Beer, Wine and Mixed Spirit Drink Taxes FAQs

Who pays the Beer/Wine/Mixed Spirit Drink taxes to the Liquor Control Commission (LCC)?

            Wholesale Licensees

            Direct Shipper Licensees

            Brewer, Micro Brewer, Brewpub Licensees

            Wine Maker, Small Wine Maker Licensees

            Mixed Spirit Drink Manufacturer Licensees

 

The tax reporting and payment system for Brewpub Licensees is not being changed.

 

The tax reporting and payment system for Direct Shipper Licensees is not being changed.

 

What event creates the need to pay Beer/Wine/Mixed Spirit Drink taxes to the LCC?

The taxpaying licensees must pay taxes based on their sales of Beer/Wine/Mixed Spirit Drink products.

 

When do the taxpaying licensees have to pay their Beer/Wine/Mixed Spirit Drink taxes?

The monthly tax reports and tax payments must be postmarked by the 15th of the following month. For example, the February 2015 monthly tax reports and payments must be postmarked by March 15, 2015.

 

Can the taxpaying licensee submit tax reports and payments electronically?

No. The tax reports and payments must be sent by U.S. Mail.

 

What if a Wholesale Licensee distributes Beer, Wine, and Mixed Spirit Drink products?

The Wholesale Licensee must submit separate tax reports and separate payments for Beer, Wine, and Mixed Spirit Drink products sold each month.

What if a Wholesale Licensee doesn’t distribute all three products (Beer, Wine, and Mixed Spirit Drinks)?

The Wholesale Licensee must submit one tax report for each of the three types of products at the beginning of each calendar year. The Wholesale Licensee should report either the months sales (if any) for each type of product or include a statement that says the Wholesale Licensee does not distribute that type of product. Then for the remainder of the calendar year the Wholesale Licensee only needs to submit tax reports and tax payments for those types of products that they distribute. It will be the responsibility of the Wholesale Licensee to notify the LCC of any changes in the types of products that they distribute. For example, a Wholesale Licensee who only distributes Beer and Wine will submit all three tax reports for January and then just submit Beer and Wine reports for the other eleven months of the year.

 

What are the Wholesale Licensee reporting requirements?

The Wholesale Licensee must submit monthly tax reports, tax payments, and sales invoices (or computer reports that contain all of the same information as the sales invoices) to support the tax reports. Also, the Wholesale Licensee must submit their Beer, Wine, and Mixed Spirit Drink purchase invoices each month (or a computer report that contains all of the same information as the purchase invoices). All reports, tax payments and invoices should be postmarked by the 15th of the following month.

 

What are the Outstate Seller Licensee reporting requirements?

The Outstate Seller Licensees must submit their sales invoices (or a computer report that contains all of the same information as their sales invoices) for all sales to Michigan Wholesale Licensees. The sales invoices must be submitted to the LCC each month and should be postmarked by the 15th of the following month.

 

Will the LCC accept any reports, documents or invoices that are submitted electronically?

Yes. The LCC will consider accepting electronically filed computer reports that include all of the detailed information that is contained in the Wholesale Licensee purchase and sales invoices.  Also, the supporting documentation for the tax reports could be sent to the LCC using this method.  All electronically submitted reports must be in an Excel spread sheet format and must be able to be sorted.  The electronic files must be approved by the LCC.  The Licensee will need to submit separate electronic files for Beer, Wine and Mixed Spirit Drink products.  The electronic files should be sent to the LCC as attachment to an e-mail. E-mail boxes with the following names are being created for your use in submitting reports and records to the LCC; MLCC Finance Beer Taxes, MLCC Finance Wine Taxes, and MLCC Finance Mixed Spirit Taxes.

 

Does an Outstate Seller Licensee need to change anything in the invoicing or pricing of their Beer, Wine, and Mixed Spirit Drink products sold to Michigan Wholesale Licensees?

Yes. The Outstate Seller Licensee should remove the Beer, Wine, and Mixed Spirit Drink taxes from its invoices for all sales to Michigan Wholesale Licensees. As of February 1, 2015 the Michigan Wholesale Licensees are responsible for paying the Beer, Wine, and Mixed Spirit Drink taxes to the State of Michigan.

 

How should a Wholesale Licensee report the results of their January 31, 2015 Beer, Wine, and Mixed Spirit Drink inventory?

The Wholesale Licensee only needs to report the Beer, Wine, and Mixed Spirit Drink tax paid amounts that were calculated based on their inventory quantities. The tax paid amounts must be reported separately for each type of tax and must be submitted to the LCC by February 28, 2015. The Wholesale Licensee must submit a document using their letterhead; with their name, address, license number, signature and the tax paid amounts.

 

Will the LCC be providing a form for the Wholesale Licensee to report their Beer, Wine, and Mixed Spirit Drink tax paid inventory amounts?

The LCC will not be providing a form. The Wholesale Licensee should submit a document on their letterhead; with their name, address, license number, signature and the tax paid amounts.

 

Why should a Wholesale Licensee report the tax amounts that they have paid on their inventory to the LCC?

This reporting is required in order for the Wholesale Licensee to receive a tax credit on their tax reports for taxes that they have already paid. If the Beer, Wine, and Mixed Spirit Drink tax paid amounts are not reported the LCC, the LCC will not give any tax credits to the Wholesale Licensee.

 

After February 1, 2015, will the Michigan Brewer, Micro Brewer, Wine Maker, Small Wine Maker, and Mixed Spirit Drink Manufacturer Licensees have the option of either paying the Beer, Wine, and Mixed Spirit Drink taxes themselves or designating a Wholesale Licensee to pay the tax on their behalf?

Yes. The law establishes this practice.  However, this part of the new tax collection and reporting system will not be ready on February 1, 2015.  The LCC will notify the Michigan Wine Makers, Brewers, and Manufacturers of Mixed Spirit Drink when the system is ready.

 

If a Michigan Brewer, Micro Brewer, Wine Maker, Small Wine Maker, and Mixed Spirit Drink Manufacturer Licensee designates a wholesaler to pay their Beer, Wine, and Mixed Spirit Drink taxes; will they still have to file a monthly tax report for their on-site sales, and they will have to file that monthly tax report regardless of whether they had any on-site sales during a month?

Yes. The Michigan Wine Makers, Brewers, and Manufacturers of Mixed Spirit Drink will still have to submit tax reports and tax payments every month.  The designation of a Wholesale Licensee does not relieve the Michigan Wine Maker, Brewer, or Manufacturer of Mixed Spirit Drink of their obligation to report on and pay the taxes for their on-site sales.

 

If a Michigan Brewer, Micro Brewer, Wine Maker, Small Wine Maker, and Mixed Spirit Drink Manufacturer Licensee designates a wholesaler to pay their Beer, Wine, and Mixed Spirit Drink taxes can they self-distribute their products to retail licensees?

No. The designation of a Wholesale Licensee to pay the Michigan Wine Maker, Brewer, or Manufacturer of Mixed Spirit Drinks taxes will actually prevent the Michigan Wine Maker, Brewer, or Manufacturer of Mixed Spirit Drink from self-distributing their products.

 

How should sales/transfers of product between Wholesale Licensees be reported to the LCC?

The purchasing/receiving Wholesale Licensee must submit a copy of the invoice (or transfer document) received from the selling/transferring Wholesale Licensee. These documents should be submitted each month.

 

Are there any Beer, Wine, Mixed Spirit Drink taxes due to the State of Michigan on sale/transfer transactions between Wholesale Licensees?

            No.

 

Should the selling/transferring Wholesale Licensee charge the purchasing/receiving Wholesale Licensee any Beer, Wine, Mixed Spirit Drink taxes on the sale/transfer?

            No.

 

Are the new Beer, Wine, and Mixed Spirit Drink tax reports and forms ready for use and/or review? If they are not ready, when will they be?

The tax forms and reports are currently being completed. They will be ready for the first reporting deadline, which occurs on March 15, 2015.

 

Where will the licensees be able to locate the Beer, Wine, and Mixed Spirit Drink tax reports and forms?

The new tax forms and reports will be available on our website at the following address:

http://www.michigan.gov/lara/0,4601,7-154-35299_10570_14177---,00.html