Arizona

The Arizona Department of Liquor Licenses and Control (DLLC), authorized by Arizona Revised Statutes Title 4, is organized in three divisions: the Administration Division, the License Division and the Investigations Division. The director of the DLLC is appointed by and serves at the pleasure of the governor.

The Arizona State Liquor Board (ASLB) operates independently from the Department of Liquor Licenses and Control. Because the Board hears appeals and may overturn or amend decisions made by the Director of the Department of Liquor. Members of the ASLB are appointed by the Governor and confirmed by the Senate pursuant to A.R.S. §38-211 and §4-111(B). There are seven members appointed for three-year terms.

Laws & Rules:

• ARS Title 4 Alcoholic Beverages
• Arizona Administrative Code Title 19 – Department of Liquor
•  Title 4 Lawbook as of Oct 30, 2023
• ARS Title 42 – Taxation Chapter 3 Luxury Privilege Tax
• Arizona Administrative Code Title 15. Ch. 3 Department of Revenue – Luxury Tax Section

Required: Yes

Name: Out-of-State Producer License (Series 2)

Fee: $350 initial license, $120 renewals

Expiration: Nov. 30th of each year

Fingerprint Requirement for Out-of-State Licenses: The entity applying for an out-of-state license must submit a fingerprint card along with a $22.00 per card processing fee. Fingerprints must be on a FD-258 form and submitted in a tamper-proof envelope including the verification form completed by the fingerprint technician.

Out-of-State Producer License (Series 2):

• Allows an out-of-state winery or supplier of any size to ship an unlimited amount of wine to AZ liquor-licensed wholesalers.

The two license types below allow out-of-state wineries to sell to AZ liquored-licensed wholesalers with restrictions.

Out-of-State Winery License (Series 2L): 

• Allows a winery located outside of AZ to ship no more than 240 gallons (about 100 cases) of wine of their own production to AZ liquor- licensed wholesalers each year.
• The licensee must report its annual production gallonage to the Arizona Department of Liquor annually.

Out-of-State Farm Winery License (Series 2W):

• Allows a winery that produces no more than 40,000 gallons per calendar year to sell wine of its own production to AZ liquor- licensed wholesalers.
• Allows a winery that produces no more than 20,000 gallons per calendar year to sell wine of its own production to AZ liquor- licensed wholesalers, self-distribute and make direct-to-consumer sales to consumers in AZ.
• The licensee must report annual its production gallonage to the Arizona Department of Liquor annually.

Resources:

• Out-of-state Producer Application Kit (Series 02)
• E-Licensing
• Fingerprint form
• Fingerprints: Frequently Asked Questions
• Renewal Instructions

Required: No

Label registration and/or approval for wine products is not required.

Franchise Law: No

Exclusive Territories: Not Required

Arizona does not have a franchise law for wine.

Required: Yes – Series 2L & 2W only

Name: Annual Production Report -Series 2L & 2W 

Due Date: annually by January 31st

Pursuant to Laws 2017, Chapter 60, Section 9, A.R.S. § 42-3352, effective Aug. 9, 2017, out-of-state producers and manufacturers are no longer required to send in invoices with their liquor luxury tax returns to Arizona Department of Revenue (ADOR). Out-of-state producers and manufacturers are only required to maintain a copy of the sale invoice in their records. If ADOR needs this information at any time, it will reach out to the out-of-state producer or manufacturer for an invoice record.

Series 2L and 2W licensees must file an annual production gallonage report with the Arizona Department of Liquor.

Resources:

• Annual Shipment Report for Limited Out-of-state Producer (Series 2L)
• Annual Shipment Report for Out-of-State Farm Winery (Series 2W)
• efile Portal for Annual Production Report (Series 2L and 2W only)

Available: No

A salesperson’s license is not required.

Allowed: Yes

License: Required

License Fee: $300 initial license, $170 renewals

Label Registration: Not Required

Excise Tax: Required – monthly by the 20th

Reporting: Annual Production Report Required – annually by Jan. 31st  

An out-of-state winery that produces not more than 20,000 gallons of wine in a calendar year may obtain an Out-of-State Farm Winery (Series 2W) License that allows the license holder to do the following: self-distribute an unlimited amount of wine to licensed retailers, make unlimited on-site and off-site direct-to-consumer shipments and make sales to Arizona-licensed wholesale/distributor locations. An out-of-state producer, exporter, importer or rectifier must comply with the provisions of Title 4 (Arizona liquor law) in the same manner as an in-state licensee.

An Out-of-State Farm Winery licensee may only make sales and shipments of wine produced on premises into Arizona. Additionally, the holder of an Out-of-State Farm Winery license must file an annual production report with the Arizona Department of Liquor Licenses and Control by January 31st of the following year and pay Arizona excise tax directly to the Arizona Department of Revenue.

Please note that the holder of an out-of-state farm winery licensee must also collect and remit Arizona Transaction Privilege Tax (TPT) , similar to sales tax, on sales shipped directly to consumers in Arizona.

Resources:

• Out-of-state Farm Winery Application Kit (Series 2W)
• E-Licensing
• Annual Production Report 
• Craft Distilleries / Farm Winery / Microbrewery / Cider / Direct Shipment Licensee Return of Liquor Sold
• Liquor Luxury Tax Requirements

• Listing of Industry Advisories
• DLLC Quarterly Newsletters
• “Instant FAQ” and Guidance Documents
• General FAQ
• 3rd-Party Promotions
• Sampling
• Glossary of Terms
• Arizona Luxury Tax Ruling LTR 20-3 (addresses taxation of RTD beverages)