Liquor stores are not allowed to sell alcohol for resale by another business. Also, nonprofit organizations are not allowed to purchase liquor exempt from tax from a liquor store.

Some liquor stores also sell other taxable and nontaxable products. While liquor tax does not apply to these products, they may be subject to sales and use tax or other taxes. See the chart below for examples.

For more information about soft drinks, candy, food and food ingredients, see the following fact sheets:

• Candy
• Food and Food Ingredients
• Soft Drinks and Other Beverages
   

Liquor sales to a business that provides a completed Form ST3, Certificate of Exemption, are not taxable.

Liquor Posting List

Liquor distributors cannot sell liquor to a business listed on the Posting of Tax Delinquencies Liquor, Wine and Beer Sales.

Liquor Distributor Annual Sales Report

Liquor distributors must file an annual informational report indicating the name, address, Minnesota Tax ID Number, and total dollar amount of liquor sold to each retailer in the previous calendar year.

Report Due Date

The annual report is due March 31 and must include all liquor sales you made to retailers during the prior calendar year. You submit the report through our Virtual Room.

If you have questions about your reporting requirements or need assistance call 651-296-6181 or 1-800-657-3777 (toll-free).

Sales of liquor and other taxable items to employees are taxable. Charge tax on the price the employee pays. If you give taxable items to an employee, you owe use tax on your cost for that item. For more information, see Use Tax.

If a seller charges to deliver a taxable item to a customer, the delivery charges are also taxable, even if separately stated on the receipt. If you deliver a taxable liquor product, the 2.5 percent Liquor Gross Receipts tax also applies to the delivery charge.

For more information, see Delivery Charges.

Quantity Discounts

If you offer a discount to a customer who buys a large quantity, charge tax on the discounted price.

Rebates

A rebate either reduces the purchase price or is sent to a customer as cash or credit after the sale.

If a rebate voucher is issued to use on a future purchase with the same retailer or store who provided the rebate, it reduces the sales price. Do not treat the rebate like cash.

If a rebate check is issued, it is treated like cash.

For more information, see Coupons and Other Forms of Payment.

Gift certificates and gift cards are not taxable when sold. When a gift certificate or gift card is redeemed, charge sales tax on any taxable portion of the purchase. The gift certificate or gift card is processed as a cash payment.

The Alcohol and Gambling Enforcement Division of the Department of Public Safety licenses and regulates liquor sales made by distributors. For more information, visit the Alcohol and Gambling Enforcement website.

Local authorities license and regulate liquor sales made by liquor stores. For more information about liquor licensing, contact your city office.

If you make retail sales of cigarettes and tobacco products in Minnesota, you must have a special retailer’s license. For more information, see Cigarette and Tobacco Product Taxes License Requirement for Retailers.