1. (1) This section applies to contract production agreements entered between a producer and an out-of-state recipe supplier under s. 125.21 (3) (b) 3., Stats. All other contract production agreements are governed by s. 125.21 (3), Stats.

2. (2) If the alcohol beverages created under a contract production agreement between parties outlined in s. 125.21 (3) (b) 3., Stats. is sold into interstate commerce, then s. Tax 8.07 shall apply, and the contract producer shall report the production in the report filed under s. 139.11 (2), Stats.

   Example: Oregon Distillery, an out-of-state recipe supplier, contracts with Wisconsin Distillery to bottle intoxicating liquor for Oregon Distillery. All finished intoxicating liquor is shipped directly from Wisconsin Distillery to Oregon Distillery’s out-of-state location, with no product remaining in Wisconsin. In this case, Wisconsin Distillery shall file the tax return for the bottled intoxicating liquor to show production, but no excise tax is due since all product is shipped into interstate commerce. Oregon Distillery is not required to hold any Wisconsin production permit.

History

History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.