Tax 7.19 Returns of alcohol beverages. (1) Returns by individual consumers to retailers. Once a sale has been made by a retailer to an individual consumer, no retailer may accept a return of alcohol beverages. Nothing in this subsection prohibits a retailer from issuing a refund to an individual consumer for an alcohol beverage.
(2) Returns by retailers. (a) Except as provided in par. (b), persons identified in Tax 7.08(6)(a) to (d) may not accept returns of alcohol beverages from retailers.
(b) Persons identified in Tax 7.08(6)(a) to (d) may replace expired, spoiled, or recalled alcohol beverages sold to retailers as long as the beverages are replaced with an identical brand, flavor, quantity, and size, and the replacement transaction is documented on an invoice provided to the retailer and in compliance with Tax 7.08.
Tax 7.20 Retail premises. (1) Alcohol beverage licenses shall be issued for a fixed premises describing land or buildings.
(2) No alcohol beverage license shall be issued to a person, unless the person is the owner, lessee, or has written permission from the owner for use of premises to be licensed. Such person must have complete control over the premises to be licensed which is not shared by another person.
(3) For purposes of s. 125.51(8), Stats., a licensed premises is not a connecting premises if it is completely separated from another licensed premises by floor-to-ceiling walls and has its own primary entrance to the premises. SUBCHAPTER II – FERMENTED MALT BEVERAGES
Tax 7.31 Restrictions on dealings between brewers, brewpubs, wholesalers, and retailers. (1) Definitions. In this section and in s. 125.33, Stats.: (a) “Event" means any activity, game, contest, tournament, or entertainment that is conducted on that part of a campus premises where the sale of fermented malt beverages takes place or premises operated under a retail Class “B" fermented malt beverage license or permit or promoted by a campus operation for the sale of fermented malt beverages or retail Class “B" fermented malt beverage licensee or permittee. (b) “Sign" means a graphic display, containing letters, words, symbols, numerals, shapes, forms or pictures, including all component parts and labor necessary to assemble the unit, which has no value or use except to advertise or identify a product or a place of business or an event or any combination of these. The value of the sign is determined by the original cost of acquisition if it is purchased by a brewer, brewpub, or wholesaler.
(c) “Sponsor" means to underwrite in whole or in part the cost of an event by providing signs, advertising in score cards or on scoreboards and fences or by providing equipment, prizes, trophies, entertainment, or other things of value.
(2) Brewer's permit restriction and exceptions. (a) Restriction. No brewer, brewpub, or wholesaler of fermented malt beverages may sponsor any event conducted on that part of a campus premises where the sale of fermented malt beverages takes place or premises operated under a retail Class “B" fermented malt beverage license or permit or promoted by a campus operation for the sale of fermented malt beverages or retail Class “B" fermented malt beverage licensee or permittee.
(b) Exceptions. However, a brewer, brewpub, or wholesaler may do any of the following:
1. Purchase advertising or other services or rights for a fair consideration from any corporate Class “B" retail fermented malt beverage licensee which is a member of a regularly established athletic league if the licensee derives more than 50 percent of its gross income from the ownership, maintenance and operation of a professional athletic team which plays a regular schedule of games and which derives more than 50 percent of its income from the sale of admissions to the team's games.
2. Enter into contracts or other arrangements directly with nonlicensed 3rd parties to sponsor an event or sponsor radio or television broadcasts, to make payment for advertising, or to provide other services or things of value if all of the following conditions are met:
a. No payments, services or other things of value are made directly or indirectly by the brewer, brewpub, or wholesaler to a Class “B" licensee.
b. The payments, services, or other things of value are not contingent upon the event being held at any premises designated by the brewer, brewpub, or wholesaler.
c. The sponsor's products are not required to be sold or served at the premises selected by the nonlicensed 3rd party.
3. Permit refrigerated trucks or trailers to remain on Class “B" licensed premises for the storage of beer during an event. At the conclusion of the event the brewer, brewpub, or wholesaler may issue one invoice to the Class “B" licensee for the beer actually used at the event.
(3) Examples of prohibited activities. Subject to the limitations in sub. (2) (a) and (b), examples of conduct prohibited by s. 125.33 (1), Stats., and this section include: (a) A brewer, brewpub, or wholesaler may not sponsor an association, team or other organization for a campus or Class “B" licensee or permittee or have a Class “B" licensee, corporate officer or partner who is part of an association, team or other organization it sponsors. (b) A brewer, brewpub, or wholesaler may not hire persons to provide a concert or music at a Class “B" licensed premises.
SUBCHAPTER III – INTOXICATING LIQUOR
Tax 7.41 Size of distilled spirits containers and standards of fill. (1) Except as provided in sub. (4), no person may sell or offer for sale distilled spirits in a container larger than 1.75-liter (59.1752 fluid ounce) capacity, pursuant to s. 125.03(2), Stats. (2)(a) For containers other than those described in par. (b), and except as provided in sub. (4), no person may sell or offer for sale, any distilled spirits in any container size other than the following:
1. 1.75 Liters.
2. 1.00 Liter.
3. 900 mL.
4. 750 mL.
5. 720 mL.
6. 700 mL.
7. 375 mL.
8. 200 mL.
9. 100 mL.
10. 50 mL.
(b) For metal containers that have the general shape and design of a can, that have a closure that is an integral part of the container, and that cannot be readily reclosed after opening, and except as provided in sub. (4), no person may sell or offer for sale, any distilled spirits in any metal container size other than the following:
1. 355 mL
2. 200 mL
3. 100 mL
4. 50 mL
(c) Except as provided in par. (d) and sub. (4), no person may sell or offer for sale, any wine in any container size other than the following:
1. 3 L
2. 1.5 L
3. 1 L
4. 750 mL
5. 500 mL
6. 375 mL
7. 355 mL
8. 250 mL
9. 200 mL
10. 187 mL
11. 100 mL
12. 50 mL
(d) Notwithstanding par. (c), wine may be sold or offered for sale in containers of 4 liters or larger if the containers are in quantities of whole liters.
Example: Wine may sold in quantities of 4 liters, 5 liters, 6 liters, etc.
(3) Except as provided in sub. (4), possession of a container that is in violation of sub. (1) or (2) by a licensee or permittee is prima facie evidence that the container is offered for sale.
(4)(a) Manufacturers and rectifiers may have in their possession distilled spirits in containers greater than 1.75 liters in size for purposes of manufacturing or rectifying or for sale to other manufacturers, rectifiers, or wineries in Wisconsin or in interstate commerce.
(b) This section does not apply to “Class B” licensees selling mixed drinks from a bulk container that is in compliance with s. 125.51(3)(bg), Stats. (c) This section does not apply to alcohol intended for industrial, medicinal, scientific, or mechanical purposes.
Tax 7.42 Empty containers. (1) The regulations in this section are created for purposes of compliance with s. 125.68(8), Stats. (2) Any person who sells or offers for sale distilled spirits, including any agent or employee of such person, shall, as soon as such container is emptied, scratch, deface or mutilate any label attached thereto in such a manner that the label cannot be used. The requirement that labels be defaced shall not apply to labels placed on ceramic commemorative containers and other uniquely designed decanters.
(3) No person who sells or offers for sale, distilled spirits, including any agent or employee of such person, shall fill, or cause to be filled, any container previously used to store distilled spirits. Such containers, except ceramic commemorative containers and other uniquely designed decanters and containers retained for delivery or collection for recycling through a process which will result in rendering them unusable as containers, shall be broken and destroyed immediately upon being emptied of their original contents.
(4) Empty liquor containers retained for recycling purposes shall have all labels scratched, defaced, or mutilated, shall be stored in containers marked “For recycling only," and shall be removed from any retail licensed or permitted premises within 10 days.
Tax 7.43 Small cooperative wholesalers. (1) Purpose. The purpose of this section is to set forth the requirements for the creation and operation of small cooperative wholesalers, under s. 125.545, Stats. (2) Bylaws for cooperative wholesalers. Bylaws filed by a cooperative wholesaler shall contain all the following information:
(a) Reasonable membership requirements that recognize the cooperative wholesaler's duty to negotiate in good faith with manufacturers, rectifiers, and wineries that seek to sell products and to diligently ensure that distribution channels are available for the sale of intoxicating liquor from small wineries and small manufacturers.
(b) A statement that any applicants meeting such requirements be admitted into the cooperative.
(c) A description of the rights and responsibilities of members.
(d) The process for the election of the board of directors.
(e) The plans for a membership meeting.
(f) Whether the cooperative will allow nonmembers to purchase preferred stock.
(3) Submission of application for cooperative wholesalers. The bylaws created under s. 125.545(3)(a)(1), Stats., and that contain the information outlined in sub. (2), shall be submitted to the division with the application for a wholesaler's permit. (4) Interest restrictions. A cooperative wholesaler may provide compensation for reasonable expenses of manufacturer, rectifier, and winery owners and employees acting as volunteers in the sale and distribution of intoxicating liquor by the cooperative. Reasonable expenses may not include compensation for time spent acting as a volunteer.
(5) Renewal of cooperative wholesaler permit. The cooperative wholesaler shall provide the division with a biennial report with its application for wholesaler permit renewal. The biennial report shall summarize the sales quantity and product data for all intoxicating liquor industry trade goods sold by the cooperative wholesaler.
Tax 7.44 Salesperson. (1) No person shall solicit orders for wholesale sales of intoxicating liquor for future delivery on behalf of a manufacturer, rectifier, winery, or wholesaler unless the person first holds a salesperson's permit under s. 125.65, Stats. Any salesperson actively engaging in such sales or solicitation shall have, at all times, a physical copy of the salesperson's permit issued by the division in their possession. (2) Samples of intoxicating liquor carried by salespersons shall be Wisconsin tax paid merchandise complying with requirements under s. 139.06, Stats. (3) A salesperson's permit authorizes the soliciting of orders of selling for future delivery at wholesale. Retail sales are prohibited.
Tax 7.45 Procedure for apportionment of costs of administration of s. 125.69(4)(e) , Stats. (1) All direct and indirect costs of administering s. 125.69 (4)(e), Stats., including costs of supplies, equipment, rent and clerical, investigational, administrative and supervisory help, shall be borne by the intoxicating liquor permittees. The aggregate of such costs shall be determined by the division semiannually and shall be prorated by it among the permittees at any time licensed in each period covered. Each such permittee shall be billed its share of such aggregate costs, and such bill shall be paid within 10 days of the billing date. (2) The costs of administration for each 6-month period shall be prorated among the permittees licensed in such period on the basis of estimated dollar sales to retailers based upon reported gallons and liters of wine and liquor sold to retailers by each permittee. Whenever the sales of a permittee have not been reported to the division, the division shall estimate such sales for purposes of such proration.
Tax 7.46 Samples. (1) Manufacturers, rectifiers, and wineries shall attach a memo invoice stating the quantity and package size by type and brand when shipping to their representatives, intoxicating liquor into this state for the purpose of free samples under s. 125.69(9), Stats. (2) Any out-of-state manufacturer shall possess a permit under s. 125.58, Stats., prior to shipping into this state any liquor samples to their representatives. (3) The memo invoice in sub. (1), shall bear the words, “Applicable state tax paid. Not for resale." All sample liquor is subject to the Wisconsin liquor excise tax. The tax paid by the out-of-state shipper shipping or causing the liquor to be shipped into this state shall be remitted no later than the 15th day of the month following the shipment.
