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

DTC License Required: Yes

License Type: DTC Permit

License Fee: $300, $150 for subsequent renewals

License Expiration: One year from issue date

License Bond: No

State Use Tax: Yes

State Use Tax Rate: 4.5%

Local Sales Tax: Yes

Local Sales Tax Range: 0%–7%

Sales Tax on Shipping: No

Direct Shipper to Oklahoma Consumer Excise Tax: $0.19–$0.55/L

Consumer Limit: 6 cases per person per year

Per State Aggregate: Unlimited

Sales and Use Tax: Annually by January 20

Excise Tax: Annually by January 20

Direct Shipment: Annually by February 15

Record Retention: At least 3 years

Product Restrictions: None

Product Registration: Not required

Registration Fees: None

Product Requirements: Direct shippers must file an annual direct shipment report with the ABLE Commission.

Direct shippers shall ensure that all packages containing wine shipped directly to a consumer in Oklahoma are conspicuously labeled with the words “Contains alcohol: Signature of person 21 years of age or older required for delivery” or are conspicuously labeled with alternative wording preapproved by the ABLE Commission.

Wineries are required to ship wine to consumers from their own licensed premise. Shipping from distribution warehouses is not permitted.

*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.