SD SB186

Distilleries located in or outside South Dakota may obtain a direct shipper license ($100 annual fee) to sell and ship distilled spirits directly to verified 21+ consumers, limited to 12 liters per individual and 60,000 liters total into the state per calendar year.

Only distilled spirits not already in distribution in South Dakota and produced by the licensed distillery may be shipped directly to consumers; recipients are prohibited from reselling purchased spirits.

Common carriers must obtain a distilled spirits carrier license ($100 annual fee) to deliver shipments, with packages requiring conspicuous alcohol labeling and adult signature verification upon delivery.

Direct shippers must file quarterly reports detailing shipments, recipients, and tracking information, and must remit applicable alcohol excise taxes and sales taxes electronically to the Department of Revenue.

Civil penalties range from $1,000-$2,000 for shipping/labeling violations and up to $5,000 for unlicensed shipping; reselling received spirits is a Class 1 misdemeanor, and shipping non-self-produced spirits is a Class 2 misdemeanor.