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Last Updated: 11/28/2017

Microdistillery Tax Return Instructions

You must first complete the Microdistillery Excise Tax Return template to calculate the tax and then enter this information into e-Services.

The Excel template is divided into nine worksheets.
 
  • ​Microdistillery Totals
  • ​Tax Exempt Sales
  • Bottling
  • ​Breakage
  • ​Tax Paid Returns
  • ​Other Reductions to Inventory
  • ​Untaxed Returns
  • ​Production Report
  • ​Other Additions to Inventory

Microdistillery totals

Enter the filing period, business name and related information. Also enter the:

Bottling

Enter the number of liters for each type of distilled spirits, the number of liters of low-alcohol dairy cocktails, and the total amount of bottles (exclude bottles containing less than 200ml), and the number of bottles of 50ml miniatures.

Tax paid returns

Enter returns on which liquor tax has been paid to the state, and for which a credit memo has been issued to the customer.

Untaxed returns

Enter customer returns on which liquor tax has not been paid to the state and any tax-exempt sales that have been returned to inventory during the period.

Other additions to inventory

Enter any miscellaneous adjustments/corrections that increased your inventory.

Tax exempt sales

Enter your tax-exempt sales. The following are considered tax-exempt:

  • sales to common carriers engaged in interstate transportation of passengers;
  • sales to qualified approved military clubs;
  • sales or transfers between Minnesota wholesalers;
  • sales to a federal agency that the state of Minnesota is prohibited from taxing; and
  • sales to the established governing body of an Indian tribe as set forth in M.S. 297G.08.

Breakage

Enter all authorized breakage and supervised destruction.

Other reductions to inventory

Enter any miscellaneous adjustments, corrections or transactions that decreased your inventory. Provide a description of the subtraction listed.

Production report

Microdistilleries are required to report the number of proof gallons they produce each calendar year. This information is due January 18. For more information, see Microdistillery Credit and Annual Production Report.