Ohio

In Ohio, the Department of Commerce Division of Liquor Control is responsible for controlling the manufacture, distribution, licensing, regulation, and merchandising of beer, wine, mixed beverages, and spirituous liquor as the law is outlined in the Ohio Revised Code Chapters 4301. and 4303.

In addition, the Division oversees the sale and distribution of spirituous liquor in Ohio through contract agency stores.

Laws & Rules:

• OH Liquor Code
• Liquor Division Rules
• Ohio Wine Tax Rates
• Division of Liquor Control – Updates to Legislation

Required:  Yes

Name: Supplier Registration – Out of State Supplier of Wine (Form 1551)

Fee: 

• $300 – produce 250,000 gallons or more
• $76 – produce less than 250,000 gallons, plus $100 initial application fee

Expiration:  Sept. 30th of each year

The fee for a wine supplier registration is $76 for wineries producing less than 250,000 gallons per year, and $300 for wineries producing more than 250,000 gallons per year. There is an additional $100 non-refundable application fee. Applicants must submit a copy of their federal basic permit and register labels that will be distributed for sale Ohio.

Starting in 2022, all Supplier Permits expire October 1st of each year with no refund of the fee for any unused portion or proration. Previously registered suppliers had to renew annually by June 30th.

Resources:

• Supplier Application
• Territory Designation Form

Required:  Yes

Fee:  $50 per label, additional $5 per label technology fee if registered through PRO

Approval:  Approval times may vary, products registered online may be eligible for auto approval

Expiration:  Does Not Expire

Revision Required:  COLA change

Beginning March 13, 2023, product labels may be registered through Product Registration Online (PRO).

No alcoholic beverage products (0.5% or above) should be sold / distributed for sale in Ohio until a proper label registration has been filed with us and approval has been given.

Complete and submit a paper “Application for Product Label Registration”  (form DLC1511) or apply online through PRO.  A copy of the COLA. and one copy of the set of labels, if not displayed on the COLA, must be submitted with the application.

In addition, complete and attach “Territory Designation” (form DLC 1539) if registering a new brand.  A separate form must be completed for each wholesale distributor designated to distribute your products.

Resources:

• Product Registration Online (PRO)
• Ohio PRO Guide
• Application for Product/Label Registration (paper)
• Territory Designation Form

Franchise Law:  Yes

Exclusive Territories:  Required

Please review the law in its entirety and consult legal counsel prior to taking any action.

A brand may only be sold by one wholesaler in a particular territory.

Protections arise after 90-day sales relationship. Brand successors bound – if a distributorship experiences a change in ownership the distributor’s exclusive rights to sell brands transfer to the new owner of the distributorship.

With limited exception, 60 days notice and “just cause” is required for termination. Generally, just cause must relate to wholesaler deficiencies. Examples of what “just cause” does not include are restructuring of the manufacturer’s business, sale or transfer of a brand by the manufacturer.

The wholesaler may bring civil action for damages and injunctive relief.

Citations:

• Ohio Revised Code § 1333.82 to 1333.87
• Territory Designation Form

Required:  Yes

Name:  Invoice Report

Due Date:  Monthly, by the 15th

Send two copies of invoices to the Department of Taxation, or file the invoice information electronically in a format prescribed by the Department to excisealcohol@tax.state.oh.us.

Resources:

• Alcoholic Beverage Reporting Changes For Out-of-State Wine Suppliers; Updated February, 2019

Available:  Yes

Fee:  $50

Expiration:  2 years from issue date

A “Solicitor” is defined as an individual who solicits sales of alcoholic beverages on behalf of a manufacturer, supplier, wholesale distributor, or broker, and generally does not take possession of the beverages.

Solicitor Registration is required for any individual acting as an agent, solicitor, trade marketing professional or salesperson for any manufacturer, supplier, wholesale distributor, trade marketing company or broker of beer, wine, mixed beverages, or spirituous liquor which products are to be sold or produced in the state of Ohio. A Solicitor Registration must be renewed every two years.

This registration is also required for all individuals soliciting the Ohio Division of Liquor Control and Ohio permit holders.

Resources:

• Application for Solicitor Registration (new and renewals)
• O.R.C. §4303.25 Prohibited acts – sales representatives to be registered.
• O.A.C. 4301-2-01 Registered solicitors.

Allowed:  Yes

License:  Required

License Fee:  $25, plus $100 one-time application fee

License Expiration:  Oct. 1st of each year

Label Registration:  Required

Excise Tax:  Required

Reporting:  Required

A provision included in the state’s budget bill (2021 HB 110) removed the 250,000 gallon annual production cap for self-distribution. Effective Sept. 30, 2021, a winery of any size is eligible to apply for a B-2a permit. The B-2a permit allows a winery to sell that is also registered with the Division as a Wine Supplier to sell wines of their own production directly to licensed Ohio retail permit holders, provided the product/brand is NOT already assigned a territory through an Ohio wholesale distributor.

In addition to registering as a Wine Supplier, a B-2a permit holder must register each product sold in Ohio and pay a $50.00 product registration fee for each product.

Resources:

• Direct Shipping and Self-Distribution Overview
• Application for a B-2A Permit
• Ohio Wine and Mixed Beverage Tax Return for A-2, B2a and/or S Permit Holders
• Instructions for Completing the Ohio Wine and Mixed Beverage Tax Return
• Cuyahoga County Wine & Mixed Beverage Tax Return (ALC 210)
• O.R.C. §4303.071 (effective Sept. 30, 2021)

• Guides & Resources
• Trade Practice Reminders Memo (April 11, 2019)
• Permit Classes
• Allowable Sample Tasting Events