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Self-Distribution Information

Spirits Self-Distribution

Self-Distribution of Spirits Products by Small Distiller Licensees

  •  A Small Distiller licensee may self-distribute spirits products that it manufacturers to retailer licensees in Michigan if it does not sell more than 3,000 gallons of spirits to retailers, whether in Michigan or another state, in a calendar year.
  • The licensee cannot self-distribute spirits products that are listed in the Commission’s price book.
  • The licensee must register the spirit products in EQuote the same way that it registers products it sells exclusively in its tasting room. The licensee will choose “MI. SMALL DISTILLERS” from the ADA drop-down box in EQuote to register products for self-distribution. Any products that are already registered under “MI. SMALL DISTILLERS” for tasting room only sales, may also be self-distributed without registering them again.
  • The licensee must comply with the uniform pricing set by the Commission for spirits products. The Commission will send the licensee the minimum shelf price after the products are registered through EQuote.
  • Once the minimum shelf price has been determined, the self-distributed spirits products must be sold to a retailer with the required 17% discount off the minimum shelf price, pursuant to MCL 436.1233. For example, if a Small Distiller submits a price for a bottle of spirits at $10.00, the Commission marks it up to $16.50 (65%).  The three 4% taxes on $16.50 are $1.98 total.  The minimum shelf price is $18.48 ($16.50 + $1.98).  The price to the retailer is based on the marked-up price ($16.50) minus the 17% discount ($2.81) plus the three 4% taxes on the base price ($1.98), which totals $15.68.  The downloadable self-distribution price calculator will assist in accurately calculating your quotation price, minimum shelf price, and the price to the retailer with the 17% discount for spirits products that do not qualify for a reduced markup.  For self-distribution of qualified spirits products by qualified Small Distiller licensees at the reduced 32.5% markup use the self-distribution price calculator for qualified spirits products to calculate the quotation price, minimum shelf price, and the price to the retailer.  Adobe Acrobat or Acrobat Reader is required to use the self-distribution price calculator.
  • The licensee must must report and pay the applicable taxes on the products sold. After products are registered through EQuote, the Commission will send the licensee the tax rate schedules to use for calculating the taxes. The licensee must file, on a monthly basis, the Michigan Small Distiller Monthly Self-Distribution Monthly Report of Sales (LCC-820) for all self-distributed sales. If the licensee has no self-distributed sales, it must check the box listed on the Michigan Small Distiller Monthly Tax Report (LC-804) that says the licensee had no self-distributed sales for that month. If the box for no-self-distributed sales is checked, form LCC-820 does not need to be submitted with the tax form, LC-804.
  • The deliveries must be made by the licensee’s own employees. The employees must be individually licensed with a Salesperson license, unless otherwise exempt under the law. Please visit the Salesperson License Information webpage for more details on Salesperson license requirements.
  • The deliveries must be made in vehicles owned by the licensee. These vehicles must have been issued a delivery vehicle decal by the MLCC. The licensee may apply for vehicle decals using the Delivery Vehicle Decal Application (LCC-351).

 

Self-Distribution of Spirits Products by Outstate Self-Distributor Licensees

  • An entity that is the out-of-state equivalent of a Small Distiller licensee that has been issued an Outstate Self-Distributor license may self-distribute spirits products that it manufacturers to retailer licensees in Michigan if it does not sell more than 3,000 gallons of spirits to retailers, both in Michigan and in other states, in a calendar year. An applicant for this license should complete and submit the Outstate Self-Distributor License Application (LCC-159).
  • The licensee cannot self-distribute spirits products that are listed in the Commission’s price book. If the licensee is registered as a Vendor of Spirits with the Commission it cannot self-distribute any of the products that may already be listed in the price book.
  • Once the licensee has been issued the Outstate Self-Distributor license, the MLCC will provide the licensee with credentials to access EQuote, Michigan’s system for registering spirits products.
  • When registering products, the licensee will choose “Outstate Self Distributor” from the ADA drop-down box in EQuote to register products for self-distribution.
  • The licensee must comply with the uniform pricing set by the Commission for spirits products. The Commission will send the licensee the minimum shelf price after the products are registered through EQuote.
  • Once the minimum shelf price has been determined, the self-distributed spirits products must be sold to a retailer with the required 17% discount off the minimum shelf price, pursuant to MCL 436.1233. For example, if an Outstate Self-Distributor licensee submits a price for a bottle of spirits at $10.00, the Commission marks it up to $16.50 (65%).  The three 4% taxes on $16.50 are $1.98 total.  The minimum shelf price is $18.48 ($16.50 + $1.98).  The price to the retailer is based on the marked-up price ($16.50) minus the 17% discount ($2.81) plus the three 4% taxes on the base price ($1.98), which totals $15.68.  The downloadable self-distribution price calculator will assist in accurately calculating your quotation price, minimum shelf price, and the price to the retailer with the 17% discount. Adobe Acrobat or Acrobat Reader is required to use the self-distribution price calculator.
  • The licensee must report and pay the applicable taxes on the products sold. After products are registered through EQuote, the Commission will send the licensee the tax rate schedules to use for calculating the taxes. The licensee must file, on a monthly basis, the Outstate Self-Distributor Monthly Spirits Tax Report (LCC-821) for all self-distributed sales. If the licensee has no self-distributed sales, it must check the box listed on the form that says the licensee had no self-distributed sales for that month. If there were self-distributed sales, the licensees must also submit the Outstate Self-Distributor Monthly Report of Spirits Sales (LCC-822).The retailer licensee’s name and MLCC license number, invoice number and date, MLCC code number, and description and size and the number of bottles sold must be provided on this form.
  • The deliveries must be made by the licensee’s own employees. The employees must be individually licensed with a Salesperson license, unless otherwise exempt under the law. Please visit the Salesperson License Information webpage for more details on Salesperson license requirements.
  • The deliveries must be made in vehicles owned by the licensee. These vehicles must have been issued a delivery vehicle decal by the MLCC. The licensee may apply for vehicle decals using the Delivery Vehicle Decal Application (LCC-351).

 

Beer Self-Distribution

Self-Distribution of Beer by Micro Brewer Licensees

 

Self-Distribution of Beer by Outstate Self-Distributor Licensees

Mixed Spirit Drink Self-Distribution

Mixed spirit drink products are spirit-based drinks with lower alcohol content (less than 10% for most products or less than 13.5% for canned cocktails) that are produced and packaged by the original manufacturer. These are commonly called "ready-to-drink" (RTD) cocktails or "canned cocktails".  These are not mixed drinks or cocktails mixed by a bartender on the premises.

Self-Distribution of Mixed Spirit Drink Products by Mixed Spirit Drink Manufacturer Licensees

  • A Mixed Spirit Drink Manufacturer licensee may self-distribute mixed spirit drink products that it manufacturers to retailer licensees in Michigan if it does not sell more than 31,000 gallons of mixed spirit drink in a calendar year.
  • The mixed spirit drink products must conform to the bottle deposit requirements of 1976 IL 1, MCL 445.571 to 445.576, commonly referred to as the “Bottle Bill”, as applicable.
  • The licensee must register the mixed spirit drink products on the Michigan Wholesale Product Registry (MWPR) and must report and pay the applicable taxes on the products sold.
  • The licensee cannot self-distribute to retailer licensees in a sales territory where it has granted exclusive rights to a Wholesaler licensee for the sale of any brand or brands of mixed spirit drink.
  • The deliveries must be made by the licensee’s own employees.  The employees must be individually licensed with a Salesperson license, unless otherwise exempt under the law.  Please visit the Salesperson License Information webpage on the MLCC website for more details on Salesperson license requirements.
  • The deliveries must be made in vehicles owned by the licensee.  These vehicles must have been issued a delivery vehicle decal by the MLCC.  The licensee may apply for vehicle decals using the Delivery Vehicle Decal Application (LCC-351).

 

Self-Distribution of Mixed Spirit Drink Products by Outstate Self-Distributor Licensees

Wine Self-Distribution

Self-Distribution of Wine By Michigan Wine Maker or Small Wine Maker Licensees

 

Self-Distribution of Wine by Outstate Self-Distributor Licensees

  • An entity that is the out-of-state equivalent of a Small Wine Maker licensee that has been issued an Outstate Self-Distributor license may self-distribute wine products that it manufacturers to retailer licensees in Michigan if it does not manufacture more than 50,000 gallons of wine a year. An applicant for this license should complete and submit the Outstate Self-Distributor License Application (LCC-159).
  • The licensee must register the wine products on the Michigan Wholesale Product Registry (MWPR) and must report and pay the applicable taxes on the products sold.
  • The licensee cannot self-distribute to retailer licensees in a sales territory where it has granted exclusive rights to a Wholesaler licensee for the sale of any brand or brands of wine.
  • The deliveries must be made by the licensee’s own employees. The employees must be individually licensed with a Salesperson license, unless otherwise exempt under the law. Please visit the Salesperson License Information webpage on the MLCC website for more details on Salesperson license requirements.
  • The deliveries must be made in vehicles owned by the licensee. These vehicles must have been issued a delivery vehicle decal by the MLCC. The licensee may apply for vehicle decals using the Delivery Vehicle Decal Application (LCC-351).