Archive for April, 2007
North Dakota passes updated limited direct bill
April 30th, 2007
Governor John Hoeven signed Senate Bill 2135 (mentioned previously here) this month and the new rules will go into effect on August 1st, 2007. SB 2135 updates the previous direct shipping rules to increase the monthly quantity limits for wineries and retailers to 7.13 gallons (27 liters or 3 standard 9 liter cases) per month from 1 case per month. The bill also removes the previous ambiguous reciprocity language (anyone remember the blue and yellow stripes on ND on the Wine Institute map?) that that was never enforced by North Dakota.
Wineries and retailers that have a current permit in North Dakota should not have to get a new permit to comply with the new laws. Wineries and retailers will be required to continue to report and remit sales and excise taxes.
See the amended language below:
… an individual twenty-one years of age or older who imports or transports into this state 7.13 gallons [27 liters] or less of wine, two hundred eighty-eight fluid ounces [8517.18 milliliters] or less of beer, or 2.38 gallons [9 liters] or less of any other alcoholic beverage per month for personal use and not for resale from a person holding a valid manufacturer’s or retailer’s license issued by the state of its domicile. Every package of alcoholic beverages shipped directly to an individual in this state must be labeled with conspicuous words “SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”. A shipper shall obtain the signature of an individual twenty-one years of age or older before delivering any alcoholic beverages shipped directly to an individual in this state. A manufacturer or retailer selling or shipping alcoholic beverages under this subsection shall obtain a direct shipping permit from the state tax commissioner and pay an annual fee of fifty dollars within thirty days of making the first shipment. A direct shipper shall report and pay the wholesaler and retailer taxes to the state tax commissioner on all alcoholic beverages sold to residents in this state at the rates set forth in sections 5-03-07 and 57-39.6-02. The reports are due January fifteenth of the year following the year sales and shipments were made. When the fifteenth day of January falls on a Saturday, Sunday, or legal holiday, the due date is the first working day thereafter. The report must provide such detail and be in format as prescribed by the state tax commissioner. The state tax commissioner may require that the report be submitted in an electronic format approved by the state tax commissioner.
Florida may revoke wine shipping access on May 5th
April 10th, 2007
At least three bills that address wine direct shipping are pending in the Florida legislature in the current session. Senate Bill 126 (Saunders) and Senate Bill 2282 (Geller) both include restrictive “capacity caps” that would prohibit any winery that produces more than 250,000 gallons per year from shipping directly to Florida residents. House Bill 1217 (Bogdanoff) does not include any capacity caps and is based on the model direct shipping bill. Wineries and wine consumers are supporting HB 1217 while wine wholesalers are pushing the capacity caps.
Since February of 2006, wineries have been able to ship to Florida under a determination by the Department of Business & Professional Regulation (DBPR) that helped bring Florida into compliance with Granholm until more permanent legislation was passed. However, the DBPR is now hinting on their wine direct shipping website that if legislation is not passed by May 5th, they may revoke the right to ship wine to Florida until legislation is finalized.
IMPORTANT
This website is provided for informational purposes only and is not legally binding. The Florida Legislature is considering legislation on the wine shipment issue this legislative session and is expected to pass legislation that directly impacts wine shipment into Florida. For your convenience a link to the web pages of the Florida House of Representatives (www.myfloridahouse.gov) and the Florida Senate (www.flsenate.gov) are provided so that you might be aware of pending legislation; you should contact your legislator for additional information. This website will remain as a resource until the last day of Session, May 4, 2007.
A federal court ruling on shipment of wine from out of state wineries to Floridians precludes enforcement of the ban on direct wine shipments from non-Florida wineries to Florida consumers. The ruling did not limit the state’s authority to collect taxes on wine or to enforce the prohibition of the sale of alcoholic beverages, including wine, to a person under the age of 21.
The Department of Business and Professional Regulation remains responsible for the regulation of all alcoholic beverages in Florida.
Current ruling:
MyFlorida.com
Bill texts:
Senate Bill 2282 (Geller)
House Bill 1217 (Bogdanoff)
Senate Bill 126 (Saunders)
Related articles:
Sun Sentinel
Business Wire (Free the Grapes!)
Tampa Bay Business Journal
South Florida Business Journal
Jacksonville Business Journal
