Resale Certificate for Liquor Stores: Buy Beer, Wine, and Spirits Wholesale Tax-Free
Liquor stores move high-dollar inventory constantly. A typical store restocks $20,000 to $50,000 in product each month. Premium spirits, craft beer, wine, and the mixers, glassware, and accessories that round out your shelves add up fast. Without a resale certificate, you are paying sales tax on every case that comes through your door.
A resale certificate eliminates that cost. At a 7% average rate, a store spending $30,000/month on inventory saves $25,200 per year.
Excise Tax vs. Sales Tax: Two Separate Systems
This is the most important distinction for liquor store owners to understand.
Federal excise tax is levied on the manufacturer or importer. It is built into the wholesale price your distributor charges you. You never see it as a separate line item. Your resale certificate has zero effect on excise taxes.
State excise tax varies by state. Some states add a per-gallon excise tax, others use an ad valorem (percentage-based) tax, and some use both. Again, these are typically built into the price you pay your distributor.
State and local sales tax is what your resale certificate addresses. This is the standard percentage-based tax that applies to the retail transaction. Your certificate exempts the wholesale purchase; you collect it from customers at the register.
In practice, when you buy a case of bourbon from your distributor, the price already includes federal and state excise taxes. The resale certificate removes the sales tax that would otherwise be added on top.
Three-Tier System and the Certificate
Most states operate a three-tier distribution system: manufacturer/importer sells to distributor, distributor sells to retailer, retailer sells to consumer. Your resale certificate operates at the distributor-to-retailer tier.
Your distributors (Southern Glazer's, Republic National, Breakthru Beverage, RNDC, and your local/regional distributors) will require your resale certificate and liquor license on file before shipping orders.
You cannot buy directly from most manufacturers in states with enforced three-tier systems. You buy from licensed distributors, and the resale certificate applies to those purchases.
States with looser rules (like some that allow direct shipping of wine) may have different requirements. But for standard inventory purchasing through distributors, the resale certificate is universal.
What You Can Buy Tax-Free
- Spirits (bourbon, vodka, gin, rum, tequila, whiskey, brandy, liqueurs)
- Wine (still, sparkling, domestic, imported, natural, dessert wines)
- Beer (craft, domestic, imported, cider, hard seltzer, malt beverages)
- Mixers and non-alcoholic beverages sold at retail (tonic, club soda, bitters, juices)
- Glassware sold at retail (wine glasses, cocktail sets, decanters)
- Bar accessories sold at retail (corkscrews, shakers, jiggers, ice molds)
- Gift sets and holiday packages (baskets, gift boxes with bottles)
- Tobacco products (if licensed to sell, subject to separate tobacco excise tax)
- Snacks and food (cheese, crackers, charcuterie items, nuts sold retail)
- Ice
- Shopping bags given to customers (many states consider these part of the sale)
What You CANNOT Buy Tax-Free
| Item | Why It Is Taxable |
|---|---|
| Store shelving and display racks | Business equipment |
| Refrigeration units and wine coolers | Business equipment |
| Security system and cameras | Business equipment |
| POS system | Business equipment |
| Tasting supplies (cups, dump buckets) | Business use |
| Tasting inventory you do not sell | Business marketing (consumed, not resold) |
| Cleaning supplies | Business use |
| Delivery vehicle | Business asset |
Tasting inventory. When you open a bottle for in-store tastings, that bottle is no longer inventory for resale. It is a marketing expense. You owe use tax on it (or should have paid sales tax when you purchased it, without using the resale certificate). If your state allows tastings, account for tasting inventory separately.
Dollar Savings
| Store Type | Monthly Inventory Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Small neighborhood store | $15,000 | $12,600 |
| Mid-size liquor store | $30,000 | $25,200 |
| High-volume superstore | $75,000 | $63,000 |
| Multi-location chain | $200,000+ | $168,000+ |
State-Specific Notes
California
California liquor stores are among the highest-volume in the country. Standard CDTFA seller's permit required. California's complex local tax rates mean you may collect 8% to 10.25% from customers depending on location.
Texas
Texas requires a separate alcohol retailer's permit from TABC in addition to your sales tax permit. Beer and wine off-premises is a different permit class than liquor (distilled spirits). Form 01-339 for your resale certificate.
New York
New York does not allow grocery stores to sell wine (only licensed liquor stores can). This gives liquor stores a protected market for wine sales. Certificate of Authority required for sales tax.
Control States (PA, VA, NC, OH, etc.)
In control states, the state government operates as the wholesale distributor for some or all categories of alcohol. Pennsylvania's PLCB, Virginia ABC, and similar agencies control distribution. Your resale certificate still applies to your purchases from the state system, as you are a licensed retailer buying for resale.
Common Mistakes
Not tracking tasting inventory separately. Every bottle you open for tastings should be logged as a non-resale purchase. This is a common audit finding.
Mixing personal purchases with store inventory. That bottle of wine you took home? Use tax applies. Keep personal and business purchases separate.
Not collecting correct local tax rates. Alcohol may be subject to additional local or county taxes in some jurisdictions beyond the standard sales tax rate. Make sure your POS has the correct combined rate.
Forgetting about online sales. If you sell through Drizly, ReserveBar, or your own website and ship to other states, you may have nexus obligations. Alcohol shipping laws add another layer of complexity.
How to Get Started
- Get your liquor license first. This is the regulatory prerequisite. The process varies by state and can take weeks to months.
- Apply for your resale certificate through your state or our application service.
- Set up distributor accounts. Southern Glazer's, Republic National, and your local distributors need both your license and resale certificate on file.
- Configure your POS for correct tax collection. Alcohol rates, grocery rates, and general merchandise rates may differ.