§ 5-01-19 — Domestic distillery

1. The tax commissioner may issue a domestic distillery license to the owner or operator
of a distillery that is located within this state. A domestic distillery license may be
issued and renewed for an annual fee of one hundred dollars. This fee is in lieu of all
other license fees required by this title. The tax commissioner may not issue the
domestic distillery license until the applicant has established that the applicant has
applied for and obtained the necessary federal registrations and permits, as required
under the Internal Revenue Code of 1986 [26 U.S.C. 5001 et seq.] and the federal
Alcohol Administration Act [27 U.S.C. 203], for the operation of a distilled spirits plant.
2. A domestic distillery may sell spirits produced by that distillery at on sale or off sale, in
retail lots, and not for resale, and may sell or direct ship its spirits to persons inside or
outside the state in a manner consistent with the laws of the place of the sale or
delivery in total quantities not in excess of twenty-five thousand gallons [94635 liters]
in a calendar year. Direct sales within this state are limited to two and thirty-eight
hundredths gallons [9 liters] or less per month per person for personal use and not for
resale. The packaging must conform with the labeling requirements in section 5-01-16.
A licensee may dispense free samples of the spirits offered for sale. Subject to local
ordinance, sales at on sale and off sale may be made on Sundays between eight a.m.
and twelve midnight. A domestic distillery may hold events inside and outside its
premises, but only on contiguous property under common ownership, allowing free
samples of its spirits and to sell its spirits by the glass or in closed containers. The tax

commissioner may issue special event permits for not more than forty events per
calendar year to a domestic distillery allowing the domestic distillery, subject to local
ordinance, to give free samples of its product and to sell its product by the glass or in
closed containers, at off-premises events. A domestic distillery may not engage in any
wholesaling activities. Except as provided by section 5-01-19.1, all sales and deliveries
of spirits to any other retail licensed premises in this state may be made only through a
licensed North Dakota liquor wholesaler. However, a domestic distillery may sell
distilled spirits to a domestic winery if the distilled spirits were produced from products
provided to the domestic distillery by the domestic winery. No later than the last
business day of a calendar month, a farm distillery that has made sales to a North
Dakota wholesaler during the preceding calendar month shall file a report with the tax
commissioner reporting those sales.
3. A domestic distillery may obtain a domestic distillery license and a retailer license
allowing the onpremises sale of alcoholic beverages at a restaurant owned by the
licensee and located on property contiguous to the domestic distillery. A domestic
distillery also may own or operate a winery.
4. A domestic distillery is subject to section 5-03-06 and shall report and pay annually to
the tax commissioner the wholesaler taxes due on all spirits sold by the licensee at
retail or to a retail licensee, including all spirits shipped directly to consumers as set
forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are due
January fifteenth of the year following the year sales were made. The report must
provide the detail and be in a format as prescribed by the tax commissioner. The tax
commissioner may require that the report be submitted in an electronic format
approved by the tax commissioner.