Sales to retail customers

Micro-distilleries and liquor manufacturers with the required ABL licenses may make sales for on- or off-premises consumption to retail customers. Micro-distilleries and liquor manufacturers must pay Liquor Excise Tax on all liquor that is manufactured on-premises and sold to individual customers for on- or off-premises consumption. These Liquor Excise Taxes must be reported on the micro-distillery’s or liquor manufacturer’s Liquor Wholesalers Monthly Report.

Sales to wholesalers and distributors

Micro-distilleries and liquor manufacturers should not include liquor that is sold to a licensed wholesaler or distributor on their Liquor Wholesalers Monthly Report. Wholesalers and distributors are responsible for paying Liquor Excise Tax on liquor purchased from micro-distilleries and liquor manufacturers. Micro-distilleries and liquor manufacturers should keep records to differentiate liquor sold to retail customers and liquor sold to wholesalers and distributors.

Tastings 

Micro-distilleries and liquor manufacturers with the required ABL licenses may offer customers tastings in conjunction with a tour of their licensed premises. Effective May 17, 2021, distilleries should not pay Liquor by the Drink Tax on liquor used for tastings. The cost of the tour should reflect the amount of alcohol offered for the tasting; the base price should equal the cost of one ounce of alcohol and increase in half-ounce increments. See Revenue Ruling #22-1.