Pennsylvania:How to Stay DtC Compliant & Expand your Business
In 2017, Pennsylvania was responsible for $57 million in DtC wine purchases, making it the 11th-largest DtC wine market in the country. This is a an emerging market for wine shippers, as the state only passed direct-to-consumer legislation in 2016. Nevertheless, there were strong results in its first full year of DtC wine shipping. Here’s what you need to know to 1) become compliant, 2) stay compliant or 3) expand your business in Pennsylvania.
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The first step in expanding any DtC business in Pennsylvania is becoming compliant with the many rules and regulations required there. Below is a list of what to watch out for.
Wineries are limited to shipping no more than 36 cases per individual per calendar year.
Wineries should collect data on each sale made, including purchaser and recipient information and the contents of each package shipped. These data should be retained in case of audit, and must be regularly reported to the state.
Pennsylvania requires, as a condition of holding a DtC license in the state, that a winery verify the age of the purchaser of a DtC wine order at the time of the order. However, the PLCB has delayed enforcement of this rule until December 31, 2018, so the state can determine the exact methods that a winery would need to follow when conducting age verifications.
All packages containing wine must be clearly labeled, “CONTAINS ALCOHOL: SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR DELIVERY.”
Excise Tax: $2.50 per gallon on all wine
Sales Tax: 6% + local rates for sales made to the Philadelphia or Alleghany tax districts. The Johnstown Flood Tax does not apply to DtC sales
The second step in expanding your business is staying compliant. Ensure you are able to continue shipping DtC in Pennsylvania by following the guidelines below.
Excise Tax: Direct Wine Shipper Tax Return, due quarterly
Sales Tax: Pennsylvania SUT Return
Order-by-order data, including purchaser, recipient, and package contents information must be reported quarterly. The PLCB requires that two separate reports be filed: A state-wide report on total amounts shipped, and a zip code-specific report on wine brands sold in that locality.
Expanding Your Business
As the tenth-largest driver of sales among the 45 states that permit DtC wine sales and one of the fastest-growing markets in the country, Pennsylvania is prime real estate for wine sellers who are able to follow the regulations effectively.
All wineries making DtC sales to Pennsylvania residents must first receive a Direct Wine Shipper License. The license costs $250 and must be renewed annually.
Wineries are limited to selling DtC only wines that they produce.
Get In Touch with a DtC Expert
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DOR Contact Info
Pennsylvania Liquor Control Board
Northwest Office Building
Harrisburg, PA 17124
Phone: (717) 783-7637
Fax: (717) 787-8820