The Idaho State Tax Commission requires several types of businesses to have a permit and an Idaho Wine Tax Surety Bond. This includes wineries that sell wine at wholesale, wineries that ship wine directly to Idaho residents, and wineries that make strong beer (containing more than 4% alcohol by weight) and wine, breweries that make beer (4% or less alcohol content), beer wholesalers and wine distributors.
The Idaho Tax Commission defines a direct shipper as a winery that ships wine directly to a resident's home. Wholesalers are defined as any wine or beer that is purchased and sold to Idaho retailers. Both direct shippers and wholesalers are required to pay monthly taxes to the Commission and have a wine permit. The applicable tax rate for wine is 45 cents per gallon.
Wineries that direct ship need several permits in order to ship wine directly to Idaho residents. This includes the following:
A direct shipper permit from the Idaho State Police Alcohol Beverage Control Division.
A wine tax permit from the Idaho State Tax Commission.
A sellers permit from the Idaho State Tax Commission.
Applicants for the three permits must complete an Idaho Beer and Wine Tax Application. Applicants will need to indicate the type of business that they are considered to be, the type of business activity they provide (winery, brewery, distributor, wholesaler), and the type of permits requested.
Applicants are required to obtain a surety bond. The surety bond amount will need to be equal to three times the average monthly beer or wine tax owed. New businesses are required to have a minimum $1,000 surety bond.
Instead of a surety bond, an irrevocable letter of credit, cash deposit or other security of equal value may be deposited with the State.
Out-of-state wine direct shippers are required to provide a copy of their resident alcohol beverage license.
The premium that you pay for an Idaho Wine Tax Surety Bond is dependent on credit and the bond amount required.
Contact our Surety Bond Specialists at:
Hours: 8:00-5:00 CST, Monday through Friday