LICENSING
Brewers must obtain both federal and state licenses to brew beer. The processes can be done simultaneously, but the federal process is likely to take longer. Once licensed in the state, many licensing decisions are left up to the city in which the establishment is located. Cities have broad discretion in licensing decisions and the Minnesota Supreme Court has concluded that there is no right to a liquor license. Liquor licenses and permits are specific to a certain person, place, type of beverage, and type of sale.
Federal Licensing
The Alcohol and Tobacco Tax and trade Bureau (TTB) is the federal administration that oversees licensing and regulations of alcohol, tobacco, firearms, and ammunition and to collect taxes on all of those products.
Alcohol and Tobacco Tax and Trade Bureau
Public Information Officer
1310 G Street, NW, Suite 300
Washington, D.C. 20220
Tel.: (202) 453-2000
ttbquestions@ttb.treas.gov
Federal ID Number
To fill out the necessary federal license applications, businesses will need a Federal ID number. You must then register your business.
Brewer’s Notice
Brewer’s must submit the Brewer’s Notice form and the Brewer’s Bond form. Brewers can visit TTB permits online to set up an account and submit the Brewer’s Notice or call 877-882-3277 to request the forms. Brewers will need to submit a Surety Brewer’s Bond and a Collateral Brewer’s Bond.
It is recommended that you file for a Brewer’s Notice online because it is less cumbersome. There are many paper forms that need to be filed, but the online filing is condensed into one application process.
After completing the required introductory steps you will begin the brewery application. A brewery application requires, among other things, a Federal ID number and information concerning how the business in financed. A tracking number is then issued to the applicant, which is used with the Brewer’s Bond form. Once the Brewer’s notice is completed, the Brewer’s Bond form should be completed. You may choose between either a Surety Brewer’s Bond or a Collateral Brewer’s Bond. This form must be mailed to the TTB. If you wish to submit both the Brewer’s Bond and the Brewer’s Notice by mail, rather than online, you may request a packed with the required forms and instructions. To do so, contact TTB National Revenue Center by mail or phone. The contact information is listed below:
TTB National Revenue Center
8002 Federal Office Building
550 Main Street
Cincinnati, OH 45202-3263
(513) 684-2238 or Toll Free: 800-398-2282
Brewers Bond
A Brewers surety bond is a license and permit surety bond that is required by federal and state laws governing the sale, manufacturing, and warehousing of beer. The bond guarantees that the principal will pay the necessary taxes from the sale, manufacturing, or warehousing of beer. TTB requires surety bonds. If the brewery fails to pay the necessary taxes, then the government may make a claim on the bond to recoup unpaid taxes.
State Licensing
Alcohol licensing differs state by state; no two states have the same requirements. There is a complete list of State and Minneapolis license forms and requirements online.
Businesses should register with the Secretary of State and obtain a State of Minnesota Tax Identification number. To get more information about a Tax ID number, call the State of Minnesota Business Records Department, 600 Robert Street North, Saint Paul, MN (651) 296-6181.
Wholesaler/Manufacturer Intoxicating Liquor License
In Minnesota, breweries must apply for a Wholesaler’s/Manufacturer’s Intoxicating Liquor License. Keep in mind that the application requires information regarding the businesses’ zoning permits, so the zoning permits should be obtained before brewers start the license application. A person may sell malt liquor with greater than 3.2 percent alcohol by volume without an additional license if the person has an intoxicating liquor license. For a license to be submitted, the applicant must first file a bond with a corporate surety, cash, or U.S. government bonds payable to the state. Bonds must be in the following amounts:
Manufacturers & wholesalers of intoxicating liquor
$10,000
Manufacturers & wholesalers of wine up to 25% ABW
$5,000
Manufacturers & wholesalers of beer of more than 3.2% ABW
$1,000
Manufacturers & wholesalers of less than 20,000 proof gallons
$2,000
Manufacturers & wholesalers of 20,000 to 40,000 proof gallons
$3,000
Annual License Fees
Annual license fees differ depending on the type of license. The annual fee amount for each license type is listed below.
Manufacturers (except of wine of less than 25% ABV, and brewers making more than 3,500 barrels of malt liquor a year)
$30,000
Manufacturers of wine equal to or less than 25% ABV
$500
Wholesalers (except those of wine of no more than 25% abv, of intoxicating malt liquor, of 3.2% malt liquor)
$15,000
Wholesalers of wines not more than 25% ABV
$3,750
Wholesaler of intoxicating malt liquor
$1,000
Wholesalers of 3.2% malt liquor
$10
Brewers (brewing over 3,500 barrels annually)
$4,000
Brewers (brewing between 2,000 – 3,500 barrels annually)
$500
Brewers manufacturing less than 2,000 barrels of malt liquor per year
$150
Brewpub
$500
In order to raise the amounts of some liquor license fees, the city must first hold a hearing. The city must give mailed notice of the hearing to all affected licensees at least 30 days before the hearing. This requirement applies to on-sale intoxicating liquor licenses; off-sale intoxicating liquor licenses; 3.2 percent malt liquor licenses.
On-Sale Licenses
Intoxicating Liquor License On-Sale
This license permits on-premise consumption of distilled spirits, wine, and strong beer. Fees will vary depending on the class of entertainment chosen. To obtain this type of license you must submit an application for Certification of an On Sale Liquor License, 3.2% Liquor license, or Sunday Liquor License.
Club On-Sale License
This license allows the sale of intoxicating liquor to members and of the club and bona-fide guests. However, the club needs to be in existence for at least three years before a club on-sale license will be issued.
Sunday On-Sale Intoxicating Liquor License
Sunday on-sale liquor license allows on-premise consumption of intoxicating liquor on Sundays. This license is issued to holders of intoxicating liquor on-sale licenses and is issued by the city.
2:00 a.m. Permit
This license allows the sale of intoxicating liquor between the hours of 1:00 to 2:00 a.m. This license is only issued to holders of on-sale intoxicating liquor licenses and is issued by the Department of Public Safety.
Combination On-Sale/Off-Sale Intoxicating Liquor Licenses
This license is issued to establishments for the sale of intoxicating liquor for on-premise and off-premise consumption.
Combination On-Sale/Off-Sale 3.2 Percent Malt Liquor License
This license allows the sale of 3.2 percent beer for both on-premise and off-premise consumption.
Brewpubs: On-Sale Intoxicating Liquor Licenses
Only licensed restaurants with brewing facilities may be issued a brewpub license. The license allows a restaurant to operate with on-sale of beer that is brewed on the premises. The brewery must possess a liquor manufacturer license issued by Minnesota, manufacture less than 3,500 barrels of malt liquor per year for consumption on the premises or for off-sale from the premises, and must not have an ownership interest in any other licensed intoxication liquor or malt liquor manufacturer.
Brewer Taproom License
Certain brewers may qualify for an on-sale malt liquor license, called a taproom license. This license authorizes on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. This license is limited to small brewers. Per the statute, municipalities are allowed to issue the holder of a brewer’s license a “brewer taproom license.” Brewers are limited to one taproom license, but may operate a restaurant at the brewery if they so choose. The law requires the municipality in which the taproom is located to inform the Commissioner of the Minnesota Department of Public Safety of the licensee’s name and information within ten (10) days of issuance of the license.
3.2 Percent Malt Liquor On-Sale Licenses (Beer Licenses)
This license is available to all types of establishments and allows the on-premise consumption of 3.2% beer. This license is issued by the city.
On-Sale Wine License
This license allows the on-premise consumption of wine, along with the sale of food. Some license holders may also be able to sell strong beer with this license, so long as at least 60% of the gross income is from the sale of food.
Temporary On-Sale Intoxicating Liquor Licenses
This license is issued to clubs and nonprofit organizations that have been in existence for at least six years. The license allows the sale of intoxicating liquor for on-premise consumption at events that are sponsored by the licensee. The license is valid up to four days.
Temporary On-Sale 3.2 Percent Malt Liquor Licenses
This license allows the temporary on sale of 3.2 % malt liquor. This license is regulated according to the city, but is available to the clubs, charitable organizations, religious organization, and nonprofit organizations.
Off-Sale Liquor Licenses
Off-Sale Intoxicating Liquor Licenses
This license is only issued to exclusive liquor stores, grocery stores, and drug stores. The license allows for the sale of intoxicating liquor for off-premise consumption. This license also allows exclusive liquor stores to sell tobacco, ice, soft drinks, and mixes. Brewers will need to apply for a Minnesota Brew Pub Off-Sale Intoxicating Liquor License and a Minneapolis Off-Sale Malt Liquor License.
Off-Sale 3.2 Percent Malt Liquor Licenses
This license allows the off-premise consumption of 3.2 percent beer.
Brewpubs: Off-Sale
Brewpubs are allowed to sell beer brewed on their premises in 64 ounce bottles (often called growlers) for off-premise consumption. Under this license, retail sales may not exceed 3,500 barrels per year and specifically, off-sales may not exceed more than 500 barrels. This type of license is administered by the city. Sales made under this type of license must meet certain specific packaging requirements found in Minn. Stat. §340A.
Other City-Issued Licenses
Strong Beer (More than 3.2% Malt Liquor)
Strong beer may be sold without an additional license if the person has an intoxicating liquor license. The City Council may allow, by ordinance, the on-premise sale of strong beer if the person holds both an on-sale wine license and an on-sale 3.2 percent malt liquor license.
One-Day Consumption and Display Permits (Set-Ups)
This license is for clubs and business establishments. The license allows customers to bring their own liquor or to store their own liquor on the premises. This license is issued by the Department of Public Safety.
Tasting and Samples
Licensed establishments in Minnesota, including taprooms and other holders of on-sale intoxicating liquor licenses may hold a tasting as part of the normal operation of the establishment Brewers must submit the Minnesota Brewer Notification to Furnish Malt Liquor for Sampling application.
Keg Sales
No off-sale retailer may sell beer kegs unless the retailer affixes an identification label or tag to each beer keg. The labels must be durable and not easily damaged or destroyed. Both labels and tags must be attached at the time of sale. The identification information must include the retailers name, address, and phone number. In addition the information must include a unique beer keg number assigned by the retailer and a prominent visible warning that the intentional remove or defacement of the label is a criminal offense. When the keg is returned, the retailer must remove the tag or label to be kept on file for no less than 90 days from the date of return.
At the time of a sale, the retailer that sells the keg must record the purchaser’s driver license number, the date and time of purchase, and the beer keg ID number. The purchaser’s signature must also be obtained. This information must also be kept for no less than 90 days.
Areas Where Licenses are Prohibited
A license to sell intoxicating liquor may not be issued in the following areas:
· Locations where zoning ordinances restrict the licenses.
· On the premises of the capitol.
· On or within one-half-mile of the state fair grounds.
· On the University of Minnesota campus.
· Within 1,000 feet of a prison, state hospital, training school, reformatory, or any other institution that is under the control of the commissioner of human services or the commissioner of corrections.
· Anywhere on the east side of the Mississippi River that is within 1/10 of a mile of the University of Minnesota main building.
· Within 1,500 feet of any public school or state university that is not within a city. (Does not apply to temporary licenses issued for events sponsored and approved by the State University).
Federal Licensing
The Alcohol and Tobacco Tax and trade Bureau (TTB) is the federal administration that oversees licensing and regulations of alcohol, tobacco, firearms, and ammunition and to collect taxes on all of those products.
Alcohol and Tobacco Tax and Trade Bureau
Public Information Officer
1310 G Street, NW, Suite 300
Washington, D.C. 20220
Tel.: (202) 453-2000
ttbquestions@ttb.treas.gov
Federal ID Number
To fill out the necessary federal license applications, businesses will need a Federal ID number. You must then register your business.
Brewer’s Notice
Brewer’s must submit the Brewer’s Notice form and the Brewer’s Bond form. Brewers can visit TTB permits online to set up an account and submit the Brewer’s Notice or call 877-882-3277 to request the forms. Brewers will need to submit a Surety Brewer’s Bond and a Collateral Brewer’s Bond.
It is recommended that you file for a Brewer’s Notice online because it is less cumbersome. There are many paper forms that need to be filed, but the online filing is condensed into one application process.
After completing the required introductory steps you will begin the brewery application. A brewery application requires, among other things, a Federal ID number and information concerning how the business in financed. A tracking number is then issued to the applicant, which is used with the Brewer’s Bond form. Once the Brewer’s notice is completed, the Brewer’s Bond form should be completed. You may choose between either a Surety Brewer’s Bond or a Collateral Brewer’s Bond. This form must be mailed to the TTB. If you wish to submit both the Brewer’s Bond and the Brewer’s Notice by mail, rather than online, you may request a packed with the required forms and instructions. To do so, contact TTB National Revenue Center by mail or phone. The contact information is listed below:
TTB National Revenue Center
8002 Federal Office Building
550 Main Street
Cincinnati, OH 45202-3263
(513) 684-2238 or Toll Free: 800-398-2282
Brewers Bond
A Brewers surety bond is a license and permit surety bond that is required by federal and state laws governing the sale, manufacturing, and warehousing of beer. The bond guarantees that the principal will pay the necessary taxes from the sale, manufacturing, or warehousing of beer. TTB requires surety bonds. If the brewery fails to pay the necessary taxes, then the government may make a claim on the bond to recoup unpaid taxes.
State Licensing
Alcohol licensing differs state by state; no two states have the same requirements. There is a complete list of State and Minneapolis license forms and requirements online.
Businesses should register with the Secretary of State and obtain a State of Minnesota Tax Identification number. To get more information about a Tax ID number, call the State of Minnesota Business Records Department, 600 Robert Street North, Saint Paul, MN (651) 296-6181.
Wholesaler/Manufacturer Intoxicating Liquor License
In Minnesota, breweries must apply for a Wholesaler’s/Manufacturer’s Intoxicating Liquor License. Keep in mind that the application requires information regarding the businesses’ zoning permits, so the zoning permits should be obtained before brewers start the license application. A person may sell malt liquor with greater than 3.2 percent alcohol by volume without an additional license if the person has an intoxicating liquor license. For a license to be submitted, the applicant must first file a bond with a corporate surety, cash, or U.S. government bonds payable to the state. Bonds must be in the following amounts:
Manufacturers & wholesalers of intoxicating liquor
$10,000
Manufacturers & wholesalers of wine up to 25% ABW
$5,000
Manufacturers & wholesalers of beer of more than 3.2% ABW
$1,000
Manufacturers & wholesalers of less than 20,000 proof gallons
$2,000
Manufacturers & wholesalers of 20,000 to 40,000 proof gallons
$3,000
Annual License Fees
Annual license fees differ depending on the type of license. The annual fee amount for each license type is listed below.
Manufacturers (except of wine of less than 25% ABV, and brewers making more than 3,500 barrels of malt liquor a year)
$30,000
Manufacturers of wine equal to or less than 25% ABV
$500
Wholesalers (except those of wine of no more than 25% abv, of intoxicating malt liquor, of 3.2% malt liquor)
$15,000
Wholesalers of wines not more than 25% ABV
$3,750
Wholesaler of intoxicating malt liquor
$1,000
Wholesalers of 3.2% malt liquor
$10
Brewers (brewing over 3,500 barrels annually)
$4,000
Brewers (brewing between 2,000 – 3,500 barrels annually)
$500
Brewers manufacturing less than 2,000 barrels of malt liquor per year
$150
Brewpub
$500
In order to raise the amounts of some liquor license fees, the city must first hold a hearing. The city must give mailed notice of the hearing to all affected licensees at least 30 days before the hearing. This requirement applies to on-sale intoxicating liquor licenses; off-sale intoxicating liquor licenses; 3.2 percent malt liquor licenses.
On-Sale Licenses
Intoxicating Liquor License On-Sale
This license permits on-premise consumption of distilled spirits, wine, and strong beer. Fees will vary depending on the class of entertainment chosen. To obtain this type of license you must submit an application for Certification of an On Sale Liquor License, 3.2% Liquor license, or Sunday Liquor License.
Club On-Sale License
This license allows the sale of intoxicating liquor to members and of the club and bona-fide guests. However, the club needs to be in existence for at least three years before a club on-sale license will be issued.
Sunday On-Sale Intoxicating Liquor License
Sunday on-sale liquor license allows on-premise consumption of intoxicating liquor on Sundays. This license is issued to holders of intoxicating liquor on-sale licenses and is issued by the city.
2:00 a.m. Permit
This license allows the sale of intoxicating liquor between the hours of 1:00 to 2:00 a.m. This license is only issued to holders of on-sale intoxicating liquor licenses and is issued by the Department of Public Safety.
Combination On-Sale/Off-Sale Intoxicating Liquor Licenses
This license is issued to establishments for the sale of intoxicating liquor for on-premise and off-premise consumption.
Combination On-Sale/Off-Sale 3.2 Percent Malt Liquor License
This license allows the sale of 3.2 percent beer for both on-premise and off-premise consumption.
Brewpubs: On-Sale Intoxicating Liquor Licenses
Only licensed restaurants with brewing facilities may be issued a brewpub license. The license allows a restaurant to operate with on-sale of beer that is brewed on the premises. The brewery must possess a liquor manufacturer license issued by Minnesota, manufacture less than 3,500 barrels of malt liquor per year for consumption on the premises or for off-sale from the premises, and must not have an ownership interest in any other licensed intoxication liquor or malt liquor manufacturer.
Brewer Taproom License
Certain brewers may qualify for an on-sale malt liquor license, called a taproom license. This license authorizes on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. This license is limited to small brewers. Per the statute, municipalities are allowed to issue the holder of a brewer’s license a “brewer taproom license.” Brewers are limited to one taproom license, but may operate a restaurant at the brewery if they so choose. The law requires the municipality in which the taproom is located to inform the Commissioner of the Minnesota Department of Public Safety of the licensee’s name and information within ten (10) days of issuance of the license.
3.2 Percent Malt Liquor On-Sale Licenses (Beer Licenses)
This license is available to all types of establishments and allows the on-premise consumption of 3.2% beer. This license is issued by the city.
On-Sale Wine License
This license allows the on-premise consumption of wine, along with the sale of food. Some license holders may also be able to sell strong beer with this license, so long as at least 60% of the gross income is from the sale of food.
Temporary On-Sale Intoxicating Liquor Licenses
This license is issued to clubs and nonprofit organizations that have been in existence for at least six years. The license allows the sale of intoxicating liquor for on-premise consumption at events that are sponsored by the licensee. The license is valid up to four days.
Temporary On-Sale 3.2 Percent Malt Liquor Licenses
This license allows the temporary on sale of 3.2 % malt liquor. This license is regulated according to the city, but is available to the clubs, charitable organizations, religious organization, and nonprofit organizations.
Off-Sale Liquor Licenses
Off-Sale Intoxicating Liquor Licenses
This license is only issued to exclusive liquor stores, grocery stores, and drug stores. The license allows for the sale of intoxicating liquor for off-premise consumption. This license also allows exclusive liquor stores to sell tobacco, ice, soft drinks, and mixes. Brewers will need to apply for a Minnesota Brew Pub Off-Sale Intoxicating Liquor License and a Minneapolis Off-Sale Malt Liquor License.
Off-Sale 3.2 Percent Malt Liquor Licenses
This license allows the off-premise consumption of 3.2 percent beer.
Brewpubs: Off-Sale
Brewpubs are allowed to sell beer brewed on their premises in 64 ounce bottles (often called growlers) for off-premise consumption. Under this license, retail sales may not exceed 3,500 barrels per year and specifically, off-sales may not exceed more than 500 barrels. This type of license is administered by the city. Sales made under this type of license must meet certain specific packaging requirements found in Minn. Stat. §340A.
Other City-Issued Licenses
Strong Beer (More than 3.2% Malt Liquor)
Strong beer may be sold without an additional license if the person has an intoxicating liquor license. The City Council may allow, by ordinance, the on-premise sale of strong beer if the person holds both an on-sale wine license and an on-sale 3.2 percent malt liquor license.
One-Day Consumption and Display Permits (Set-Ups)
This license is for clubs and business establishments. The license allows customers to bring their own liquor or to store their own liquor on the premises. This license is issued by the Department of Public Safety.
Tasting and Samples
Licensed establishments in Minnesota, including taprooms and other holders of on-sale intoxicating liquor licenses may hold a tasting as part of the normal operation of the establishment Brewers must submit the Minnesota Brewer Notification to Furnish Malt Liquor for Sampling application.
Keg Sales
No off-sale retailer may sell beer kegs unless the retailer affixes an identification label or tag to each beer keg. The labels must be durable and not easily damaged or destroyed. Both labels and tags must be attached at the time of sale. The identification information must include the retailers name, address, and phone number. In addition the information must include a unique beer keg number assigned by the retailer and a prominent visible warning that the intentional remove or defacement of the label is a criminal offense. When the keg is returned, the retailer must remove the tag or label to be kept on file for no less than 90 days from the date of return.
At the time of a sale, the retailer that sells the keg must record the purchaser’s driver license number, the date and time of purchase, and the beer keg ID number. The purchaser’s signature must also be obtained. This information must also be kept for no less than 90 days.
Areas Where Licenses are Prohibited
A license to sell intoxicating liquor may not be issued in the following areas:
· Locations where zoning ordinances restrict the licenses.
· On the premises of the capitol.
· On or within one-half-mile of the state fair grounds.
· On the University of Minnesota campus.
· Within 1,000 feet of a prison, state hospital, training school, reformatory, or any other institution that is under the control of the commissioner of human services or the commissioner of corrections.
· Anywhere on the east side of the Mississippi River that is within 1/10 of a mile of the University of Minnesota main building.
· Within 1,500 feet of any public school or state university that is not within a city. (Does not apply to temporary licenses issued for events sponsored and approved by the State University).