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Alcohol

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Alcohol Licenses for Businesses

Carriers Alcohol Licensing

Any business or person who transports persons for a fee on any means of conveyance (such as limousine services, airlines, tour buses) and wishes to sell or furnish alcohol needs a carrier license. The carrier license fee is $100, payable to the South Dakota Department of Revenue.

 

Requirements

  • The carrier must purchase alcohol directly from a wholesaler.
  • The carrier may transport alcohol aboard one of their licensed conveyances or may obtain a transporter license to pick up alcohol from the wholesaler in a vehicle other than one of their licensed vehicles.
  • The driver of the carrier must be at least 21 years of age.
  • Consult with your local governing body to determine any other local regulations regarding the operation of the carrier license.

Apply NOW

 

Direct Wine Shipping

Any winery located within or outside the state may ship wine to South Dakota consumers if they have met the requirements to obtain a wine direct shipper license.

 

Licensing Requirements

Wineries wishing to become licensed in South Dakota need a sales tax license and a direct shipper license. When submitting the application, the applicant will need to include a copy of their current federal basic wine manufacturing permit. There is an annual fee of $100.00 for the license. See the application tutorial video to learn more.

Apply NOW

 

Brand Registration

Each brand offered for sale in South Dakota is required to be registered with the State. There is a brand registration fee due for each brand. South Dakota law provides for a reduced registration fee when two or more brand labels of the same class of wine are registered by an applicant.

Initial Brand Label Registration Fee Additional Brand Labels Registration Fee
$25 $17.50

 

In order to market your alcoholic beverage products in the State of South Dakota, they must be first filed and approved by the United States Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau. To apply for brand registration using a national registry system, please use the Product Registration Online. To apply directly to the state using our online form please use the Alcoholic Beverage Brand – Label Registration Application.

 

Tax on Shipments

As a wine shipper, you are required to collect sales tax based on where the customer receives the order (the customer’s shipping address) and both the product cost and shipping charges are subject to tax. The 4.5% state sales tax applies to all shipments into South Dakota. The municipal sales tax and municipal gross receipts tax only apply to shipments within a municipality. Wine direct shipper licenses must submit their sales tax liabilities using our online Filing and Tax Payment portal.

See Municipal Tax Rates

 

Reporting Requirements

Wineries should report sales and can do so by using the Distilled Spirits / Wine / Cider Monthly Report template (XLSX).

 

Manufacturer’s License

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There are separate licenses for businesses that manufacturer spirits, cider, malt beverages and wine.

 

Artisan Distillers

The annual artisan distillers license fee is $500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture up to 50,000 gallons of spirits annually;
  • May operate additional manufacturing locations with the same privileges as the original location; and
  • 30% of ingredients must be grown or produced in South Dakota.

 

Distillers

The annual distillers license fee is $2,500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture distilled spirits in unlimited quantities;
  • May not hold other retail licenses;
  • May sell their products to wholesalers; and
  • May sell their products to consumers for on-sale and off-sale consumption from their licensed premises.

 

Microcideries

The annual microcideries license fee is $500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture up to 12,000 barrels of cider annually;
  • May sell their products to consumers for on-sale and off-sale consumption from their licensed premises;
  • May sell their products to wholesalers. Authorizes up to 600 barrels annually to be sold to retailers (self-distribution);
  • May hold small manufacturing licenses and certain on-sale licenses at their licensed premises; and
  • Is allowed up to five additional manufacturing locations.

 

Cider Manufacturer

The annual cidery license fee is $2,500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture cider in unlimited quantities;
  • May sell their products to wholesalers;
  • May not hold other retail licenses; and
  • May sell their products to consumers for on-sale and off-sale consumption from their licensed premises.

 

Microbreweries

The annual microbreweries license fee is $500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture up to 30,000 barrels of malt beverage annually;
  • May sell their products to consumers for on-sale and off-sale consumption from their licensed premises;
  • May sell their products to wholesalers. Authorizes up to 1,500 barrels annually to be sold to retailers (self-distribution);
  • Allows other small manufacturing licenses and certain on-sale licenses to be held on their licensed premises; and
  • Permits up to five additional manufacturing locations.

 

Malt Beverage Manufacturer

The annual malt beverage manufacturers license fee is $2,500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture malt beverages in unlimited quantities;
  • May not hold other retail licenses;
  • May sell their products to wholesalers; and
  • May sell their products to consumers for on-sale and off-sale consumption from their licensed premises.

 

Farm Winery

The annual farm winery license fee is $500, payable to the Department of Revenue. No county or city fees apply to this license.

  • May manufacture up to 150,000 gallons of wine annually;
  • Requires that at least 50% of the raw materials used in the finished product are grown or produced in South Dakota;
  • Farm wineries have the ability to hold certain additional types of retail licenses;
  • Farm wineries are allowed to operate additional manufacturing locations with the same privileges as the winery's original location, and
  • Farm wineries cannot use bulk wine in the manufacturing process.

 

Wine Manufacturer

The annual wine manufacturers license fee is $2,500, payable to the Department of Revenue. No county or city fees apply to this license.

  • Wine manufacturers are not limited in total production quantity.
  • The quantity of bulk wine used may not exceed 50% of the wine manufacturer’s annual production and the bulk wine must be blended and not bottled.
  • Wine manufacturers may only sell wine produced by the licensee to a wholesaler or to a consumer for on-sale or off-sale consumption.
  • Wine manufacturers may not hold other retail licenses.

 

How to Apply

  1. Click on the “Apply Now” button below
  2. Start a new application without creating an account.
  3. Select your business type.
  4. Select your alcohol license (New or Renewal)
  5. Complete your application.
  6. Pay for your application.

Apply NOW

 

Renewals

Businesses who hold a manufacturer license will receive a courtesy email reminder prior to the license expiring letting them know that it is time to renew their license. Businesses can then log in to our online Filing and Tax Payment portal and select the RENEW link.

 

Liquor Retailer

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On-Sale (Outside of City Limits)

Anyone selling beer, wine and spirits for customers to consume on the licensed premises must purchase this license. Contact your local county auditor for the availability of licenses, the cost and what the local process is for obtaining a license. 

See Applicable Laws

 

On-Sale (Within City Limits)

Anyone selling beer, wine and spirits for customers to consume on the licensed premises must purchase a Retail On-Sale Liquor License. Contact your local finance officer for the availability of licenses, the cost and what the local process is for obtaining a license.

See Applicable Laws

 

Package Off-Sale Liquor License

Anyone selling alcoholic beverages by the package for consumers to consume off of the licensed premises must purchase a Package Off-Sale Liquor license. These licenses may only be issued for use within an incorporated city, town, or community improvement district. Contact your local finance officer for availability of licenses, the cost and what the local process is for obtaining a license.

 

Fee Schedule

0-500 Population
(Cities of the 3rd Class)
500-5,000 Population
(Cities of the 2nd Class)
5,000+ Population
(Cities of the 1st Class)
Not less than $300
Renewal: May not exceed $500
Not less than $300
Renewal: May not exceed $500
Not less than $300
Renewal: May not exceed $500

 

Malt Beverage On and Off-Sale and South Dakota Wine Retailers

Anyone who will be selling malt beverages or wine produced by a South Dakota farm winery for consumption on or off the premises is required to purchase this license for $300, payable to your local governing body. To apply, contact your local finance officer if the business will be located within the city limits or your local county auditor if the business will be located outside the city limits.

 

On-Sale Convention Facility Liquor License

Contact your local finance officer for the availability of licenses, the cost and what the local process is for obtaining a license. Examples of Convention Facility On-Sale Liquor Businesses:

  • Hotels or motels with convention facilities serving alcoholic beverages.

 

On-Sale Liquor License for Publicly Operated Airports

Contact your local finance officer for the availability of licenses, the cost and what the local process is for obtaining a license.

 

Wine On and Off-Sale Retailer License

Contact your local finance officer if the business will be located within the city limits or your local county auditor if the business will be located outside the city limits.

 

Supplier

Wholesalers pay all taxes on alcohol received from suppliers. The Department encourages suppliers to review the codified laws and administrative rules that apply to alcohol sales in this state. Please contact the Business Tax Division if you have any questions about this information. Any supplier wishing to sell alcoholic beverages in the State of South Dakota must complete the following requirements:

Transportation Company License

Any common carrier or operator of a private vehicle transporting or accepting for transportation any alcoholic beverage must apply for this license. This does not include carriers in interstate commerce where the shipment originates outside of the state and is destined to a point outside of the state.

 

How to Apply

  1. Click on the “Apply” button below
  2. Start a new application without creating an account.
  3. Select your business type.
  4. Select your alcohol license (New or Renewal)
  5. Complete your application.
  6. Pay for your application.

Apply NOW

 

Renewals

Businesses who hold a transporters license will receive a courtesy email reminder prior to the license expiring letting them know that it is time to renew their license.  Businesses can then log in to our online Filing and Tax Payment portal and select the RENEW link.

 

Wholesalers License

Anyone selling wine, spirits, and malt beverages to retailers must purchase the Liquor Wholesalers License. The fee for a wholesalers license is $5,000, payable to the Department of Revenue. A surety bond form (PDF) in the amount of $50,000 is also required. A wholesaler who only sells malt beverages to retailers may obtain a malt beverage wholesaler license. The fee is $400.

 

How to Apply

  1. Click on the “Apply” button below
  2. Start a new application without creating an account.
  3. Select your business type.
  4. Select your alcohol license (New or Renewal)
  5. Complete your application.
  6. Pay for your application.

Apply NOW

 

Renewals

Businesses who hold a wholesaler license will receive a courtesy email reminder prior to the license expiring letting them know that it is time to renew their license.  Businesses can then log in to our online Filing and Tax Payment portal and select the RENEW link.

 

Special Alcoholic Beverage Licenses

State law allows specific organizations the ability to sell and serve alcoholic beverages during special events. These licenses are issued by the city or county where the event is held. An eligible organization interested in holding a special event and selling or serving alcohol should contact the local governing body where the event is to be held. For additional information on the types of licenses, who is eligible, and the privileges with each of these licenses please see our Special Alcoholic Beverage License Tax Fact (PDF). Organizations that qualify include:

  • Civic
  • Charitable
  • Educational
  • Fraternal
  • Veterans
  • Certain businesses with a permanent alcoholic beverage license

 

Hunting Preserves Facility On-Sale License

Counties may issue a hunting preserve facility an on-sale license. The annual hunting preserve facility on-sale license is $500. Contact your local county auditor for the availability of licenses and the local process is for obtaining a license. 

 

Requirements

  • The licensee may only sell alcoholic beverages during the shooting preserve season.
  • May only sell for onsite consumption.
  • May only sell to a guest as part of a hunting or shooting rental package for use of the shooting preserve’s facility and services.
  • May not offer alcoholic beverages for retail sales to the general public.
  • The facility must have:
    • Lodging accommodations
    • Equipment and seating for the preparation and service of food for consumption on the premises.

 

Miscellaneous Items

Delivering Alcohol

State law prohibits on/off-sale licensees from making any delivery of alcoholic beverages outside of the premises described in the alcohol license unless they have obtained an off-sale delivery license.

 

Kegs

Businesses that sell kegs are required to maintain a record of the purchaser's name and address for one year. Businesses must have a method of identification for the keg, but the identification cannot be permanent or damaging to the structure of the keg.

 

Alcohol Tax Online Forms


Alcohol Training Programs

The following Alcohol Training Programs are approved by the South Dakota Department of Revenue. The Department has not approved each variation of these programs. To determine whether the program you are considering attending is approved by the Department consult with the contact people listed for each program or with the Department of Revenue.

For more information, contact Health Communications, Inc. at 1 (800) 438-8477.

Provides a Responsible Alcohol Server Training Course (for both on and off premise) offered online. For more information, contact Professional Server Certification Corporation at (605) 427-2000 or 1 (800) 247-7737.

For more information, contact the South Dakota Retailers Association at 1 (800) 658-5545.

For more information, contact Skillsoft at 1 (866) 754-5435

For more information, contact the Licensed Beverage Dealers of South Dakota at 1 (800) 721-1789.

For more information, contact Nicole M. Seymour with Health Communications, Inc. at (703) 524-1200 or 1 (800) 438-8477.

Alcohol Laws & Regulations

See legal age restrictions, serving hours and other laws governing businesses with sale of alcohol in South Dakota.

Alcohol For Individuals

Information laws, regulations and South Dakota supplier information for individuals.