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North Dakota passes updated limited direct bill

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.

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