Michigan DTC compliance

Compliance reference

• permit_expiration_date

  Single source

  04-30

• volume_limit_value

  Cross-source verified

  1500

• volume_limit_unit

  Preliminary

  cases_9l

• volume_limit_basis

  Preliminary

  aggregate_per_year

• permit_required

  Cross-source verified

  true

• reporting_frequency

  Cross-source verified

  quarterly

• sales_tax_collected_by

  Single source

  shipper

• excise_tax_collected_by

  Preliminary

  shipper

• common_carrier_allowed

  Cross-source verified

  true

• reporting_frequency_threshold_gallons

  Single source

  0

• direct_ship_allowed

  Preliminary

  true

• permit_term_years

  Cross-source verified

  1

• permit_fee_usd

  Cross-source verified

  100

• ncsl_statute_citation

  Preliminary

  Type of Alcohol and Whether License or Permit Required: Mich. Comp. Laws §436.1203 Wine; requires direct shipper license Maximum Amount for Shipping: Not more than 1,500 nine-liter cases, or 13,500 liters in total, of wine in a calendar year to consumers in this state Direct Shipping License or Permit: Mich. Comp. Laws §436.1203 (1) (1) Except as provided in this section and §301, a person shall not sell, deliver, or import alcoholic liquor, including alcoholic liquor for personal use, in this state unless the sale, delivery, or importation is made by the commission, the commission's authorized agent or distributor, an authorized distribution agent approved by order of the commission, a person licensed by the commission, or by prior written order of the commission. (4) For purposes of subsection (1), a direct shipper may sell, deliver, or import wine to consumers in this state by means of any mail order, internet, telephone, computer, device, or other electronic means, or sell directly to a consumer on the winery premises. A direct shipper that sells, delivers, or imports wine to a consumer under this subsection shall comply with all of the following: (a) Hold a direct shipper license. (b) Pay any applicable taxes to the commission and pay any applicable taxes to the department of treasury as directed by the department of treasury. On the request of the department of treasury, a direct shipper shall furnish an affidavit to verify payment. (c) Comply with all laws of this state, including, but not limited to, the prohibition on sales to minors. (d) Verify the age of the individual placing the order by obtaining from him or her a copy of a photo identification issued by this state, another state, or the federal government or by using an identification verification service. The person receiving and accepting the order on behalf of the direct shipper shall record the name, address, date of birth, and telephone number of the individual placing the order on the order form or other verifiable record of a type and generated in a manner approved by the commission and provide a duplicate to the commission. (e) On request of the commission, make available to the commission any document used to verify the age of the individual ordering or receiving the wine from the direct shipper. (f) Stamp, print, or label on the outside of the shipping container that the package “Contains Alcohol. Must be delivered to a person 21 years of age or older.”. The recipient at the time of the delivery shall provide photo identification verifying his or her age and sign for the delivery. (g) Place a label on the top panel of the shipping container containing the name and address of the individual placing the order and the name of the designated recipient if different from the name of the individual placing the order. The direct shipper must have received a registration number of approval from the commission for any wine imported into this state. However, the registration number of approval from the commission is not required to be on the invoice or on the label of the wine that the direct shipper sells, delivers, or imports to a consumer in this state. (h) Direct ship not more than 1,500 nine-liter cases, or 13,500 liters in total, of wine in a calendar year to consumers in this state. If a direct shipper, whether located in this state or outside this state, owns, in whole or in part, or commonly manages one or more direct shippers, it shall not in combination ship to consumers in this state more than 13,500 liters of wine in the aggregate. (i) Pay wine taxes quarterly and report to the commission quarterly the total amount of wine, by type, brand, and price, shipped to consumers in this state during the preceding calendar quarter, and the order numbers. (j) Authorize and allow the commission and the department of treasury to conduct an audit of the direct shipper's records. (k) Consent and submit to the jurisdiction of the commission, the department of treasury, and the courts of this state concerning enforcement of this section and any related laws, rules, and regulations. (l) For a direct shipper that is a wine manufacturer as described in subsection (10)(b), direct ship only the wine that the wine manufacturer has manufactured and registered with the commission, wine purchased from another wine manufacturer and further manufactured or bottled and registered with the commission, or labeled shiners purchased from another manufacturer in compliance with section 204a and registered with the commission. (5) For a delivery of beer, wine, mixed spirit drink, or spirits through the use of a common carrier under subsection (3), a person taking the order on behalf of the qualified retailer shall comply with subsection (3)(b) to (f). For a sale, delivery, or importation of wine occurring by any means described in subsection (4), a person taking the order on behalf of the direct shipper shall comply with subsection (4)(c) to (g). (6) A person that delivers the wine for a direct shipper under this section shall verify that the individual accepting delivery is 21 years of age or older and is the individual who placed the order or the designated recipient, is an individual 21 years of age or older currently occupying or present at the address, or is an individual otherwise authorized through a rule promulgated under this act by the commission to receive alcoholic liquor under this section. If the delivery person, after a diligent inquiry, determines that the purchaser or designated recipient is not 21 years of age or older, the delivery person shall return the wine to the direct shipper. A delivery person who returns wine to the direct shipper because the purchaser or designated recipient is not 21 years of age or older is not liable for any damages suffered by the purchaser or direct shipper. (10) A direct shipper shall not sell, deliver, or import wine to a consumer unless it applies for and is granted a direct shipper license from the commission. This subsection does not prohibit wine tasting or the selling at retail by a wine maker of wines he or she produced and bottled or wine manufactured for that wine maker by another wine manufacturer, if done in compliance with this act. Only the following persons qualify for the issuance of a direct shipper license: (a) A wine maker. (b) A wine manufacturer that is located inside this country but outside of this state and that holds both a federal basic permit issued by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of Treasury and a license to manufacture wine in its state of domicile. (11) An applicant for a direct shipper license shall submit an application to the commission in a written or electronic format provided by the commission and accompanied by an application and initial license fee of $100. The initial application must be accompanied by a copy or other verifiable evidence of the existing federal basic permit or license, or both, held by the applicant. The direct shipper may renew its license annually by submission of a license renewal fee of $100 and a completed renewal application. The commission shall use the fees collected under this section to conduct investigations and audits of direct shippers. The failure to renew, or the revocation or suspension of, the applicant's existing Michigan license, federal basic permit, or license to manufacture wine in its state of domicile is grounds for revocation or denial of a direct shipper license. If a direct shipper is found guilty of violating this act or a rule promulgated by the commission, the commission shall notify both the alcoholic liquor control agency in the direct shipper’s state of domicile and the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of Treasury of the violation. (19) A common carrier that carries or transports alcoholic liquor into this state to a person in this state shall submit quarterly reports to the commission. A report required under this subsection must include all of the following about each delivery to a consumer in this state during the preceding calendar quarter: (a) The name and business address of the person that ships the alcoholic liquor. (b) The name and address of the recipient of the alcoholic liquor. (c) The weight of the alcoholic liquor delivered to a consignee. (d) The date of the delivery. (21) A common carrier described in subsection (19) shall maintain the books, records, and documents supporting a report submitted under subsection (19) for three years unless the commission notifies the common carrier in writing that the books, records, and supporting documents may be destroyed. Within 30 days after the commission's request, the common carrier shall make the books, records, and documents available for inspection during normal business hours. Within 30 days after a local law enforcement agency's or local governmental unit's request, the common carrier shall also make the books, records, and documents available for inspection to a local law enforcement agency or local governmental unit where the carrier resides or does business. (25) As used in this section: (a) “Common carrier” means a company that transports goods, on reasonable request, on regular routes and at set rates. (b) “Computer” means any connected, directly interoperable or interactive device, equipment, or facility that uses a computer program or other instructions to perform specific operations including logical, arithmetic, or memory functions with or on computer data or a computer program and that can store, retrieve, alter, or communicate the results of the operations to a person, computer program, computer, computer system, or computer network. (c) “Computer network” means the interconnection of hardwire or wireless communication lines with a computer through remote terminals, or a complex consisting of two or more interconnected computers. (d) “Computer program” means a series of internal or external instructions communicated in a form acceptable to a computer that directs the functioning of a computer, computer system, or computer network in a manner designed to provide or produce products or results from the computer, computer system, or computer network. (e) “Computer system” means a set of related, connected or unconnected, computer equipment, devices, software, or hardware. (f) “Consumer” means an individual who purchases beer, wine, mixed spirit drink, or spirits for personal consumption and not for resale. (g) “Device” includes, but is not limited to, an electronic, magnetic, electrochemical, biochemical, hydraulic, optical, or organic object that performs input, output, or storage functions by the manipulation of electronic, magnetic, or other impulses. (h) “Diligent inquiry” means a diligent good faith effort to determine the age of an individual, that includes at least an examination of an official Michigan operator's or chauffeur's license, an official Michigan personal identification card, or any other bona fide picture identification that establishes the identity and age of the individual. (i) “Direct shipper” means either of the following: (i) A wine manufacturer that sells, delivers, or imports wine it has manufactured, bottled, and registered with the commission, to consumers in this state or that is transacted or caused to be transacted through the use of any mail order, internet, telephone, computer, device, or other electronic means, or sells directly to consumers on the winery premises. (ii) A wine manufacturer that purchases wine from another wine manufacturer and further manufactures or bottles the wine or purchases shiners of wine from another wine manufacturer in compliance with §204a, registers the wine with the commission and sells the wine to consumers in this state that is transacted or caused to be transacted through the use of any mail order, internet, telephone, computer, device, or other electronic means, or sells directly to consumers on the winery premises. (j) “Facilitate” means, subject to subdivision (k), advertising on behalf of a retailer, by means of the internet or mobile application, and pursuant to a written or oral agreement, the brands and prices of beer, wine, or spirits products sold by a retailer and one or more of the following: (i) Assisting the retailer, in any manner, in the arrangement of delivery as allowed in this section. (ii) Assisting the retailer, in any manner, in the processing of payment by the consumer for the beer, wine, or spirits. (iii) Transmitting customer information to the retailer. (iv) Assisting the retailer by providing customer service. (v) If the retailer maintains supervision and control over the day-to-day operation of its business, providing other normal and customary operational services. (k) “Facilitate” does not include web designing, operating an internet search engine, or publishing an internet version of a newspaper. (l) “Identification verification service” means an internet-based service approved by the commission specializing in age and identity verification. (m) “Mobile application” means a specialized software program downloaded onto a wireless communication device. (n) “Qualified retailer” means a retailer licensed to sell alcoholic liquor for consumption off the premises that complies with all of the following: (i) The retailer maintains physical licensed premises that are open to the general public for face-to-face sales transactions of alcoholic liquor, packaged food, and other products to consumers. (ii) At least 25% of the retailer's annual gross sales of alcoholic liquor must be from face-to-face sales transactions with consumers on the premises described in subparagraph (i) unless the retailer's physical licensed premises is less than 15,000 square feet in total. (iii) The retailer holds and maintains either of the following for the premises described in subparagraph (i): (A) A retail food establishment license issued under the food law, 2000 PA 92, MCL 289.1101 to 289.8111. As used in this sub-subparagraph, “retail food establishment” means that term as defined in section 1111 of the food law, 2000 PA 92, MCL 289.1111. (B) An extended retail food establishment license issued under the food law, 2000 PA 92, MCL 289.1101 to 289.8111. As used in this sub-subparagraph, “extended retail food establishment” means that term as defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107. (o) “Qualified small distiller” means a small distiller, or an out-of-state entity that is the substantial equivalent of a small distiller, that sells under 3,000 gallons of spirits per calendar year directly to retailers located in this state or out-of-state entities that are the substantial equivalent of retailers. If a small distiller or an out-of-state entity that is the substantial equivalent of a qualified small distiller manufactures spirits at more than 1 location, the total number of gallons of spirits sold to retailers or out-of-state entities that are the substantial equivalent of retailers from all locations must be combined to determine the 3,000-gallon threshold. (p) “Third party facilitator service” means a person licensed by the commission to do any of the following: (i) Facilitate the sale of beer, wine, and mixed spirit drink to a consumer as provided in subsection (15) on behalf of a qualified retailer that holds a specially designated merchant license located in this state. (ii) Facilitate the sale of spirits to a consumer as provided in subsection (16) on behalf of a qualified retailer that holds a specially designated distributor license located in this state. (iii) Deliver beer, wine, and mixed spirit drink to a consumer as provided in subsection (15) on behalf of a qualified retailer that holds a specially designated merchant license located in this state. (iv) Deliver spirits to a consumer as provided in subsection (16) on behalf of a qualified retailer that holds a specially designated distributor license located in this state. Direct Shipping License or Permit: Mich. Comp. Laws §436.1537a (1) Notwithstanding anything in this act to the contrary, a qualified licensee may fill and sell qualified containers with alcoholic liquor for consumption off the premises under the following conditions: (a) The qualified licensee or his or her agent or employee does not fill the qualified container in advance of the sale. (b) The qualified licensee complies with all applicable rules promulgated by the commission. (c) The qualified licensee or his or her agent seals the qualified container. (2) Notwithstanding anything in this act to the contrary, a qualified licensee may deliver alcoholic liquor to a consumer in this state if all of the following conditions are met: (a) The qualified licensee complies with all laws of this state, including, but not limited to, the prohibition on sales to minors. (b) The qualified licensee stamps, prints, or labels on the outside of the qualified container "Contains Alcohol. Must be delivered to a person 21 years of age or older.". The recipient at the time of the delivery shall provide identification verifying his or her age. (c) The qualified licensee or his or her agent seals the qualified container. (d) If the qualified licensee is a retailer, the alcoholic liquor is delivered by the qualified licensee's employee or a third party facilitator service, as that term is defined in §203. (e) If the qualified licensee is a manufacturer, the alcoholic liquor is delivered by the qualified licensee's employee. (3) Except as otherwise allowed under this act, a qualified licensee shall not sell alcoholic liquor in its original package under this section. (4) This section does not apply after Dec. 31, 2025. (5) As used in this section: (a) "Consumer" means that term as defined in §203. (b) "Qualified container" means a clean, sealable container that is for the sale of alcoholic liquor for consumption off the premises, that has a liquid capacity that does not exceed one gallon, and that, after it is filled, is sealed with a device or material that is used to fully close off the container securely with no perforations or straw holes. (c) "Qualified licensee" means any of the following: (i) A retailer that holds a license, other than a special license, to sell alcoholic liquor for consumption on the licensed premises. (ii) A manufacturer with an on-premises tasting room permit issued under §536. (iii) A manufacturer that holds an off-premises tasting room license issued under §536. (iv) A manufacturer that holds a joint off-premises tasting room license issued under §536.

• age_verification_required

  Cross-source verified

  true

• permit_expiration_anchor

  Single source

  fiscal_year_end

Sales-tax rate

Rate facts

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