Chapter 125

125.63   Industrial wine permit.

125.65   Permit to solicit for future sales.

125.66   Sale without license; failure to obtain permit; penalties.

125.67   Evading provisions of law by giving away intoxicating liquor; penalties.

125.68   General restrictions and requirements.

125.69   Restrictions on dealings between manufacturers, rectifiers, wholesalers and retailers.

125.70   Trade show samples.

Ch. 125 Note NOTE: Chapter 79, laws of 1981, which created this chapter of the statutes, contains extensive notes explaining the revisions. See the 1981 Session Laws.

subch. I of ch. 125 SUBCHAPTER I

GENERAL PROVISIONS

125.01 125.01 Legislative intent. This chapter shall be construed as an enactment of the legislature’s support for the 3-tier system for alcohol beverages production, distribution, and sale that, through uniform statewide regulation, provides this state regulatory authority over the production, storage, distribution, transportation, sale, and consumption of alcohol beverages by and to its citizens, for the benefit of the public health and welfare and this state’s economic stability. Without the 3-tier system, the effective statewide regulation and collection of state taxes on alcohol beverages sales would be seriously jeopardized. It is further the intent of the legislature that without a specific statutory exception, all sales of alcohol beverages shall occur through the 3-tier system, from manufacturers to wholesalers holding a permit to retailers to consumers. Face-to-face retail sales at licensed premises directly advance the state’s interest in preventing alcohol sales to underage or intoxicated persons and the state’s interest in efficient and effective collection of tax.

125.01 History History: 1981 c. 79; 2005 a. 103; 2007 a. 85; 2011 a. 32.

125.01 Annotation State liquor laws, including licensing requirements, are applicable to liquor establishments owned or operated by either tribe members or non-Indians and located on Indian reservations. Any license issued counts toward the local quota. 75 Atty. Gen. 123.

125.01 Annotation Indian tribes are within the coverage of this chapter; any license issued to a tribe counts toward the local quota. 76 Atty. Gen. 80.

125.015 125.015 Severability. If any provision or clause of this chapter or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

125.015 History History: 2007 a. 20.

125.015 Annotation Interpreting s. 990.001 (11), an unconstitutional clause was found severable. Wisconsin Wine & Spirit Institute v. Ley, 141 Wis. 2d 958, 416 N.W.2d 914 (Ct. App. 1987).

125.02 125.02 Definitions. Except as otherwise provided, in this chapter:

125.02(1) (1) “Alcohol beverages” means fermented malt beverages and intoxicating liquor.

125.02(1c) (1c) “Alcohol vapor device” means any device that provides for the use of air or oxygen bubbled through an alcohol beverage to produce a vapor or mist that allows the user to inhale this alcoholic vapor through the mouth or nose.

125.02(1g) (1g) “Axe throwing facility” means an establishment that provides customers with a venue to engage in the activity of axe throwing and that either derives at least 51 percent of its revenue from fees associated with axe throwing or maintains at the venue at least 5 axe throwing lanes.

125.02(1m) (1m) “Barrel” means 31 U.S. gallons.

125.02(2) (2) “Brewer” means any person who manufactures fermented malt beverages for sale or transportation, except that “brewer” does not include a permittee under s. 125.295.

125.02(2d) (2d) “Brewer group” means a brewer, including all premises for which the brewer holds a permit issued under s. 125.29, together with all of the following:

125.02(2d)(a) (a) All brewers that share membership with the brewer in a controlled group of brewers, as determined under 26 USC 5051 (a) (2) (B).

125.02(2d)(b) (b) All brewers considered with the brewer as one taxpayer under 27 CFR 25.111b (b).

125.02(2d)(c) (c) All franchisees, as defined in s. 553.03 (5), of the brewer.

125.02(2d)(d) (d) All franchisees, as defined in s. 553.03 (5), of the brewer’s franchisor, as defined in s. 553.03 (6).

125.02(2d)(e) (e) The franchisor, as defined in s. 553.03 (6), of the brewer.

125.02(2h) (2h) “Brewpub” means a permittee under s. 125.295.

125.02(2p) (2p) “Brewpub group” means a brewpub, including all premises for which the brewpub holds a permit issued under s. 125.295, together with all of the following:

125.02(2p)(a) (a) All brewpubs that share membership with the brewpub in a controlled group of brewpubs, as determined under 26 USC 5051 (a) (2) (B).

125.02(2p)(b) (b) All brewpubs considered with the brewpub as one taxpayer under 27 CFR 25.111b (b).

125.02(2p)(c) (c) All franchisees, as defined in s. 553.03 (5), of the brewpub.

125.02(2p)(d) (d) All franchisees, as defined in s. 553.03 (5), of the brewpub’s franchisor, as defined in s. 553.03 (6).

125.02(2p)(e) (e) The franchisor, as defined in s. 553.03 (6), of the brewpub.

125.02(2t) (2t) “Brewpub premises” means any premises covered by a permit issued under s. 125.295.

125.02(3) (3) “Brewery premises” means all land and buildings used in the manufacture or sale of fermented malt beverages at a brewer’s principal place of business.

125.02(3m) (3m) “Campus” has the meaning given under s. 36.05 (3).

125.02(3r) (3r) “Caterer” means any person holding a license under s. 97.30 for a restaurant who is in the business of preparing food and transporting it for consumption on premises where gatherings, meetings, or events are held, if the sale of food at each gathering, meeting, or event accounts for greater than 50 percent of the gross receipts of all of the food and beverages served at the gathering, meeting, or event.

125.02(3u) (3u) “Chamber of commerce” means a local chamber of commerce organized under ch. 181 or a similar civic or trade organization organized under ch. 181 to promote economic growth and opportunity within a local geographical area.

125.02(4) (4) “Club” means an organization, whether incorporated or not, which is the owner, lessee or occupant of a building or portion thereof used exclusively for club purposes, which is operated solely for a recreational, fraternal, social, patriotic, political, benevolent or athletic purpose but not for pecuniary gain and which only sells alcohol beverages incidental to its operation.

125.02(4m) (4m) “Commercial quadricycle” has the meaning given in s. 340.01 (8m).

125.02(5) (5) “Department” means the department of revenue.

125.02(5g) (5g) “Division” means the division of alcohol beverages in the department.

125.02(6) (6) “Fermented malt beverages” means any of the following:

125.02(6)(a) (a) Any beverage made by the alcohol fermentation of an infusion in potable water of barley malt and hops, with or without unmalted grains or decorticated and degerminated grains or sugar containing 0.5 percent or more of alcohol by volume.

125.02(6)(b) (b) Any beverage recognized by the federal department of the treasury as beer under 27 CFR part 25, except sake or similar products.

125.02(6d) (6d) “Fulfillment house” means any entity, whether located in this state or elsewhere, that handles logistics, including warehousing, packaging, order fulfillment, or shipping services, on behalf of a person holding a direct wine shipper’s permit under s. 125.535 for wine that is eligible to be shipped to individuals in this state.

Effective date note NOTE: Sub. (6d) is created eff. 1-1-25 by 2023 Wis. Act 73.

125.02(6g) (6g) “Full-service retail sales” means retail sales of fermented malt beverages or intoxicating liquor, for on-premises or off-premises consumption, or the provision of taste samples of fermented malt beverages or intoxicating liquor, or any combination of these activities.

125.02(6m) (6m) “Homemade,” with respect to the making of wine and fermented malt beverages, means wine and fermented malt beverages made by a person’s own efforts and not for a commercial purpose, but does not require that the wine or fermented malt beverages be made in the person’s home.

125.02(7) (7) “Hotel” means a hotel, as defined in s. 97.01 (7), that is provided with a restaurant.

125.02(8) (8) “Intoxicating liquor” means all ardent, spirituous, distilled or vinous liquors, liquids or compounds, whether medicated, proprietary, patented or not, and by whatever name called, containing 0.5 percent or more of alcohol by volume, which are beverages, but does not include “fermented malt beverages”.

125.02(8m) (8m) “Legal drinking age” means 21 years of age.

125.02(9) (9) “License” means an authorization to sell alcohol beverages issued by a municipal governing body under this chapter.

125.02(10) (10) “Manufacturer” means a person, other than a rectifier, that ferments, manufactures or distills intoxicating liquor.

125.02(11) (11) “Municipality” means a city, village or town.

125.02(11m) (11m) “Painting studio” means an establishment that is primarily engaged in the business of providing to customers instruction in the art of painting and that offers customers the opportunity to purchase food and beverages for consumption while they paint.

125.02(12) (12) “Peace officer” means a sheriff, undersheriff, deputy sheriff, police officer, constable, marshal, deputy marshal or any employee of the division or of the department of justice authorized to act under this chapter.

125.02(13) (13) Except as provided in ss. 125.27 (6) and 125.51 (5) (g), “permit” means any permit issued by the division under this chapter.

125.02(14) (14) “Person” means a natural person, sole proprietorship, partnership, limited liability company, corporation or association or the owner of a single-owner entity that is disregarded as a separate entity under ch. 71.

125.02(14m) (14m) “Premises” means the area described in a license or permit, excluding a permit issued under s. 125.175.

Effective date note NOTE: Sub. (14m) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:

Effective date text (14m) “Premises” means the area described in a license or permit.

Effective date note NOTE: Sub. (14m) is amended eff. 1-1-26 by 2023 Wis. Act 73 to read:

Effective date text (14m) “Premises” means the area described in a license or permit, excluding a permit issued under s. 125.175 or 125.24.

125.02(15) (15) “Primary source of supply” means any of the following:

125.02(15)(a) (a) With respect to fermented malt beverages, the brewer or brewpub that manufactured the fermented malt beverages or the exclusive agent designated by this brewer or brewpub.

125.02(15)(b) (b) With respect to intoxicating liquor, the manufacturer, the rectifier, or the exclusive agent designated by the manufacturer or rectifier.

125.02(15m) (15m) “Principal business” means the primary activity as determined by analyzing the amount of capital, labor, time, attention and floor space devoted to each business activity and by analyzing the sources of net income and gross income. The name, appearance and advertising of the entity may also be taken into consideration if they are given less weight.

125.02(16) (16) 

125.02(16)(am) (am) “Rectifier” means any one of the following:

125.02(16)(am)1. 1. A person that rectifies, purifies or refines distilled spirits or wines by any process other than by original and continuous distillation from mash, wort or wash, through continuous closed vessels or pipes, until the manufacture thereof is complete.

125.02(16)(am)2. 2. A person who possesses any still or leach tub or keeps any other apparatus for refining distilled spirits.

125.02(16)(am)3. 3. A person who after rectifying and purifying distilled spirits, by mixing such spirits with any materials, manufactures any spurious, imitation or compound liquors for sale.

125.02(16)(am)4. 4. A distiller or any person under substantially the same control as a distiller who, without rectifying, purifying or refining distilled spirits, by mixing such spirits with any materials, manufactures any spurious, imitation or compound liquors for sale under the name of “whiskey”, “brandy”, “gin”, “rum”, “spirits”, “cordials” or any other name.

125.02(16)(am)5. 5. A person who places intoxicating liquor in bottles or other containers.

125.02(16)(bm) (bm) “Rectifier” does not include a “Class B” licensee that prepares, stores, or dispenses mixed drinks in advance of sale in compliance with s. 125.51 (3) (bg).

125.02(17) (17) “Regulation” means any rule or ordinance adopted by a municipal governing body.

125.02(18) (18) “Restaurant” means any building, room, or place where meals are prepared or served or sold to transients or the general public, including all places used in connection with it and including any public or private school lunchroom for which food service is provided by contract. For purposes of this subsection, “meals” does not include soft drinks, ice cream, milk, milk drinks, ices, and confections. “Restaurant” does not include any of the following:

125.02(18)(a) (a) Taverns that serve free lunches consisting of popcorn, cheese, crackers, pretzels, cold sausage, cured fish, or bread and butter.

125.02(18)(b) (b) Churches, religious, fraternal, youths’ or patriotic organizations, service clubs and civic organizations which occasionally prepare, serve, or sell meals to transients or the general public.

125.02(18)(c) (c) Any public or private school lunchroom for which food service is directly provided by the school, or a private individual selling foods from a movable or temporary stand at public farm sales.

125.02(18)(d) (d) Any bed and breakfast establishment, as defined in s. 97.01 (1g), that serves breakfasts only to its lodgers.

125.02(18)(e) (e) The serving of food or beverage through a licensed vending machine, as defined in s. 97.01 (15p).

125.02(18)(f) (f) Any college campus, as defined in s. 36.05 (6m), institution as defined in s. 36.51 (1) (b), or technical college that serves meals only to the students enrolled in the college campus, institution, or technical college or to authorized elderly persons under s. 36.51 or 38.36.

125.02(18)(g) (g) A concession stand at a locally sponsored sporting event, such as a little league game.