Changeflow GovPing Tax South Dakota Alcohol Sales Tax, Licensing, and ...

Priority review Guidance Added Final

South Dakota Alcohol Sales Tax, Licensing, and Shipping Guidance

dor.sd.gov

Detected March 17th, 2026

Summary

The South Dakota Department of Revenue has issued guidance on alcohol sales tax, licensing, and shipping requirements for businesses. This includes details on carrier licenses, direct wine shipper licenses, tax collection, and brand label registration.

View original document View source feed page

What changed

The South Dakota Department of Revenue has updated its guidance concerning alcohol sales tax, licensing, and shipping. Key areas covered include requirements for carrier licenses (fee $100), direct wine shipper licenses (annual fee $100), and the collection of state and municipal sales taxes on wine shipments. The guidance also outlines brand label registration requirements prior to offering alcoholic beverages for sale.

Businesses involved in transporting or shipping alcohol within South Dakota must review these updated requirements to ensure compliance. This includes obtaining the necessary licenses, correctly calculating and remitting sales taxes based on the customer's shipping address, and registering all alcoholic beverage products before they can be sold. Failure to comply may result in penalties or inability to conduct business within the state.

What to do next

Review carrier license requirements and apply if applicable.
Obtain a direct wine shipper license and sales tax license if shipping wine to South Dakota consumers.
Ensure correct collection and remittance of state and municipal sales taxes on all alcohol shipments.
Register all alcoholic beverage products before offering them for sale in South Dakota.

Source document (simplified)

Alcohol

Quick Navigation

Alcohol Licenses for Businesses

Direct Wine Shipping

Reporting Requirements

Brand Label Registration

Miscellaneous Items

Delivering Alcohol

Kegs

Other Alcohol Licenses

Alcohol Tax Resources

Alcohol Online Forms

Alcohol Training Programs

Manufacturer's License

Liquor Retailers & Other Liquor Licenses

Alcohol Licenses for Businesses

Carriers Alcohol Licensing

Any business or person who transports persons for a fee on any means of conveyance (such as limousine services, airlines, tour buses) and wishes to sell or furnish alcohol needs a carrier license. The carrier license fee is $100, payable to the South Dakota Department of Revenue.

Requirements

A licensed carrier may allow a passenger to bring sealed and unopened alcoholic beverages purchased from a South Dakota retailer, aboard the vehicle for consumption.
All alcohol provided by the carrier to its passengers must be purchased directly from a licensed wholesaler.
The driver of the carrier must be at least 21 years of age.
Hours of operation are between 7:00 A.M. and 2:00 A.M.
Consult with the local governing body to determine any other local regulations and licensing regarding the operation of the carrier license. Apply NOW

Direct Wine Shipping

Any winery located within or outside the state may ship wine to South Dakota consumers if they have met the requirements to obtain a wine direct shipper license.

Licensing Requirements

Wineries wishing to become licensed in South Dakota need a sales tax license and a direct shipper license. When submitting the application, the applicant will need to include a copy of their current federal basic wine manufacturing permit. There is an annual fee of $100.00 for the license. See the application tutorial video to learn more.

Apply NOW

Tax on Shipments

As a wine shipper, you are required to collect sales tax based on where the customer receives the order (the customer’s shipping address) and both the product cost and shipping charges are subject to tax. The 4.2% state sales tax applies to all shipments into South Dakota. The municipal sales tax and municipal gross receipts tax only apply to shipments within a municipality. Wine direct shipper licenses must submit their sales tax liabilities using our online Filing and Tax Payment portal.

See Municipal Tax Rates

Reporting Requirements

Wineries are required to report their sales quarterly through our online Filing and Tax Payment portal.

Each quarter the department publishes a list of wine labels registered for sale and shipped in the state. The following is the most current report:

2025 4th Quarter - Direct Shipper Brand Label Report (PDF)

2025 3rd Quarter - Direct Shipper Brand Label Report (PDF)

Brand Label Registration

Prior to offering alcoholic beverage products for sale or consumption in the State of South Dakota, the products must be registered. to apply for brand label registration electronically, please use this website: Product Registration Online. Businesses will need the 4-digit license number assigned to them for this system. If you need assistance, contact specialT@state.sd.us to obtain the 4-digit license number.

To apply directly to the state using our mail-in form, use the Alcoholic Beverage Brand – Label Registration Application.

There is a brand label registration fee due for each product that is registered, brand label registrations are required to be renewed annually year by December 31st.

| Product | Initial Brand Label Registration Fee | Additional Brand Labels Registration Fee |
| --- | --- | --- |
| Wines * | $25.00 | $17.50 |
| Malt & Cereal Beverages | $25.00 | $25.00 |
| Distilled Spirits, Whiskeys, Gin, Rum, Brandy, Vodka, Alcoholic Cordials, Liqueurs, etc. | $50.00 | $50.00 |

* The law provides for a reduced registration fee when the applicant registers two or more brand labels of wine.

Find supplier requirements and resources by visiting our liquor retailors & other liquor licenses page here.

Miscellaneous Items

Delivering Alcohol

State law prohibits on/off-sale licensees from making any delivery of alcoholic beverages outside of the premises described in the alcohol license unless they have obtained an off-sale delivery license.

Kegs

Businesses that sell kegs are required to maintain a record of the alcohol purchaser's name and address for one year. Businesses must have a method of identification for the keg, but the identification cannot be permanent or damaging to the structure of the keg.

Other Alcohol Licenses

S eparate manufacturer's licenses are required for businesses that manufacturer spirits, cider, malt beverages and wine. Other requirements are necessary for liquor retailers and liquor licenses as well.

Additional Alcohol Tax Resources

Direct Wine Shipper Search
Tax License Application

Alcoholic Beverage Gallonage Report of Monthly Sales to Ellsworth A.F.B. Military Mess Form 0886

https://sddor.seamlessdocs.com/f/0886

Complete Form Liquor Licensee Delinquent Notices From Wholesalers

https://sddor.seamlessdocs.com/f/0087

Complete Form Report of Alcohol Beverage Violation and Notice of Conviction Form 0876

https://sddor.seamlessdocs.com/f/0876

Complete Form See All Alcohol Tax Online Forms The following alcohol training programs are approved by the South Dakota Department of Revenue. The Department has not approved each variation of these alcohol training programs. To determine whether the alcohol training program you are considering attending is approved by the Department consult with the contact people listed for each alcohol training program or with the Department of Revenue.

Online Responsible Alcohol Training Program

For more information, contact Skillsoft at 1 (866) 754-5435.

SureSell

Responsible Alcohol Server Training at www.SureSellNow.com. Printable certificate available immediately upon completion. For more information, contact by phone at (512) 343-2600 ext. 200 or by email at support@diversyslearning.com.