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.

 

Need more help? Request a demo to find out how ShipCompliant can help you navigate the complexities of selling DtC into Pennsylvania.

 

 

Step 1:
Becoming Compliant

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.

Volume Limits

Wineries are limited to shipping no more than 36 cases per individual per calendar year.

Customer Information

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.

 

Age Verification

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.

Shipping Restrictions

All packages containing wine must be clearly labeled, “CONTAINS ALCOHOL: SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR DELIVERY.”

Tax Rates

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.

Tax Reports

Excise Tax: Direct Wine Shipper Tax Return, due quarterly

Sales Tax: Pennsylvania SUT Return

Shipping Reports

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.

Step 2:
Staying Compliant

Step 3:
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.

License Required

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.

Product Limits

Wineries are limited to selling DtC only wines that they produce.

Step 4:
Get In Touch with a DtC Expert

Learn how ShipCompliant can support your expanding business, by helping you adhere to state DtC compliance requirements automatically.

DOR Contact Info

 

Pennsylvania Liquor Control Board

Northwest Office Building
Harrisburg, PA 17124
Phone: (717) 783-7637
Fax: (717) 787-8820
Website: http://www.lcb.state.pa.us/

Pennsylvania Department of Revenue

P.O. BOX 280905
Harrisburgh, PA 17128
Phone: 717-787-8327
Website: http://www.revenue.pa.gov/Pages/default.aspx

Use the map below to find out how to comply with each state's direct-to-consumer wine shipping rules.