Wineries of all sizes may now obtain a Direct Wine Shipment license (17W) from the Arizona Department of Liquor Licenses and Control. Wineries may begin making shipments to Arizona consumers once they receive their 17W License from the DLLC. The amount of wine that can be shipped per person, per winery, per year, is phased in over three years: 6 cases through 2017; 9 cases in 2018; and 12 cases beginning in 2019 and thereafter. The initial 17W License fee is $225 with subsequent renewals costing $175. The 17W License will renew every year February 1st – Feb 28th. Wineries that obtain a 17W License in 2016 must pay the renewal fee by Feb. 28, 2017. Wineries that obtain a 17W license in January of 2017 will not have to pay the renewal fee in 2017.
17W License application must be completed electronically http://www.azliquor.gov/DirectShipment/index.cfm. The following information is needed to complete the application: federal TTB permit, California 02 Winegrower license (or liquor license issued by the state where your business is located) and your Arizona Transaction Privilege Tax (TPT) number. Wineries can apply for a TPT number using the online application on the Arizona Department of Revenue website at https://www.azdor.gov/business/transactionprivilegetax.aspx.
When a winery applies for their state TPT License, they should also check the box for the various municipal TPT Licenses if they intend to ship into those municipalities. Or, since a winery may not know which municipalities they will be shipping into, the winery can ship the wine to any municipality in AZ when it is purchased online. When the winery is submitting their TPT return at the end of each month, they can then sign up for the municipality’s TPT License. All state and municipal TPT Licenses are renewed by January 31st of each year.
Beginning January 1, 2017 the Arizona Department of Revenue will be the single point of administration and collection of state, county and municipal transaction privilege tax. Currently, however, DOR does not collect taxes for all municipalities within Arizona. Municipalities that collect their own taxes are referred to as Non-Program Cities. Wineries that ship to consumers in Non-Program Cities prior to January 1, 2017 will need to apply for Non-Program City TPT Licenses and file returns for December 2016 directly through the city. A list of Non-Program Cities is available via the DOR website https://www.azdor.gov/TransactionPrivilegeTax(TPT)/NonProgramCities.aspx.
Direct-to-Consumer Wine Shipment licensees are required to submit an Annual Shipment Report no later than January 31 of each year. The first report will be due on or before January 31, 2018. Wineries producing 20,000 gallons or less may continue to ship an unlimited amount of wine under the Out-of-State Farm Winery License and do not need to apply for the new 17W license. The on-site provisions are no longer available. All wineries are now required to hold a 17W License or Out-of-State Farm Winery License when making on-site or off-site direct shipments to Arizona consumers.