Liquor

Every licensed wholesaler or person doing business in South Carolina engaging in the business of selling alcoholic liquors is required to make a report of all alcoholic liquors offered for sale within South Carolina, pay a License Tax and pay Excise Tax. In addition to any and all other taxes or licenses, there is a tax levied and collected on all alcoholic liquors offered for sale in South Carolina. Every person subject to the tax is required to file the Liquor Wholesalers Monthly Report electronically on MyDORWAY.

Distilleries

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 for more information.)