{"data":{"id":"us-ky/krs-243.155","jurisdiction":"us-ky","citation":"KRS 243.155","heading":"Small farm winery license -- Eligibility and application process -- Business","body":"authorized by license -- Direct shipment of wine -- Self-distribution -- Custom\ncrushing services -- Off-premises retail sales outlet in wet territory -- Other\npermitted licenses -- Renewal of license -- Sampling by employees.\n(1) A small farm winery may apply for a small farm winery license. In addition to all\nother licensing requirements, an applicant for a small farm winery license shall\nsubmit with its application a c opy of the small farm winery's federal basic permit\nand proof documenting its annual wine production. The board shall promulgate\nadministrative regulations establishing the form the documentation of proof of\nproduction shall take.\n(2) A small farm winery l icense shall authorize the licensee to perform the following\nfunctions without having to obtain separate licenses, except that each small farm\nwinery off-premises retail site shall be separately licensed:\n(a) Engage in the business of a winery under the te rms and conditions of KRS\n243.120 and 243.130, except that a small farm winery may sell and deliver\nwine produced by it to a retailer as authorized by this section. The\nmanufacture of wine at the small farm winery shall not be less than two\nhundred fifty ( 250) gallons, and shall not exceed five hundred thousand\n(500,000) gallons, in one (1) year;\n(b) Bottle wines produced by that small farm winery and other licensed small\nfarm wineries;\n(c) Enter into an agreement with another licensed small farm winery und er which\nit crushes, processes, ferments, bottles, or any combination of these services,\nthe grapes, fruits, or other agricultural products of the other small farm winery\nfor a production year. The resulting wine shall be considered the product of\nthe smal l farm winery that provides the fruit. The small farm winery\nproviding the custom crushing services may exclude the wine produced under\nthis paragraph from its annual production gallonage;\n(d) If the licensed small farm winery or off-premises retail site premises is located\nin wet territory or in a precinct that has authorized alcoholic beverage sales by\nthe small farm winery under KRS 242.124:\n1. Serve complimentary samples of wine produced by it in amounts not to\nexceed six (6) ounces per patron per day; and\n2. Sell by the drink for on -premises consumption or off -premises\nconsumption pursuant to KRS 243.081, or by the package wine\nproduced by it or by another licensed small farm winery, at retail to\nconsumers;\n(e) Sell by the drink or by the package, at fairs, festivals, and other similar types\nof events, wine produced by it or by another licensed small farm winery, at\nretail to consumers if all sales occur in a wet territory;\n(f) Sell and transport wine produced by  it to consumers, licensed small farm\nwinery off -premises retail sites, wholesale license holders, and small farm\nwinery license holders, except that wine purchased between small farm\nwineries shall not exceed five hundred (500) gallons per year per small farm\nwinery;\n(g) Consume on the premises wine produced by the small farm winery or a\nlicensed small farm winery and purchased by the drink or by the package at\nthe licensed premises, if the small farm winery is located in wet territory;\n(h) Sell wine at re tail to consumers in accordance with KRS 243.027 to 243.029\nif it holds a direct shipper license; and\n(i) Sell and deliver, in accordance with KRS 243.120(1), up to twelve thousand\n(12,000) gallons of wine produced by it annually to any retail license hold er\nas long as:\n1. Any products sold and delivered under this paragraph that are not\notherwise registered by a licensed wholesaler shall be registered with the\ndepartment by the small farm winery;\n2. The small farm winery is responsible for payment of wine wholesale\nsales taxes and reporting of self -distributed wines in accordance with\nKRS 243.884; and\n3. The small farm winery may extend credit on wine sold to retail licensees\nfor a period not to exceed thirty (30) days from the date of invoice, with\nthe date of invoice included in the total number of days.\nThis paragraph shall not apply to small farm winery wholesalers licensed\nunder KRS 243.154.\n(3) If the requirements of KRS 242.1241 or 244.290(5) relating to Sunday sales on the\nlicensed premises of a sma ll farm winery are met, a small farm winery within that\nterritory may sell alcoholic beverages on Sunday only in accordance with this\nsection during the hours and times as permitted in the local ordinance for that\nlocality.\n(4) A small farm winery license holder may also hold an NQ2 retail drink license or an\nNQ4 retail malt beverage drink license if:\n(a) The small farm winery is located in wet territory or in a precinct that has\nauthorized alcoholic beverage sales by the small farm winery under KRS\n242.124; and\n(b) The issuance of these licenses is in connection with the establishment and\noperation of a restaurant, hotel, inn, bed and breakfast, conference center, or\nany similar business enterprise designed to promote viticulture, enology, and\ntourism.\n(5) This section shall not exempt the holder of a small farm winery license from the\nprovisions of KRS Chapters 241 to 244, nor from the administrative regulations of\nthe board, nor from regulation by the board at all premises licensed by the small\nfarm winery, except as expressly stated in this section.\n(6) Nothing contained in this section shall exempt a licensed out -of-state winery from\nobeying the laws of its resident state.\n(7) Upon the approval of the department, a small farm winery license may be renewed\nafter the licensee submits to the department the winery's federal basic permit and\nproof of its annual wine production.\n(8) An employee of a small farm winery may sample the products produced by that\nsmall farm winery for purposes of education, quality co ntrol, and product\ndevelopment.","path":["KRS Chapter 243"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53460","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:53Z","sha256":"abaebc7d270c33b1d9011ec618e5a92784070c6ddba4cbda7dc45518d2d561f0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-243.154","next":"us-ky/krs-243.156"},"notice":"GroundRules: Original legal text. Not legal advice."}