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Wisconsin Department of Revenue

 Beer Tax

  1. What definitions apply for purposes of the Wisconsin beer tax law?
  2. What is the tax rate on beer?
  3. Who must obtain a license or permit to handle beer?
  4. Who pays the beer tax?
  5. How is the beer tax paid?
  6. Where are the beer tax returns filed?
  7. When are the beer tax returns due?
  8. Is any beer exempt from the beer tax?
  9. Who may receive a refund of beer tax paid?
  10. How do I correct a beer tax return that I previously filed?
  11. Am I subject to interest or penalties if I file an incorrect beer tax return?
  12. Should I notify the Department of Revenue if the business has a change to its name, address, or ownership or if the business ceases operating in Wisconsin?
  13. How can I obtain additional information or forms relating to the beer tax?
  14. What records should I keep for Wisconsin tax purposes, and how long should I keep them?
  1. What definitions apply for purposes of the Wisconsin beer tax law?

    • Beer - Any beverage made by the alcohol fermentation in water of barley malt and hops, with or without grains and sugar, containing 0.5% or more of alcohol by volume [sec. 125.02(6), Wis. Stats.]. The term "beer" is used in place of "fermented malt beverages," which is the term for beer in Wisconsin law.

    • Person - In Wisconsin's alcohol beverage law, "person" means a natural person, sole proprietorship, partnership, limited liability company, corporation, or association [sec. 125.02(14), Wis. Stats.].

    • Permittee - A person who holds an alcohol beverage permit issued by the Wisconsin Department of Revenue.

  2. What is the tax rate on beer?

    $2.00 occupational tax per a 31 gallon barrel [sec. 139.02(1), Wis. Stats.].

    Eligible producer tax credit - A brewer who produces less than 300,000 barrels of beer per year is eligible for a tax credit of $1.00 per barrel on the first 50,000 barrels subject to Wisconsin beer tax [sec.139.02(2), Wis. Stats.]. In determining a brewer's total production, all brands and labels of all production facilities regardless where located are combined.

    Inventory tax - Currently there is no statutory authority to impose an inventory tax on beer if the tax rate were to change.

  3. Who must obtain a license or permit to handle beer?

    No one may sell, manufacture, rectify, brew, or engage in any other activity relating to alcohol beverages without holding the appropriate license, permit, or authorization. Persons who want to obtain a beverage permit or license from the Department of Revenue should also contact their municipal clerk to see if there are any licenses they must obtain from the municipality.

    Retail licenses to sell alcohol beverages are issued for the most part by Wisconsin municipalities (towns, villages and cities) subject to state law.

    Any person who wants to deal in beer at the wholesale level in Wisconsin must obtain a permit from the Wisconsin Department of Revenue.

    Persons wanting a beverage permit must hold a Business Tax Registration (BTR) Certificate [sec. 73.03(50), Wis. Stats.]. The BTR certificate and beer permits are issued by the Excise Tax Section in Madison, (608) 261-6435. There is a one-time $20 charge for the BTR Certificate. This certificate is renewable every two years for $10. The BTR certificate and beer permits are valid until canceled by the permittee or revoked by the Department. A person need only obtain one BTR certificate regardless of the number of permits or licenses held with the Department.

    The following wholesale beer permits are issued by the Department:

    Types of Permits/Prefix Statute Fee Term of Permit
    Wisconsin brewery (B) sec. 125.29 none 2 years
    Wisconsin Brewpub (BP) sec. 125.295 none 2 years
    Wisconsin wholesalers and importers (WB) sec. 125.28 none 2 years
    Out-of-state shipper (FB) sec. 125.30 none 2 years
    Industrial beer (IFMB) sec. 125.275 none 2 years
    Wisconsin public warehouse (PW) sec. 125.19 $200 2 years

    The following retail beer permits are also issued by the Department:

    Types of Retail Permits/Prefix Statute Fee Term of Permit
    Sports club (BC) sec. 125.27 $200 2 years
    Vessel (BV) sec. 125.27 $200 2 years

    Permittees who purchase beer from out-of-state wholesalers that do not hold a permit with the Department may have their beer confiscated by the Department's Alcohol & Tobacco Enforcement Section [sec. 139.22, Wis. Stats.].

    Municipal license required - Any person who is a Wisconsin wholesaler must first obtain a beer wholesalers license from the local Wisconsin municipality. This license costs no more than $25 and is renewable annually on July 1 [sec. 125.28, Wis. Stats.].

    Security required - Persons who are responsible for paying the beer tax must have security (e.g., cash, bond) on file with the Department. The amount of security is equal to twice the person's estimated maximum monthly beer tax but not less than $1,000 nor more than $100,000 [sec. 139.05(4), Wis. Stats.].

    Revocation of permits - It is very important that permittees file their reports timely and pay any amount owing. Permittees with poor filing and/or payment records may have their permits revoked by the Department.

  4. Who pays the beer tax?

    The beer tax is paid by the following permittees to the Department [sec. 139.05(2), Wis. Stats.]:

    • Wisconsin breweries/brewpubs on all sales made in Wisconsin.

    • The Wisconsin wholesaler who imports beer into Wisconsin from a foreign country.

    • The out-of-state shipper who ships beer into Wisconsin from other states.

    Sports club and vessel permit holders - Persons holding these retail permits are not required to file beer tax returns with the Department. The tax on the beer they purchase in Wisconsin is paid at the wholesale level, not at the retail level.

  5. How is the beer tax paid?

    The beer tax is paid with a monthly return [secs. 139.05(2) and 139.11(2), Wis. Stats.]. The four different beer tax returns are as follows:

    • Wisconsin Brewery/Brewpub Fermented Malt Beverage Tax Return, Form BT-100.

    • Wisconsin Wholesaler's Report of Tax-Paid Beer, Form BT-104 (a zero tax informational report).

    • Fermented Malt Beverage Return, Form BT-106 (filed by out-of-state shippers).

    • Wisconsin Wholesalers' Return of Imported Beer, Form BT-108.

    EFT tax payments - Taxes can be paid to the Department by electronic funds transfer (EFT). Information about paying by EFT can be obtained from the Electronic Funds Transfer page or by calling (608) 264-9918.

  6. Where are the beer tax returns filed?

    Send all monthly returns and remittances to:

    Wisconsin Department of Revenue
    Excise Tax Section
    P.O. Box 8900
    Madison, WI 53708-8900

  7. When are the beer tax returns due?

    All beer tax returns are due by the 15th day of the month following the month covered by the return [sec. 139.05(1), Wis. Stats.]. For example, a return for October is due November 15.

    Late filed returns are subject to the following charges:

    • Late-filing fee - $10 [sec. 139.25(2), Wis. Stats.].

    • Delinquent interest - 1.5% per month [sec. 139.25(2), Wis. Stats.].

    • Late-filing penalty - 5% per month, maximum of 25% [sec. 139.25(4), Wis. Stats.].

    There are no extensions of time granted if you are unable to file a beer tax return and pay any beer tax owing by the due date.

  8. Is any beer exempt from the beer tax?

    No Wisconsin beer tax is due on the following [sec. 139.04, Wis. Stats.]:

    • Beer furnished by a brewer to employees without charge on brewery premises.

    • Beer which contains less than 0.5% alcohol by volume.

    • Beer shipped to other states or foreign countries.

    • Beer sold to industrial permittees for use in food items.

  9. Who may receive a refund of beer tax paid?

    Beer permittees can receive refunds from the Department of Revenue of the beer tax paid on the following:

    • Beer sold to the Armed Forces (e.g., Camp McCoy); file Form BT-612 [sec. 139.10(1), Wis. Stats.].

    • Beer which is spoiled or unfit for consumption; file Form AB-605 [sec. 139.10(1), Wis. Stats.].

    • Beer shipped to wholesalers outside Wisconsin; send a letter including invoices [sec. 139.04(5), Wis. Stats.].

  10. How do I correct a beer tax return that I previously filed?

    If you need to change a return previously filed, send the Department a letter detailing the changes. Calculate the additional tax you owe or refund you have coming.

    Send your letter and any remittance owing to:

    Wisconsin Department of Revenue
    Excise Tax Section
    P.O. Box 8900
    Madison, WI 53708-8900

  11. Am I subject to interest or penalties if I file an incorrect beer tax return?

    The following interest and discretionary penalties may be applied when you file incorrect beer tax returns:

    • Unpaid taxes bear interest at the rate of 12% per year [sec. 139.25(1), Wis. Stats.].

    • Refunded taxes bear interest at the rate of 9% per year [sec. 139.25(1), Wis. Stats.].

    • Negligence penalty of 25% of the tax is imposed if there is negligence in filing a return [sec. 139.25(3), Wis. Stats.].

    • Fraud penalty of 50% of the tax is imposed if there was intent to defeat or evade the beer tax [sec. 139.25(5), Wis. Stats.].

  12. Should I notify the Department of Revenue if the business has a change to its name, address, or ownership or if the business ceases operating in Wisconsin?

    You must notify the Department when your business has any change to its name, address, or ownership or when you cease operating in Wisconsin. You can notify the Department by letter or attach a note to your monthly return. If your name or ownership changes and you receive a different Federal Employer Identification Number (FEIN), you must file a new application with the Department and update your security. When you cease operations, you must be sure to file a return for the last month of operations even if you were in business only a few days during that month. Call (608) 261-6435 if you have any questions about your beer tax permit.

  13. How can I obtain additional information or forms relating to the beer tax?

    Contact the following Department offices to receive more information or forms regarding Wisconsin's beer tax:

    • Registration and Security

      Wisconsin Department of Revenue
      Excise Tax Section
      P.O. Box 8900
      Madison, WI 53708-8900
      (608) 261-6435
      FAX: (608) 261-7049
      E-Mail Additional Questions

    • Filing Returns, Paying Tax, and Forms

      Wisconsin Department of Revenue
      Excise Tax Section
      P.O. Box 8900
      Madison, WI 53708-8900
      (608) 266-6702
      FAX: (608) 261-7049
      E-Mail Additional Questions

  14. What records should I keep for Wisconsin tax purposes, and how long should I keep them?

    You must keep a complete copy of your beer tax returns and all records pertaining to your business for at least 4 years so the Department can determine how you computed your tax liabilities [secs. 139.092 and 139.11(1), Wis. Stats.]. The required records include, but are not limited to, your purchases, receipts, inventories, sales (whether taxable or exempt), distribution, and consumption of products. Your records must be kept in a place and manner easily accessible for review by Department representatives. When records are not maintained, the Department presumes that all products you purchase or receive are subject to tax without benefit of any deductions.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Excise Tax Section
Mail Stop 5-107
P.O. Box 8900
Madison, WI 53708
Phone: (608) 266-6702
Fax: (608) 261-7049
E-Mail Additional Questions

Last updated January 8, 2008