> For the complete documentation index, see [llms.txt](https://crushsuite.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crushsuite.gitbook.io/docs/compliance/getting-started/setting-up-state-alcohol-fees.md).
# Setting Up State Alcohol Fees
{% hint style="info" %}
**You are here:** Phase 2 of 3: Configure
You'll need about 10 to 15 minutes for this step. You'll choose which states charge a fee and set the amount for each one.
Next: [Configuring Your Shipping Profile](/docs/compliance/getting-started/configuring-your-shipping-profile.md)
{% endhint %}
## Setting Up State Alcohol Fees
States charge their own taxes on alcohol on top of normal sales tax. CrushSuite lets you add a **compliance fee** to each order to cover this. It's charged as its own line at Shopify checkout, separate from sales tax.
The fee is an estimate to help you collect alcohol tax. It doesn't track live state tax rates, and you're still responsible for collecting and reporting the right taxes.
***
### What Are State Alcohol Fees?
Many states charge an excise tax on wine, usually based on volume. CrushSuite adds a fee product (for example "State Alcohol Fee") to the order at checkout, sized to the amount of wine in the order.
{% hint style="info" %}
**Before You Start:**
* **Set your licensed states first.** The **Manage State Compliance Fee** button stays greyed out until CrushSuite knows which states you're licensed in. Vinoshipper stores get these from Vinoshipper. Self-managed stores set them under **Manage State Licenses** on the same page.
* **Pick a display title** for the fee, such as "State Alcohol Fee" or "State Compliance Fee". Customers see this at checkout. You can't save without one.
* **Have your per-state rates ready** if you have them, **per gallon**. If you don't, CrushSuite suggests a starting amount for each state.
{% endhint %}
***
### Fees Are Entered Per Gallon
The amount you type for each state is the fee **per gallon** of wine, not per bottle. A standard 750ml bottle is about one fifth of a gallon, so:
| Fee per gallon you enter | Charged per 750ml bottle |
| ------------------------ | ------------------------ |
| $1.00 | about $0.20 |
| $5.05 | about $1.00 |
| $10.09 | about $2.00 |
To see what a rate means per bottle, hover over the **?** next to the amount. It shows the fee for each bottle size. The amount may change slightly after you save, because it's rounded to the cent per 750ml bottle.
{% hint style="warning" %}
If you type a per-bottle figure into the per-gallon box, you'll charge about one fifth of what you meant to.
{% endhint %}
***
### How Bottle Size Affects the Fee
CrushSuite adds up the wine in the whole order and counts it in **750ml units, rounded up**. The fee is the number of units times your per-750ml rate.
Because the total is rounded up, a single small bottle counts as a full unit:
| Wine in the order | Total volume | Fee units |
| -------------------- | ------------ | --------- |
| 1 × 375ml | 375ml | 1 |
| 2 × 375ml | 750ml | 1 |
| 3 × 375ml | 1,125ml | 2 |
| 3 × 750ml | 2,250ml | 3 |
| 1 × 1.5L | 1,500ml | 2 |
| 2 × 750ml + 1 × 1.5L | 3,000ml | 4 |
{% hint style="info" %}
The size guide in the **?** tooltip shows a 375ml bottle at half the 750ml fee. That's the rate for the wine itself. At checkout the total is rounded up, so a customer buying one 375ml bottle pays the full one-unit fee.
{% endhint %}
Only products synced to CrushSuite with a **size** count. A product with no size adds nothing to the total, so an order of only those products is charged no fee. Check the **Products** page for any wine marked **Missing size**.
***
### How to Configure State Alcohol Fees
1. Open the **CrushSuite app** in your Shopify Admin.
2. Go to **Compliance** > **Tax & Licensing**.
3. Click **Manage State Compliance Fee**.
4. **Enter the title** in **Title of compliance fee product added at checkout** (for example "State Alcohol Fee").
5. **Choose an image** under **Select a product image for the fee**. There are three to pick from. You can't upload your own.
6. **Turn on the fee for each state** by ticking its box in the **Alcohol Fee** column. You can only tick states you're licensed in. The others are greyed out.
7. **Set the amount** in the **Fee per Gallon** column for each state you ticked. CrushSuite fills in a suggested amount to start from.
8. Click **Save** at the top of the page. You'll see **"Compliance Fee Saved"**.
{% hint style="warning" %}
**These rates are yours to keep current.** The suggested amounts are estimates based on what we see across our client base. They're a starting point, not a live tax feed. Check them against your own tax advice before you go live, and review them when state rates change.
{% endhint %}
When you save for the first time, CrushSuite creates a hidden fee product in Shopify, with one variant for each state. Don't delete it, and keep it published on the **Online Store** sales channel. If it's unpublished, orders go through without the fee.
Fee changes can take up to a minute to show at checkout.
***
### How Fees Appear at Checkout
The fee is **not** shown in the cart. When the customer passes the compliance form, CrushSuite adds the fee and sends them to Shopify checkout, where it appears as its own line item with your title, the state, and the number of units.
The fee is based on:
* The **shipping state** the customer entered in the compliance form (which rate applies)
* The **total volume of wine** in the order (how many units)
A state is charged only if you're licensed there **and** you've ticked its **Alcohol Fee** box.
The fee at Shopify checkout. The quantity is the number of 750ml units, so it also counts toward the item total.
The fee is only added through your online store's compliance form. Orders you create yourself (draft orders, POS) don't get it automatically.
***
### Shopify Plus Stores
On Shopify Plus, CrushSuite also checks the fee inside Shopify checkout. For **Vinoshipper** stores, the fee line can include up to three parts:
1. **Your state fee**, worked out as above.
2. **Other fees Vinoshipper reports** for that order, such as a bottle deposit.
3. **A sales tax top-up**, if Vinoshipper's sales tax for the order is higher than Shopify's estimate. This is added once the customer picks a shipping rate.
The fee never drops below part 1. The fee line shows **Status: Estimated** while it uses your state fee alone, and **Status: Calculated** once Vinoshipper's figures are applied. If Vinoshipper can't give an estimate, your state fee is charged on its own. Self-managed stores on Plus get part 1 only.
***
### Example Calculations
**Customer in a state with a fee of $5.05 per gallon (about $1.00 per 750ml unit):**
| Wine in the order | Fee units | Fee total |
| -------------------- | --------- | --------- |
| 3 × 750ml bottles | 3 | $3.00 |
| 1 × 1.5L bottle | 2 | $2.00 |
| 1 × 375ml bottle | 1 | $1.00 |
| 2 × 375ml bottles | 1 | $1.00 |
| 2 × 750ml + 1 × 1.5L | 4 | $4.00 |
***
### Common Mistakes
**Entering a per-bottle amount.** The box is per gallon. Check the **?** tooltip to see what customers will pay per bottle.
**Forgetting to save.** Ticking a state doesn't save it. Click **Save** at the top of the page and wait for **"Compliance Fee Saved"**.
**Leaving a ticked state at $0 on your first save.** On the first save, a ticked state with a $0 fee is set to $0.10 per unit. Untick states you don't want to charge.
**Unpublishing or deleting the fee product.** The fee product in Shopify must stay published on the Online Store. If it's missing or unpublished, checkout goes ahead with no fee and you won't get a warning.
**Wines with no size.** A wine without a size adds nothing to the fee. Fix any **Missing size** products on the Products page.
**Not testing at checkout.** Place a test order after setting fees and check that the fee line appears at checkout with the right amount. See the [Go-Live Checklist](/docs/compliance/getting-started/go-live-checklist.md).
