Montana alcohol tax permits and rules

DTC License Required: Yes

License Type: DTC Endorsement

License Fee: $50

License Expiration: September 30 of each year

License Bond: No

State Sales Tax: No

Local Sales Tax: No

Sales Tax on Shipping: No

Winery Tax: $0.27/L

Consumer Limit: Limit of 18 cases per person per year

Per State Aggregate: Unlimited

Sales and Use Tax: N/A

Excise Tax: Monthly by the 15th if more than 1,000 liters shipped, annually by October 15 if less than 1,000 liters shipped

Direct Shipment: Monthly by the 15th if more than 1,000 liters shipped, annually by October 15 if less than 1,000 liters shipped

Record Retention: At least 3 years

Product Restrictions: Direct shipment of wine over 16% ABV prohibited.

Product Registration: Submit copies of federal label approvals for any brands not currently distributed by a Montana wholesaler that will be sold and shipped to consumers in Montana.

Registration Fees: None

Product Requirements: A shipment of table wine must be conspicuously labeled with the words “Contains Alcohol: Signature of Person Age 21 or Older 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.

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.

Montana 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.