(Disclaimer: The information provided herein is intended to be a guide to the basics of retail-to-retail transfers. Such information is not intended to be a substitute for statutory or rule language and does not include all transfer requirements. Please consult the Illinois Liquor Control Act, Illinois Liquor Control Commission Rules, and/or Illinois Liquor Control Commission transfer forms for additional requirements)
Q: May a retailer sell, purchase, transfer, or receive a transfer of wine and spirits products from another retailer?
A: No. Unless the Illinois Liquor Control Commission preapproves a written application to transfer alcoholic liquor to another location, complies with transfer requirements of 235 ILCS 5/6-37 or 235 ILCS 5/6-38, or otherwise complies with Section 100.250 of the Illinois Administrative Code. If a retailer is found to have transferred wine and spirits products to another retailer contrary to law, the retail license may be subject to a warning, fine, suspension or revocation.
Q. May a retailer transfer alcoholic liquor to another retailer or may a retailer purchase alcoholic liquor from another retailer?
A. No. Unless expressly authorized by the Illinois Liquor Control Act ("Act") or Illinois Liquor Control Commission Rules ("Rules"). In some cases, the illegal purchase and/or importing of alcoholic liquor from a non-distributor may result in criminal penalties including a felony.
Q. How do the Act and Rules expressly authorize the transfer of alcoholic liquor from one retailer to another retailer?
A. In some limited circumstances, the Act and Rules authorize a retailer to complete or file an Illinois Liquor Control Commission transfer form (See 235 ILCS 5/6-37, 235 ILCS 5/6-38; 11 Ill. Admin. Code 100.250). Transfer forms may be found on the Commission website under "Forms/Applications" and "Other General Forms."
Q. What types of retailer-to-retailer transfer forms are there?
A. 1. One Time Transfer ("XFER 100")
2. Percentage Based Transfer ("XFER 101")
3. Common Ownership (non-percentage based) Transfer ("XFER 102")
Q. When do I complete the One Time Transfer ("XFER 100)?
A. Anytime a retailer seeks prior approval of a transfer that is not a wine and spirits only "percentage based transfer" or a wine and spirits only transfer between common owners. The most common form of One-Time-Transfers approvals are for business closure transfers to another store and transfers as a result of a disaster or Act of God. This form must be submitted and approved by the Commission prior to the transfer.
Q. When do I complete a Percentage Based Transfer form ("XFER 101")?
- Wine and spirits only – When one retail licensee transfers wine and spirits products to another commonly owned retail licensee based on a monthly percentage of wine and spirits wholesale purchases.
Q. What are some of the conditions of a Percentage Based Transfer?
1. Transfer may be only from an On-Premises Only Retailer to an On-Premises Only Retailer OR from an Off-Premises Only Retailer to an Off-Premises Only Retailer
2. For On-Premises Only retailer transfers, the transfer amount is limited to 5% of the average monthly purchases of the On-Premises Only transferring retailer (For Off-Premises Only retailer transfers, 3% of average monthly purchases)
3. Average Monthly Purchases = 12-month rolling average of the total volume purchased over the 12 most recent months previous to the month in which the transfer is made and dividing that total by 12.
Q. When do I complete a non-percentage based Common Ownership Transfer form ("XFER 102")?
A. Wine and spirits only – When one retail licensee transfers wine and spirits products to another retail licensee based on the shared ownership of greater than 5% between more than one retailer and other various factors (identified on the form).
Q. Which forms do NOT need to be pre-approved by the Commission?
A. Percentage Based Transfers (XFER 101) and Common Ownership Transfers (XFER 102).
Q. Does a retailer have to notify distributor of a retail-to-retail transfer?
A. Yes, for a percentage based XFER 101. For this transfer, retailers may only transfer wine and spirits within one distribution territory.
Q. If a retailer involved in a transfer has been placed on the wine and spirits delinquency list, may it conduct a retailer-to-retailer transfer?
Q. What is the difference between Common Ownership and a Wholly Owned establishment?
A: Common Ownership signifies at least one person of two retailers exceeds 5% ownership of both entities. This is required for XFER101 & XFER102. Wholly Owned signifies the two establishments share ownership completely. This is required for manufacturer-based transfers authorized by other transfer forms (XFER103, XFER104, & XFER105).
Q: How long do I need to retain records for a previously completed transfer?
A: All licensees involved in the transfer will need to retain the form and its supporting documents for a period of 90 days on the licensed premises and for 3 years overall after the transfer date.
Q: Which transfer forms require an inventory and what information needs to be included?
A: XFER100, XFER101, and XFER102 require an inventory alongside the request form. The inventory should include: the product brand name(s), container sizes, and number of containers.
Q: My license hasn't been issued yet, can I still complete a transfer?
A: No, both the originator and recipient locations must be up to date and completely licensed with the State of Illinois. (Exception: A XFER100 may be filed with a new application when a new applicant has completed an asset purchase of alcoholic liquor from the prior retailer licensee at the same location).
Q: What if the transfer occurred prior to receiving approval of a One-Time-Transfer?
A: An investigative case will be created and your license may be warned, fined, suspended, or revoked. Please allow up to 3 days for transfers to be processed.
Q: What are my tax obligations after completing a transfer?
A: For more information on this, please contact the Illinois Department of Revenue at (800) 732-8866 or (217) 782-3336. Representatives are available Monday through Friday, 8am - 5pm.
Q: I ran out of product at my retail location. Can I purchase product from an out-of-state retailer or any other out-of-state business for resale in Illinois?
A: No. Any retailer who knowingly causes alcoholic liquors to be imported directly into the State of Illinois from outside of the State for purpose of furnishing, giving, or selling, except having received the product from a duly licensed distributor or importing distributor, shall have its license suspended for 30 days for the first offense and for the second offense, shall have its licensed revoked by the Illinois Liquor Control Commission.
Q: May a retailer sell, purchase, transfer, or receive a transfer of malt beverage or malt-based seltzer products from another retailer?
A: No. Unless the Illinois Liquor Control Commission preapproves a written application to transfer alcoholic liquor to another location or the retailer otherwise complies with Section 100.250 of the Illinois Administrative Code (XFER 100). If a retailer is found to have transferred malt beverage or seltzer products to another retailer without the prior approval of the Commission, the retail license shall be subject to a fine, suspension or revocation.