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Illinois

Wholesale Laws for Illinois

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Last Updated: May 15, 2023

Summary

The Illinois Liquor Control Commission (ILCC) oversees the manufacture, distribution and sale of alcoholic beverages, along with licensing, compliance and enforcement issues. The ILCC’s Chairman and six commissioners are appointed to a six-year term by the Governor and require confirmation by the Illinois Senate.

Laws & Rules:

Supplier Licensing

Required: Yes

Name: Non-Resident Dealer’s Liquor License

Fee:

  • $350 – manufacturers producing less than 500,000 gallons per year
  • $1,500 – manufacturers producing more than 500,000 gallons per year

Expiration: 1 year from issue date

A Non-Resident Dealer’s License allows the shipment and warehousing of alcoholic liquor in the State of Illinois from any point outside of this State, and sales of alcoholic liquor to Illinois-licensed distributors and to no one else in this State; provided the non-resident dealer registers with the Illinois Liquor Control Commission each and every brand of alcoholic liquor it proposes to sell to Illinois licensees during the license period.

Non-Resident Dealer’s Licenses may be renewed online through the MyTaxIllinois portal on the ILCC website. The processing of renewals generally takes one to five business days. The online renewal fee for wineries producing less than 500,000 gallons per year is $250 and $1,200 for manufacturers producing 500,000 gallons or more per year.

Resources:

Product Registration

Required: Yes

Fee: No Fee

Approval: 7 days

Expiration: Does Not Expire

Revision Required: Tax Class, COLA

Brand labels may be registered online through your  MyTax.Illinois.gov account. In 2021 the online brand registration process was updated to allow for licensees to enter multiple product/brand registrations in one entry.

A Withdraw of Registration form is needed to withdraw the right to sell or distribute alcoholic liquors at wholesale within the State of Illinois.

Labels registered and approved for direct shipment to IL consumers must be resubmitted and approved for wholesale distribution.

Questions regarding brand label registration may be sent to REV.ILCC.BRANDREGISTRATION@ILLINOIS.GOV.

Resources:

Franchise "Monopoly Protection" Law

Franchise Law: No

Exclusive Territories: Not Required

Each manufacturer shall designate a distributor(s) for the sale of its product(s) to retailers within a designated geographic territory (235 ILCS 5/5-1(a-1) and 5/6-9). The name of each distributor to whom such manufacturer has granted the right to sell its product must be registered with the ILCC.

The manufacturer of an alcoholic product other than beer may designate more than one distributor within a geographic territory (235 ILCS 5/6-9).

A Withdraw of Registration form is needed to withdraw the right to sell or distribute alcoholic liquors at wholesale within the State of Illinois.

 

Supplier Reporting Requirements

Required: Yes

Name: Schedule L, Out-of-State Sellers’ Shipment Report

Due Date: Monthly, by the 15th

A Schedule L report must be filed even if no shipments were made during the reporting period. Reports may be printed and mailed to the Department of Revenue or filed electronically.

Resources:

Sales Representative Licensing

Available: Yes

Fee: No Fee

Expiration: 1 year from issue date

Agents, representatives or persons acting on behalf of a Non-Resident Dealer liquor license holder in Illinois that sell or discuss pricing terms of alcoholic liquor must register with the Commission. Registration is completed by submitting the Application for Registration – Manufacturer’s Registered Agent and Statement of Representation – Registration of Manufacturer’s Agent forms.

Resources:

Self-Distribution

Allowed: Yes

License: Required

License Fee: $350 initial license, $250 renewals

License Expiration: 1 yr from issue date

Label Registration: Required

Excise Tax: Required (In addition to the state excise tax, the Chicago liquor tax must be collected and remitted on sales to Chicago retailers, effective July 1, 2020.)

Reporting: Required

An instate 0r out-of-state winery that produces less than 25,000 gallons per year may apply for a self-distribution exemption. The self-distribution exemption form must be submitted as an attachment to the IL Direct-to-Consumer Out-Of-State Winery Shipper’s License application. The self-distribution exemption allows for the sale of not more than 5,000 gallons of wine to retail licensees per year.

Effective July 1, 2020, any Illinois Winery Shipper’s Licensee that ships wine to a consumer at a Chicago address is required to register with the City of Chicago Department of Finance and collect and remit the city liquor tax. Licensees outside of Chicago are advised to wait to submit a new account registration application until after they have made a sale to a consumer in Chicago.

An out-of-state maker of wine must have a valid Illinois winery shipper’s license prior to the issuance of a self-distribution exemption and at all times while self-distributing.

Resources:

Trade Practice Advisories

Illinois Liquor Control Commission
300 W. Jefferson St., Suite 300
Springfield, IL 62702
Phone: 217-782-2136
Fax: 217-524-1911

Illinois Department of Revenue
PO Box 19019
Springfield, IL 19019
Phone: 217-782-6045
Alt. Phone: 217-782-3336

 

Recent Compliance Alerts

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This information is intended for winegrower licensees only. All information above is provided as an informational aid and is not legal advice. Data may be out-of-date or incomplete. Please consult a lawyer before taking any action.