Michigan alcohol tax permits and rules

DTC License Required: Yes

License Type: DTC Permit

License Fee: $100, plus one-time $70 inspection fee

License Expiration: April 30 of each year

License Bond: No

State Sales Tax: Yes

State Sales Tax Rate: 6.000%

Local Sales Tax: No

Sales Tax on Shipping: Yes

Wine Tax: $0.135–$0.20/L

Consumer Limit: Unlimited

Per State Aggregate: Total wine shipped from a winery to all Michigan consumers cannot exceed 1,500 cases.

Sales and Use Tax: Quarterly by the 20th

Excise Tax: Quarterly by the 15th

Record Retention: At least 4 years

Product Restrictions: Only wines produced and bottled or that is manufactured by a wine maker for another wine maker by the permittee may be sold and shipped to consumers.

Product Registration: Yes; Note - labels approved for wholesale distribution are also approved for direct-to-consumer sales.

Registration Fees: N/A

Product Requirements: A stamp, print, or label must be on the outside of the shipping container to indicate that the package “Contains Alcohol. Must be delivered to a person 21 years of age or older.” The recipient at the time of the delivery shall provide photo identification verifying recipient's age and sign for the 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.

Tax can get complicated when it comes to direct-to-consumer (DTC) shipments. The beverage alcohol industry is different from other industries in that licensed alcohol shippers are required to register for sales tax in most states, independent of economic or physical nexus.

Depending on the state, sales and use tax can be applied at the state, county, city, or special district levels. Address accuracy is important to determine if a location falls into an incorporated or unincorporated section of a county or a special district.

On top of the sales tax requirements, alcohol taxes also apply to DTC shipments. Several states have “markup” taxes, where the retail value of the alcohol is multiplied by a percentage rate. Most of these markup taxes are either required or can be passed through to the consumer. 

Traditional “gallonage”-based excise taxes are also usually due on DTC shipments. Most of the time these are factored into the price of the item and not passed through to the consumer. In a few cases, these excise taxes are required to be passed on to the consumer.

Rules and regulations for your winery, brewery, or other beverage alcohol business change frequently. Avalara for Beverage Alcohol helps distill the beverage alcohol compliance process so you can focus on your business.

Michigan 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.