Chapter Tax 8

Chapter Tax 8

ALCOHOL BEVERAGE TAXATION

Tax 8.01   Authority and purpose.

Tax 8.02   Definitions.

Tax 8.03   Tax forms and filing.

Tax 8.04   Liquor tax.

Tax 8.05   Refunds.

Tax 8.06   Inventory records.

Tax 8.07   Sales outside of Wisconsin.

Tax 8.08   Contract production.

Tax 8.09   Transfers of alcohol beverages between production premises and full-service retail outlet.

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Ch. Tax 8 Note Note: Chapter Tax 8 as it existed on December 31, 2025, was repealed and a new chapter Tax 8 was created effective January 1, 2026.

Tax 8.01 Tax 8.01 Authority and purpose. This chapter is promulgated pursuant to ss. 139.08 and 227.11 (2) (a), Stats., to carry out the secretary of revenue’s duties to administer alcohol beverage taxes under subch. I of ch. 139, Stats., and to collect and keep a record of alcohol beverage taxes collected.

Tax 8.01 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.02 Tax 8.02 Definitions. Unless otherwise provided, the words and phrases in this chapter have the same meanings as provided in s. 125.02 or 139.01, Stats.

Tax 8.02 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.03 Tax 8.03 Tax forms and filing.

Tax 8.03(1) (1) Forms. The department shall provide official forms for filing alcohol beverage tax returns, reports, and refund claims, under s. 139.01 (2r), Stats. Except as approved by the department, tax returns, reports, and refund claims may only be filed using these official forms.

Tax 8.03 Note Note: The official forms for filing alcohol beverage tax returns and refund claims are available on the department’s website at www.revenue.wi.gov/Pages/Form/AlcoholBeverageTax.aspx.

Tax 8.03(2) (2) Filing forms.

Tax 8.03(2)(a) (a) Forms filed with the department shall be submitted by filing them electronically by means prescribed by the department.

Tax 8.03(2)(b) (b) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:

Tax 8.03(2)(b)1. 1. Requests the waiver in writing.

Tax 8.03 Note Note: Written requests may be e-mailed to [e-mail], faxed to [phone], or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-107, PO Box 8900, Madison WI 53708-8900.

Tax 8.03(2)(b)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 8.03(2)(c) (c) In determining whether the requirement to file electronically causes an undue hardship, the secretary of revenue may consider any of the following factors:

Tax 8.03(2)(c)1. 1. Unusual circumstances that may prevent the person from filing electronically.

Example: The person does not have access to a computer that is connected to the internet.

Tax 8.03(2)(c)2. 2. Any other factor that the secretary determines is pertinent.

Tax 8.03 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.04 Tax 8.04 Liquor tax.

Tax 8.04(1) (1) Purpose. This section clarifies the tax liability on all sales of intoxicating liquor shipped into Wisconsin under s. 139.06 (1) (b), Stats., including foreign country imports.

Tax 8.04(2) (2) Imposition. All intoxicating liquor, including wine, shipped to a permittee located in Wisconsin shall be sold with the tax imposed under s. 139.03, Stats., included in the selling price except as provided in pars. (a) to (d):

Tax 8.04(2)(a) (a) Intoxicating liquor may be sold without tax if sold and shipped in bulk to a rectifier or winery. The tax liability shall be incurred by the permittee doing the rectifying and bottling of the intoxicating liquor at the time of the first sale in Wisconsin.

Tax 8.04(2)(b) (b) Intoxicating liquor may be sold without tax if sold and shipped to a Wisconsin wholesaler permittee located in Wisconsin if the shipment is from a foreign country and the Wisconsin wholesaler permittee is the importer of record as recorded on the U.S. customs document. However, if the importer of record is the holder of an out-of-state shipper’s permit, the tax is due from the out-of-state shipper on the shipment of intoxicating liquor into Wisconsin regardless of whether the shipment is released from U.S. customs bond within or outside Wisconsin.

Tax 8.04(2)(c) (c) Intoxicating liquor may be sold without tax if the liquor is destined to be shipped outside Wisconsin in interstate commerce and is properly labeled as “interstate merchandise.”

Tax 8.04(2)(d) (d) Intoxicating liquor may be sold without tax if sold and shipped to any of the following types of permit holders:

Tax 8.04(2)(d)1. 1. Sacramental wine permittees.

Tax 8.04(2)(d)2. 2. Wholesale alcohol permittees, but only if the alcohol shipped is at least 190 proof.

Tax 8.04(2)(d)3. 3. Medicinal alcohol permittees.

Tax 8.04(2)(d)4. 4. Industrial alcohol permittees.

Tax 8.04(2)(d)5. 5. Industrial wine permittees.

Tax 8.04 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.05 Tax 8.05 Refunds.

Tax 8.05(1) (1) Destruction or return of Alcohol beverages in Wisconsin.

Tax 8.05(1)(a) (a) A brewery, brewpub, manufacturer, rectifier, winery, or wholesaler properly authorized by Wisconsin who possesses alcohol beverages in sealed containers, whole cases, or full kegs that are spoiled or unfit to drink may file a claim for a tax refund under s. 139.10, Stats., with the department.

Tax 8.05(1)(b) (b) A claimant of a tax refund shall provide a written notice to the department of intent to destroy the beverages at least 10 days prior to destroying such beverages.

Tax 8.05(1)(c) (c) The department, upon receipt of the written notice of intent to destroy the beverages, may inspect the beverages prior to destruction by notifying the claimant prior to the expiration of the 10-day period.

Tax 8.05(1)(d) (d) If the department does not notify the claimant of its intent to inspect under par. (c) before the end of the 10-day period, the claimant may destroy the beverages and file a claim for refund. The claimant shall file the claim for a tax refund in the form and manner provided by the department.

Tax 8.05(2) (2) Returns to an out-of-state source.

Tax 8.05(2)(a) (a) A brewery, brewpub, manufacturer, rectifier, winery, or wholesaler authorized by Wisconsin, who possesses alcohol beverages in sealed containers, whole cases, or full kegs that are spoiled or unfit to drink, may file a written notice to the department of intent to return such beverages to an out-of-state source at least 10 days prior to shipping the beverages.

Tax 8.05(2)(b) (b) The department, upon receipt of the notice of intent under par. (a), may inspect the alcohol beverages prior to shipment by notifying the claimant prior to the expiration of the 10-day period. If the department does not notify the claimant of its intent to inspect before the end of the 10-day period, the alcohol beverages may be returned, and the out-of-state permittee may file a claim for a tax refund under s. 139.10, Stats. or take an appropriate amount of credit against taxable shipments into Wisconsin on their applicable alcohol beverage tax return for that month.

Tax 8.05 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.06 Tax 8.06 Inventory records.

Tax 8.06(1) (1) This section clarifies recordkeeping requirements for purposes of compliance with s. 139.11, Stats.

Tax 8.06(2) (2) A Wisconsin brewery, brewpub, manufacturer, rectifier, wholesaler, or winery may maintain separate inventory of untaxed and taxed alcohol beverages on the same premises. Detailed records shall be maintained that shows evidence of the beverages placed into and removed from untaxed inventory. Failure to maintain these records or to properly segregate the untaxed inventory from the taxed inventory shall make the untaxed inventory immediately subject to the provisions of ss. 139.02 to 139.06, Stats.

Tax 8.06(3) (3) Invoices and records maintained under ss. Tax 7.08 and 7.18, shall be available for inspection during normal business hours by representatives of the department for purposes of compliance with this section and s. 139.11, Stats.

Tax 8.06 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.07 Tax 8.07 Sales outside of Wisconsin.

Tax 8.07(1) (1) The tax imposed under ss. 139.02 and 139.03, Stats., upon the sale of intoxicating liquor and fermented malt beverages within Wisconsin does not apply to alcohol beverages that are shipped from within Wisconsin to a point outside Wisconsin, under s. 139.04 (5), Stats. Brewers, brewpubs, manufacturers, rectifiers, wineries, and wholesalers need not pay the tax on alcohol beverages that are sold and shipped outside Wisconsin. The burden of proof, however, is at all times upon the Wisconsin brewer, brewpub, manufacturer, rectifier, winery, or wholesaler to show that the alcohol beverages actually went into interstate commerce.

Tax 8.07(2) (2) Wisconsin brewers, brewpubs, manufacturers, rectifiers, wineries, and wholesalers claiming exemption from the tax imposed under ss. 139.02 and 139.03, Stats., on the ground that shipments or deliveries were made in interstate commerce shall certify, under oath, one of the following:

Tax 8.07(2)(a) (a) That the person receiving the shipment or delivery outside Wisconsin at the address stated in the shipping documents is authorized in the foreign state to receive the shipments or deliveries at the stated address.

Tax 8.07(2)(b) (b) That the Wisconsin brewer, brewpub, manufacturer, rectifier, winery, or wholesaler has possession of bills of lading, waybills, freight bills or other evidence of shipment issued by common carriers operating in Wisconsin and that such shipments or deliveries were made to persons having an actual licensed place of business in the foreign state.

Tax 8.07(3) (3) No Wisconsin brewer, brewpub, manufacturer, rectifier, winery, or wholesaler shall receive an exemption from the tax imposed under ss. 139.02 and 139.03, Stats., on the sale of intoxicating liquor or fermented malt beverage shipped into any state or territory if the importation or sale of such alcohol beverage is prohibited by state or federal law. No exemption shall apply to alcohol beverages sold and shipped into other states if the purchaser or recipient of alcohol beverages cannot lawfully purchase or receive the alcohol beverages under the laws of the other state.

Tax 8.07 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.08 Tax 8.08 Contract production.

Tax 8.08(1) (1) This section applies to contract production agreements entered between a producer and an out-of-state recipe supplier under s. 125.21 (3) (b) 3., Stats. All other contract production agreements are governed by s. 125.21 (3), Stats.

Tax 8.08(2) (2) If the alcohol beverages created under a contract production agreement between parties outlined in s. 125.21 (3) (b) 3., Stats. is sold into interstate commerce, then s. Tax 8.07 shall apply, and the contract producer shall report the production in the report filed under s. 139.11 (2), Stats.

Example: Oregon Distillery, an out-of-state recipe supplier, contracts with Wisconsin Distillery to bottle intoxicating liquor for Oregon Distillery. All finished intoxicating liquor is shipped directly from Wisconsin Distillery to Oregon Distillery’s out-of-state location, with no product remaining in Wisconsin. In this case, Wisconsin Distillery shall file the tax return for the bottled intoxicating liquor to show production, but no excise tax is due since all product is shipped into interstate commerce. Oregon Distillery is not required to hold any Wisconsin production permit.

Tax 8.08 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.

Tax 8.09 Tax 8.09 Transfers of alcohol beverages between production premises and full-service retail outlet. Alcohol beverages removed from the production premises for transfer to a full-service retail outlet established by a brewer under s. 125.29 (7), Stats., a manufacturer or rectifier under s. 125.52 (4), Stats., or a winery under s. 125.53 (3), Stats., is a removal for consumption or sale and the tax under s. 139.02 or 139.03, Stats., shall be imposed at the time of transfer.

Tax 8.09 History History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.