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Last Updated: 3/22/2017

Sales – Liquor

Sales of liquor, wine, and beer are taxable. You must have a liquor license to sell these drinks. The type of license and your location determine the tax rate you must charge on your liquor sales.

If you have this type of license

You must charge all of the following

Intoxicating Liquor, Club, or
Wine
  • 6.875% state general rate sales tax
  • 2.5% liquor gross  receipts tax
  • Any applicable local or special local taxes on all sales of alcoholic beverages including wine coolers and 3.2 beer
3.2 percent malt liquor
  • 6.875% state general rate sales tax
  • Any applicable local or special local taxes on all taxable sales including 3.2 beer
Set-up
  • 6.875% state general rate sales tax
  • Any applicable local or special local taxes on all taxable sales
Note: No matter what type of liquor license you have, nonalcoholic beer and wine is only subject to the state general sales tax rate and any applicable local taxes.
 

Liquor for resale

Food and bar establishments are retailers. As such, you cannot sell liquor to any person or business for resale. Only liquor distributors can legally sell for resale.
 

Liquor Tax Responsibilities

Liquor Posting

If you sell liquor, beer, or wine and are 10 or more days late in filing or paying your taxes, we will place you on the public Tax Delinquency (Liquor Posting) list. Tax types included are: sales, withholding, S corporation, corporate income, and certain partnership. (See Minnesota Statutes, Section 270C.725.)

We notify you at least 10 days before you are posted.

Once you are on the list, no wholesaler, manufacturer, or brewer can sell or deliver any product to you. You cannot purchase retail liquor, beer, or wine for resale. We may revoke your license or prevent you from transferring, renewing, or obtaining a license.

To avoid being posted to, or to be removed from, the list, you must pay your tax liability in full with secured funds. Secured funds are guaranteed by the financial institution who issued them. Examples include cash, cashier’s check, money order, bank wire transfer, or a credit card payment we enter.

Payment agreements

You cannot have a payment agreement unless you surrender your liquor license. For more information, call us at 651-556-3003 or 1-800-657-3909 (toll-free).

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