5%)
• Applicable local sales taxes (0%–5%)
• Liquor sales tax (3%)
• Per gallon wine excise tax ($0.75)
• Per case sold tax ($0.05)

Taxes should be sourced to the delivery address and reported “as directed” by the Department of Finance and Administration. The department has yet to publish detailed tax reporting requirements.

In-state and out-of-state licensees may face different reporting requirements.

A wine direct shipper licensee located outside of the state must submit annual reports to the Alcoholic Beverage Control Division detailing the amount of vinous liquor shipped into the state during the preceding calendar year. 

A wine direct shipper licensee located inside the state must give the division any information requested to ensure compliance. Furthermore, the licensee must permit the Arkansas Department of Finance and Administration or Alcohol Beverage Control Division to perform an audit of the records upon request.

As the department is particularly interested in ensuring alcoholic beverages aren’t delivered to any dry counties, wine shippers must submit quarterly reports confirming shipments are made only to wet or damp counties that allow direct wine shipments.

Penalties include a written notice for the first violation, a $500 fine for the second violation, and a $1,000 fine for the third violation. Additional violations may result in higher fines (up to $5,000) and suspension of the wine direct shipper license.

Avalara for Beverage Alcohol can help businesses comply with Arkansas DTC wine compliance requirements for licensing, product registrations, tax calculation, and returns. Contact us for more information.