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

DTC License Required: Yes

License Type: DTC Permit

License Fee: $100

License Expiration: December 31 of each year

License Bond: Bond or waiver required

State Sales Tax: No

Local Sales Tax: No

Sales Tax on Shipping: No

Privilege Tax: $0.67–$0.77/gal

Consumer Limit: 5 cases per person per month

Per State Aggregate: Unlimited

Sales and Use Tax: N/A

Excise Tax: Quarterly due by the 20th

Direct Shipment: N/A

Record Retention: At least 18 months

Product Restrictions: None

Product Registration: Not required

Registration Fees: None

Product Requirements: Sales and shipments under a direct shipper permit must be made directly to a resident of Oregon in containers that are conspicuously labeled with the words: “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.