Alcohol Tax History

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2019 Session

  • New legislation authorizes the governor, in consultation with the tax commissioner, to enter into an agreement with any, or all of, the five North Dakota Indian Tribes for administration of tribal wholesale taxes on cigarette, tobacco and alcoholic beverages and gross receipts tax on retail sales of alcoholic beverages.
  • Updated amount of beer microbrew pubs may sell of the beer it manufacturers for off-premises consumption.
  • Provides for special event permits for microbrew pubs for up to 20 days each calendar year.
  • Allows the transfer of beer manufactured at a microbrew pub’s licensed premise to an affiliated microbrew pub licensee.
  • Amends legislation that brewer taprooms may obtain special event permits for up to 20 days each calendar year for off-premises events at a designated trade show, convention, festival, fundraiser or other related special event hosted by a nonprofit organization unaffiliated with the brewer taproom.
  • Allows the transfer of beer manufactured at a brewer taproom’s licensed premise to an affiliated brewer taproom licensee.
  • Legislation was passed that changes the regulatory side of domestic wineries, including:
    • North Dakota domestic wineries are no longer required to use a minimum quantity of North Dakota produced fruit or other ingredients.
    • The number of special event permits that domestic wineries may obtain has been increased from 20 to 40 each calendar year.
    • Reference to Pride of Dakota events has been removed from the statute. Attending a Pride of Dakota event will require use of a domestic winery’s special event permit.
    • A domestic winery will be allowed to purchase up to 4,000 gallons of wine each year in bulk from inside or outside of North Dakota. The bulk wine may not be in label approved containers.
    • Prior to August 1, 2019, any licensed winery that produces less than 50,000 gallons of wine each year may sell and deliver, onsite or offsite, the wine it produced directly to licensed retailers without selling through a licensed wholesaler. After July 31, 2019, the 50,000 gallon maximum production volume is reduced to 25,000 gallons.
  • Legislation was passed that changes the regulatory side of domestic distilleries, including:
    • The number of special event permits that a domestic distillery may obtain has been increased from 20 events to 40 event days per calendar year.
    • Reference to Pride of Dakota events has been removed from the statute. Attending a Pride of Dakota event will require use of a domestic distillery’s special event permit days.
    • Domestic distilleries that produces no more than 12,000 proof gallons of distilled spirits may sell and deliver, onsite or offsite, the distilled spirits it produced directly to licensed retailers without selling through a licensed wholesaler.

2015 Session

  • Powdered alcohol defined and the sale prohibited.
  • Remove requirement for licensed alcohol carrier to provide information on direct and logistics shippers. Require the tax commissioner to provide notice to licensed alcohol shipper that direct shipper is not licensed and reduce the penalties to alcohol shippers.
  • Allow multiple tap room licenses and locations for same owner.

2013 Session

  • Alcohol carriers and logistics shippers became subject to new licensing requirements.
  • Brewer taproom licensing provisions were established.
  • Direct to retail sales provisions for licensed wineries were established.

2011 Session

  • Expanded the number of days the Tax Commissioner may issue permits for a domestic winery or domestic distillery to participate in special events. Participation has been increased from twenty days to twenty events plus all Pride of Dakota events. 

2009 Session

  • Domestic distilleries required to obtain annual license and pay the wholesaler and applicable retailer taxes to the State Tax Commissioner. 
  • Tax rate on sparkling wine reduced to $.50 per wine gallon. 
  • Updated obsolete law references for microbrew pubs and referenced monthly tax reporting by microbrew pubs.

2007 Session

  • Container capacity was defined for “bottle or can” and bulk sales. 
  • The reciprocity with other states with regard to wine sales was repealed. 
  • Direct shipments to consumers inside or outside of the state are allowed by domestic wineries.
  • Domestic winery reporting requirements were defined. The revocation of a suppliers license is provided for failure to comply with reporting requirements.

2005 Session

  • Suppliers became subject to new licensing requirements. 
  • Brand registration requirements were repealed. 
  • Thresholds for point-of-sale and dispensing equipment provided by wholesalers to retailers were increased.
  • The percentage volume of North Dakota produced ingredients that must be included in wine produced by a domestic winery was defined.

2003 Session

  • The alcoholic beverages law was amended to replace "farm winery" with "domestic winery."

2001 Session

  • The wholesale alcoholic beverage administration was transferred from the state treasurer to the state Tax Commissioner effective July 1, 2001. 
  • Effective August 1, 2001, direct shippers of alcoholic beverages and farm wineries are required to obtain annual licenses and pay the wholesaler and applicable retailer taxes to the State Tax Commissioner.

1999 Session

  • Penalties established for the shipping of out-of-state sales of alcoholic beverages from an out-of-state location directly to a person in North Dakota who is not a wholesaler.

1995 Session

  • Microbrew pubs became subject to new licensing requirements.