North Dakota

North Dakota requires out-of-state sellers directly shipping alcoholic beverages to individuals in the state to obtain a direct shipping license from the State Tax Commissioner and pay an annual fee of $50.

• Prior to making shipments into North Dakota, a winery must obtain a Direct Shipper license and a Sales and Use Tax Permit.
• A return form will be mailed for all paper filers and an email reminder for all TAP filers based on the filing frequency assigned at the time of registration. A return must be filed for each reporting period even if no sales were made or no tax is due.
• A winery that has been issued a Direct Shipper license is required to collect local sales and use taxes even if the licensee does not have a business presence, such as employees or deliveries using the licensee’s own vehicles, within the local taxing jurisdiction.
• A direct shipper shall label all containers of alcoholic beverages shipped directly to an individual in this state with conspicuous words “SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.”

A fulfillment warehouse that intends to prepare shipments into ND on behalf of a direct shipper licensee must first receive a logistics shipper license from the ND Tax Commission and pay an annual fee of $100. Licensed logistics shippers are required to file monthly reports. “Licensed logistics shipper” means a person that provides fulfillment house services, including warehousing, packaging, distributing, order processing, or shipment of alcoholic beverages on behalf of a licensed direct shipper and by way of a licensed alcohol carrier.

A direct shipper license is responsible for ensuring that any fulfillment warehouse they use holds a logistic shippers permit, and must provide the name and license number of their logistics shipper(s) on their Annual Liquor Tax Report.