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2025 Kentucky Revised Statutes
Chapter 243 - Alcoholic beverages -- licenses and taxes
243.884 Wholesale sales tax imposed -- Rates -- Report and payment -- Exemptions.

Universal Citation:
KY Rev Stat § 243.884 (2025)
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243.884 Wholesale sales tax imposed -- Rates -- Report and payment -Exemptions. (1) (2) (a) For the privilege of making "wholesale sales" or "sales at wholesale" of malt beverages, wine, distilled spirits, or cannabis-infused beverages, a tax is hereby imposed upon all wholesalers of wine and distilled spirits, all distributors of malt beverages or cannabis-infused beverages, all direct shipper licensees shipping alcoholic beverages or cannabis-infused beverages to a consumer at a Kentucky address, all distillers making sales pursuant to KRS 243.0305(3), (4)(a)1. and 2. and (c), (7), (9), (10), (12), and (13), all microbreweries selling malt beverages under KRS 243.157, all small farm wineries selling wine under KRS 243.155, and all manufacturers of cannabisinfused beverages permitted by the Department for Public Health. (b) Prior to July 1, 2015, the tax shall be imposed at the rate of eleven percent (11%) of the gross receipts of any wholesaler or distributor derived from "sales at wholesale" or "wholesale sales" made within the Commonwealth, except as provided in subsection (3) of this section. For the purposes of this section, the gross receipts of a microbrewery making "wholesale sales" shall be calculated by determining the dollar value amount that the microbrewer would have collected had it conveyed to a distributor the same volume sold to a consumer as allowed under KRS 243.157(3)(b) and (c). (c) The following rates shall apply to wholesale sales or sales at wholesale: 1. For distilled spirits and cannabis-infused beverages, eleven percent (11%); and 2. For wine and malt beverages, ten percent (10%). (d) The following rates shall apply for direct shipper sales: 1. For distilled spirits and cannabis-infused beverages shipments, eleven percent (11%) for wholesale sales or sales at wholesale; and 2. For wine and malt beverage shipments, ten percent (10%) for wholesale sales or sales at wholesale. (e) For direct shipper sales or sales made pursuant to KRS 243.0305, if a wholesale price is not readily available, the direct shipper licensee or distillery shall calculate the wholesale price to be seventy percent (70%) of the retail price of the alcoholic beverages. Wholesalers of distilled spirits and wine, distributors of malt beverages or cannabisinfused beverages, microbreweries, distillers, manufacturers of cannabis-infused beverages permitted by the Department for Public Health, and direct shipper licensees shall pay and report the tax levied by this section on or before the twentieth day of the calendar month next succeeding the month in which possession or title of the distilled spirits, wine, malt beverages, or cannabis-infused beverages is transferred from the wholesaler or distributor to retailers, or by microbreweries, distillers, manufacturers of cannabis-infused beverages permitted by the Department for Public Health, or direct shipper licensees to consumers in this state, in accordance with administrative regulations promulgated under KRS Chapter 13A designed reasonably to protect the revenues of the Commonwealth. (3) Gross receipts from sales at wholesale or wholesale sales shall not include the following sales: (a) Sales made between wholesalers, between distributors, or between manufacturers of cannabis-infused beverages permitted by the Department for Public Health; (b) Sales from the first fifty thousand (50,000) gallons of wine produced by a small farm winery in a calendar year made by: 1. The small farm winery; or 2. A wholesaler of that wine produced by the small farm winery; and (c) Sales made between a direct shipper licensee and a consumer located outside of Kentucky. Effective: July 1, 2025 History: Amended 2025 Ky. Acts ch. 98, sec. 24, effective July 1, 2025. -- Amended 2024 Ky. Acts ch. 110, sec. 3, effective July 15, 2024. -- Amended 2023 Ky. Acts ch. 15, sec. 3, effective March 17, 2023. -- Amended 2022 Ky. Acts ch. 39, sec. 11, effective March 29, 2022. -- Amended 2021 Ky. Acts ch. 13, sec. 13, effective March 12, 2021. -- Amended 2019 Ky. Acts ch. 151, sec. 77, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 16, sec. 3, effective July 14, 2018. -- Amended 2016 Ky. Acts ch. 80, sec. 20, effective July 15, 2016. -- Amended 2014 Ky. Acts ch. 102, sec. 18, effective July 15, 2014. -- Amended 2006 Ky. Acts ch. 179, sec. 11, effective January 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 660, effective June 20, 2005; and ch. 168, sec. 74, effective June 1, 2005. -- Amended 2000 Ky. Acts ch. 167, sec. 3, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 451, sec. 4, effective July 15, 1994. -- Created 1982 Ky. Acts ch. 390, sec. 4, effective June 1, 1982.
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