Archive for June, 2006
Washington direct shipping requirements
June 30th, 2006
Permit Required: If a WA state winery has a Domestic Winery permit, nothing additional is required. If an out-of-state winery holds a Wine Certificate of Approval, only a no-fee endorsement is required. If an out-of-state winery does not hold a COA, a Wine Shipper Permit (for shipping to consumers only). Fee: $100 license fee + $15 application fee + $5 trade name fee.
Permit Application for wineries who have never shipped before:
* Master Application is to obtain the license. Fill in “Wine Shipper to Consumer” in the “other” field. http://www.dol.wa.gov/forms/700028fillable.pdf* Also, fill out the non-retail WSLCB Addendum: http://www.liq.wa.gov/publications/Liq14952AddendumNonretail.pdf
* and the WSLCB Addendum: http://www.liq.wa.gov/publications/Liq30050.pdf
* Registration with the WA Department of Revenue (DOR) occurs when you file the Master Appllication.
Application for wineries who have already obtained a Certificate of Approval:
* COA “no fee” endorsement: http://www.liq.wa.gov/publications/Liq75650-AddedEndorsement.pdf
* In addition to the WSLCB Addendum: http://www.liq.wa.gov/publications/Liq30050.pdf
Liter Tax Required: Due monthly, on the 20th of the following month. You must submit a report even if no sales have been made during the period.
* $0.2292/L for wine 14%ABV or under
* $0.4536/L for wine over 14%ABV
* Reporting /Liter tax form: http://www.liq.wa.gov/publications/Liq870.pdf
Sales or Use Tax Required: 6.5% Statewide + .015% litter tax + local taxes (ranging from .5% – 2.4%) = tax required. Freight is included as a taxable item. Reporting periods are monthly, quarterly or annually, as determined by the DOR. You must submit a report even if no sales have been made during the period.
* “Combined Excise Tax Return” (Sales or Use Tax): http://dor.wa.gov/Docs/forms/ExcsTx/ComExcsTxRtrn/CETR_06_Q2.pdf
* Addendum for multiple localities: http://dor.wa.gov/Docs/forms/ExcsTx/LocSalUseTx/LocalCityCntySlsUseTxSpplmnt_E-Blank.pdf
* Whether sales or use tax is payable, depends on “nexus.” http://dor.wa.gov/Docs/Pubs/SpecialNotices/2006/sn_06_DirectWineSales.pdf
* Tax Registration: Tax forms will be sent after license approval
Direct Shipping Label Required: containing language that asserts the package cannot be delivered to persons less than 21 years of age or a person who appears intoxicated.
Be sure to use a carrier who follows these guidelines: Must obtain the signature of the person who receives the wine upon delivery. Carrier cannot deliver to a person over 21 or an intoxicated person.
Volume Limit Requirements: None!
Late Update: To view reporting forms for other types of licensees in Washington, please click here.
Colorado permit process
June 28th, 2006
Colorado’s new legislation effecting wine shipments will become effective July 1, 2006. The new permit application is available on Wine Institute’s direct shipping website here. Wineries that have been shipping to Colorado under the reciprocity law DO NOT have to complete a new application. The annual renewal fee for applications will remain $50.00. Wineries must pay excise taxes on a monthly basis. The excise tax payment forms will be mailed to wineries that have completed the Winery Direct Shipper’s Permit Application. A physical visit to the winery is no longer required and there are no quantity limits.
Update on Idaho Direct Shipper's Permit Application process
June 27th, 2006
Wineries can begin applying for Idaho direct shipping permits. Wineries must complete the Idaho Business Registration Form and the Idaho Beer and Wine Tax Application (BWA). Both forms should be submitted to the Idaho Tax Commission with a $1000 Bond, a Certified Copy of the Winery’s License (In California it is the Type 02 License) and a check for $50. Idaho does not have a current bond application available at this time, and is therefore accepting any generic bond application. Also a winery may submit a copy of their state winery license with a signed and notarized statement that it is an unaltered copy of the original, in lieu of a certified copy. The Idaho Tax Commission will forward all of the documents to the Alcoholic Beverage Control Division and the ABC will then issue the direct shipper’s permit. There are monthly reporting requirements.
Update on Idaho Direct Shipper’s Permit Application process
June 27th, 2006
Wineries can begin applying for Idaho direct shipping permits. Wineries must complete the Idaho Business Registration Form and the Idaho Beer and Wine Tax Application (BWA). Both forms should be submitted to the Idaho Tax Commission with a $1000 Bond, a Certified Copy of the Winery’s License (In California it is the Type 02 License) and a check for $50. Idaho does not have a current bond application available at this time, and is therefore accepting any generic bond application. Also a winery may submit a copy of their state winery license with a signed and notarized statement that it is an unaltered copy of the original, in lieu of a certified copy. The Idaho Tax Commission will forward all of the documents to the Alcoholic Beverage Control Division and the ABC will then issue the direct shipper’s permit. There are monthly reporting requirements.
New laws take effect in four states on July 1st
June 25th, 2006
Hello again, back in the swing of things after a nice two week break. We’ve seen some big developments in the world of wine direct shipping over the last two weeks that we’ll look at in more detail over the next few weeks.
July 1st is a huge day for direct shippers as new laws take effect in Washington, Idaho, and Colorado. We also just learned that HB 1968 was signed by the Governor of Hawaii on Thursday and will also take effect on July 1st. We’ll give you the full breakdown on the new rules and permit requirements in each of the these states this week. It is important to note that all four were previously “reciprocal” states and are now moving to a limited direct model to comply with the Granholm ruling. By my count, that will leave only seven reciprocal states (Illinois, Iowa, Missouri, New Mexico, Oregon, West Virginia, and Wisconsin) after July 1st.
We will also look at other direct shipping developments around the country in the near future, including legislation in Kansas and Pennsylvania, the appeal of the Costco ruling in Washington, and the lawsuits filed in California to allow the direct shipment of wine by retailers.
