Arkansas alcohol tax permits and rules

DTC License: Wine Shipping Permit

License Fee: $25

License Expiration: June 30

License Bond: No

License Notes: On-site only

State Sales Tax: Yes

State Sales Tax Rate: 6.500%

Local Sales Tax: Yes

Local Sales Tax Range: 0%–5%

Sales Tax on Shipping: Yes

Wine Excise Tax: $0.25–$0.75/gal

Liquor Sales Tax: 3.000%

Per Case Wine Excise Tax: $0.05/case

Notes: On-site shipments only. Arkansas has a per case tax in addition to its per gallon excise tax.

Consumer Limit: 1 case of wine may be purchased and shipped on-site in any calendar quarter to an Arkansas consumer.

Per State Aggregate: Unlimited

Excise Tax Return for Vendor Use Tax: Returns due the 20th of the month following the close of filing period.

Wine Excise Tax: Monthly on the 20th

Record Retention: N/A

Product Restrictions: N/A

Product Registration: N/A

Registration Fees: N/A

Product Requirements: Act 483 requires each shipment to have a shipping label provided by the Arkansas ABC. Alcohol-specific shipping labels provided by FedEx and UPS may be used in lieu of obtaining a label from the ABC.

*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.

Arkansas 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.