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Wholesale Laws for North Dakota

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Last Updated: Aug. 25, 2020

Summary

Alcoholic beverage wholesalers, domestic wineries, microbrew pubs, alcoholic beverage manufacturers such as regular wineries or breweries located in North Dakota, and out-of-state direct shippers, must obtain licenses from the Tax Commissioner.

The licensing of alcoholic beverage retail businesses, and the enforcement of the retail liquor statutes, is under the jurisdiction of the Attorney General’s Office.

Laws & Rules:

Supplier Licensing

Required:  Yes

Name:  Alcoholic Beverage Supplier License

Fee:  No Fee

Expiration:  Perpetual

Effective August 1, 2005 all suppliers selling or shipping alcoholic beverages to liquor and beer wholesalers in North Dakota must obtain a license with the Tax Commissioner before doing business in North Dakota. This license does not require a fee.

Resources:

Product Registration

Required:  No

The requirement that alcoholic beverage brand labels must be registered with the Tax Commissioner before the beverage may be sold in or shipped to North Dakota was repealed by the 2005 Legislature.

Franchise "Monopoly Protection" Law

Franchise Law:  No

Exclusive Territories:  Not Required

North Dakota does not have a franchise law for wine.

Supplier Reporting Requirements

Required:  Yes

Name:  Suppliers Monthly Liquor Report Of Sales To ND Wholesalers

Due Date:  Monthly, by the 30th

File Supplier’s Monthly Liquor Report (Schedule A) on or before the last day of the month following the month in which the sale was made. This report must be filed electronically.

Resources:

Sales Representative Licensing

Available:  No

A salesperson’s license is not required.

Self-Distribution

Allowed:  Yes

License:  Required

License Name:  Out-of-State Winery License to Sell Direct to North Dakota Retailers

License Fee:  No Fee

License Expiration:  Dec. 31st of each year

Label Registration:  Not Required

Excise Tax:  Required

Reporting:  Required

HB 1190 amended Section 5-01-20 of the North Dakota Century Code, relating to self-distribution privileges for licensing wineries, effective Aug. 1, 2019.

Beginning Aug. 1, 2019, only a winery that produces less than 25,000 gallons of wine each year may sell and deliver, onsite or offsite, the wine it produced directly to licensed retailers without selling through a licensed wholesaler. Prior to Aug. 1, 2019, the annual production volume was 50,000 gallons per year.

A licensed winery either use their own trucks, a common carrier, or contract with a wholesaler for such delivery.  Shipments delivered by a winery’s equipment, trucks, and employees are limited to no more than 4,500 cases per year.  Individual shipments via common carrier may not exceed 3 cases per day to a retailer, and may not exceed 3,500 cases annually in the aggregate. Retailers are not allowed to transport wine purchased directly from wineries.

An “Out-of-State Winery License to Sell Direct to North Dakota Retailers” is required and alcohol taxes must be paid on all wine sold to retailers. The Commissioner has designated “Schedule N” as the winery liquor tax report form to be used for reporting and paying tax on wine sold direct to North Dakota Retailers.

Resources:

Trade Practice Advisories

North Dakota Office of State Tax Commissioner
Alcohol Tax Section

600 E. Boulevard Ave., Dept. 127
Bismarck, ND 58505-0599
Phone: (701) 328-2702
Fax: (701) 328-3700

 

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.