Ohio direct-to-consumer (DTC) wine shipping rules and regulations

DTC License Required: Yes

License Type: S-1 License (annual production volume less than 250,000 gallons annually) or S-2 (annual production volume of 250,000 gallons or more annually)

License Fee: $25 + $100 one-time fee (S-1) or $250 + $100 one-time fee and a $100 annual renewal fee (S-2)

License Expiration: October 1 of each year

License Bond: No

State Sales Tax: Yes

State Sales Tax Rate: 5.75%

Local Sales Tax: Yes

Local Sales Tax Range: 0%–2.25%

Sales Tax on Shipping: Yes

Wine: $0.30–$1.48/gal

Grape Fund: $0.02/gal Grape Fund

Cuyahoga County Wine Tax: $0.32/gal

Consumer Limit: 24 cases per household for combined on-site and off-site sales

Per State Aggregate: Unlimited

Sales and Use Tax: Semiannually by the 23rd

Excise Tax: Annually by January 18

Cuyahoga County Wine Tax: Annually by January 31

Direct Shipment: Within 60 days after the end of the year

Record Retention: At least 3 years

Product Restrictions: Only wines produced by the permittee may be sold and shipped to consumers.

Product Registration: Labels approved for wholesale distribution are approved for direct-to-consumer sales.

Registration Fees: $50 per label

Product Requirements: Label outside of boxes with the phrase “Contains alcohol: Signature of person 21 years of age 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.