Alcohol Taxes

Effective July 15, 2020, properly licensed in-state and out-of-state manufacturers of alcohol may directly ship alcohol to Kentucky consumers. Manufacturers must obtain a Direct Shipper’s license from the Kentucky Alcoholic Beverage Control (ABC) and then contact the Kentucky Department of Revenue (DOR) to set up a revenue account for their place of business. The Excise Tax Section’s phone number is 502-564-6823, Option 3 for alcohol-related inquiries or direct email to DOR.WebResponseExciseTax@ky.gov

Direct Shippers must complete :

• Form 73A550 – Quarterly Return of Direct Shippers of Alcohol, for remittance of the excise and wholesale equivalent taxes

And, depending on alcohol type, either:

• Supplemental Form 73A551 — Direct Shippers’ Detailed Report of Distilled Spirits or Wine
• Supplemental Form 73A552 — Direct Shippers’ Detailed Report of Malt Beverages

A tax return along with corresponding supplemental forms are due to DOR for each quarter even if there are no direct shipments that quarter. The manufacturer must use a common carrier to transport direct shipments to Kentucky consumers and report those used on the supplemental forms filed each quarter. State sales and use tax is due on direct shipments of alcohol to Kentucky consumers along with applicable local taxes.

Shipment limitations:

• Distilled Spirits - in quantities not to exceed ten (10) liters per consumer per month;
• Wine - in quantities not to exceed ten (10) cases per consumer per month;
• Malt Beverages - in quantities not to exceed ten (10) cases per consumer per month.