Wis. Admin. Code § Tax 7.17 — Full-service retail sales by producers

Tax 7.17(1) (1) Definitions. In this section, “special outlet” means the one full-service retail outlet that a producer may relocate to a new location within this state without limitation on frequency in each calendar year as provided under ss. 125.29 (7) (g) 5. , 125.52 (4) (g) 5. , and 125.53 (3) (g) 5. , Stats.

Tax 7.17(2) (2) Application.

Tax 7.17(2)(a) (a) An application to make full-service retail sales by a producer, including sales made on the production premises or an off-site retail outlet, shall be submitted to the division on the application form created by the division.

Tax 7.17(2)(b) (b) An application for full-service retail sales by a producer shall be submitted to the division at least 15 business days prior to the commencement of full-service retail sales. An application submitted to the division less than 15 business days prior to the commencement of full-service retail sales may not receive approval by the division prior to the date of commencement.

Tax 7.17(2)(c) (c) The provisions under s. Tax 7.04 (3) (a) to (c) applying to permits apply to applications for and approvals of full-service retail sales.

Tax 7.17(3) (3) Production volume and eligibility.

Tax 7.17(3)(a) (a) Cumulative production volumes shall be verified by the producer’s Wisconsin excise tax returns filed with the department of revenue. Qualified cumulative production volumes are determined only by finished product in the month reported on excise tax returns.

Tax 7.17(3)(b) (b) Cumulative production volume requirements shall be based on a calendar year. However, a producer shall be eligible to apply for full-service retail sales at any point within a calendar year when their filed Wisconsin excise tax returns report qualifying cumulative production volume.

Tax 7.17(3)(c) (c) Historical cumulative production volumes for a producer shall only be considered for the person that is applying to make full-service retail sales and that currently holds the respective producer permit. In the case of mergers, acquisitions, reorganizations, and similar business restructures, the cumulative production volume of a previously permitted person is not considered when evaluating the applicant’s production volume eligibility.

Tax 7.17(3)(d) (d) Provided that the person issued the permit remains the same, historical cumulative production volumes shall be considered when evaluating an applicant’s cumulative production volume eligibility for any of the following:

Tax 7.17(3)(d)1. 1. A person previously issued a brewpub permit that is subsequently issued a brewer’s permit.

Tax 7.17(3)(d)2. 2. A person previously issued a winery permit that is subsequently issued a rectifier’s or manufacturer’s permit.

Tax 7.17(3)(d)3. 3. A person previously issued a manufacturer’s or rectifier’s permit that is subsequently issued a winery permit.

Tax 7.17(3)(e) (e) Upon a producer submitting and the division receiving a written request for a waiver, the division administrator may waive the determinations on eligibility of historical production volumes provided under pars. (c) and (d) if the division administrator determines the waiver is fair and equitable. A producer submitting a written request for a waiver shall explain the reasons why such waiver is fair and equitable, the effects of granting or denying the waiver request, and the individual circumstances surrounding the business entity change.

Tax 7.17(4) (4) Municipal approval of full-service retail outlets.

Tax 7.17(4)(a) (a) An application for a full-service retail outlet by a producer shall be approved by the municipality where the prospective outlet will be located prior to applying to the division.

Tax 7.17(4)(b) (b) Except as described in par. (c) , a full-service retail outlet by a producer shall be granted or denied by the governing body of the municipality or a duly authorized committee of a city council.

Tax 7.17(4)(c) (c) Pursuant to ss. 125.29 (7) (d) 3. , 125.52 (4) (d) 3. , and 125.53 (3) (d) 3. , Stats., a municipality may, by ordinance, designate a municipal official to grant or deny a producer’s special outlet that will be in existence for less than 4 consecutive calendar days.

Tax 7.17(5) (5) Division approval of full-service retail sales.

Tax 7.17(5)(a) (a) No producer shall make full-service retail sales without first receiving approval by the division.

Tax 7.17(5)(b) (b) Approval by the division for full-service retail sales by a producer shall be in the form of a permit certificate issued to the producer which indicates the person authorized to make full-service retail sales, the premises description, the municipality, the type of alcohol beverages authorized for sale, and the dates and times when sales are authorized. The certificate described in this paragraph is a separate certificate than the production permit certificate authorizing a person to be a producer.

Tax 7.17(5)(c) (c) Permit certificates issued under par. (b) shall be displayed in accordance with s. 125.04 (10) , Stats.

Tax 7.17(6) (6) Renewals.

Tax 7.17(6)(a) (a) Unless otherwise noted in the permit certificate described in sub. (5) (b) , an approval for full-service retail sales, including an approval for sales made on the production premises or an off-site retail outlet, shall expire on the same date as the producer’s production permit and the business tax registration certificate issued under s. 73.03 (50) , Stats.

Tax 7.17(6)(b) (b) A renewal of a full-service retail sales approval shall be reviewed by the division at the same time as the renewal for the underlying production permit.

Tax 7.17(6)(c) (c) A producer does not need the approval described in sub. (4) for renewal.

Tax 7.17(7) (7) Revocations, suspensions, and refusals to renew.

Tax 7.17(7)(a) (a) The division shall have the sole authority to revoke a producer’s approval for full-service retail sales.

Tax 7.17(7)(b) (b) A revocation of a producer’s approval for full-service retail sales by the division shall follow the procedures in s. 125.12 (5) , Stats.

Tax 7.17(7)(c) (c) A municipality or person may make a complaint to the division alleging that a producer has violated the law or that the producer does not hold the proper qualifications for full-service retail sales. The division shall review such complaints and determine whether the allegations are sufficient to revoke, suspend, or refuse to renew the authorization.

Tax 7.17(8) (8) Alcohol beverage purchases, deliveries, and invoices.

Tax 7.17(8)(a) (a) Except as provided in par. (b) , the provisions of s. Tax 7.08 (6) and (10) , as they relate to the purchase source of alcohol beverages and the delivery and transfer of alcohol beverages, apply individually to each of a producer’s full-service retail sales premises, including the production premises and an off-site retail outlet.

Tax 7.17(8)(b) (b) With respect to a special outlet that will be in existence for less than 4 consecutive calendar days, a producer may do all of the following:

Tax 7.17(8)(b)1. 1. Accept delivery of alcohol beverages at their production premises and subsequently transport those alcohol beverages to the special outlet.

Tax 7.17(8)(b)2. 2. Transport alcohol beverages not sold or consumed at the expiration of the outlet back to their production premises to be sold at the full-service retail location at the production premises or at a subsequent special outlet in existence for less than 4 consecutive days.

Tax 7.17(8)(c) (c) Nothing in par. (b) relieves a producer from the requirements under s. Tax 7.08 (7) and (8) to have alcohol beverage purchase invoices available for inspection at a full-service retail outlet, including a special outlet in existence for less than 4 consecutive days.

Tax 7.17(9) (9) Alcohol beverage sales.

Tax 7.17(9)(a) (a) No producer may make full-service retail sales of alcohol beverages for consumption off the premises unless the sale is made in the original unopened package or container.

Tax 7.17(9)(b) (b) Nothing in this subsection alters a municipality’s ability to limit the scope of alcohol beverages offered for sale at a producer’s full-service retail sales outlet.

Tax 7.17(10) (10) Possession with intent to sell. The provisions under s. Tax 7.21 as they apply to retail licenses and permits apply to full-service retail sales by producers at their production premises and any off-site retail outlet.