Archive for July, 2007
Missouri to end reciprocity on August 28th
July 20th, 2007
On July 13th, Missouri Governor Matt Blunt signed into law SB 299. SB 299 changes Missouri’s current status as a reciprocal shipping state to a limited/direct shipping state. Beginning August 28th, 2007, in-state and out-of-state wineries may obtain a Direct Shipper’s permit and ship up to 2 cases per month, up from the previous 2 cases per year limit.
Wineries will be required to renew the Direct Shipping permit annually, remit excise and sales tax, and file reports of all transactions. Common carriers will also be required to obtain a license to carry and deliver alcoholic beverages.
SB 299 also continues to allow in-state retailers and retailers from reciprocal states to ship directly to consumers at the previous limit of 2 cases per year.
The Missouri ABC is currently drafting its Direct Shippers permit application and reporting requirements. These documents should become available sometime later this month. We will provide updates on the permit documents, tax rates, etc, as they become available. Check back soon.
Update: The Missouri LCD confirmed that sales tax will not be required for out of state wine shippers with no nexus in MO (see the strike-through in the post above).
More Information about the West Virginia direct shipping application process
July 16th, 2007
There have been questions from wineries about the application process in West Virginia. Hopefully, this post will help clarify the process.
All wineries must apply for a Direct Shipper’s Permit and pay the $150 annual registration fee to the West Virginia Alcohol Beverage Control Administration. In addition all wineries must register with the Department of Tax and Revenue and pay excise, state and municipal taxes. Excise taxes are due on or before the 15th of the following month. The due date for state and municipal sales tax varies according to a winery’s total sales. The state sales tax for WV is 6% and the municipal tax is 5%.
Wineries that are Corporations or Limited Liability Companies (LLCs) have additional requirements. Only LLCs and Corporations are required to obtain a Certificate of Authority from the WV Secretary of State.
Wineries that are LLCs are required to have a Certificate of Authority from the West Virginia Secretary of State before they can receive a Direct Shipper’s Permit. LLCs can obtain a Certificate of Authority by completing Form LLF-1 and paying the necessary fees. An LLC is required to pay a registration of $150 annually and a $25 Attorney in-fact fee annually. The total an LLC would pay annually is $175. The attorney in-fact fee is prorated based on the month the application will be received.
Wineries that are Corporations must also register with the Secretary of State. Corporations must complete Form CF-1 in order to obtain a Certificate of Authority and pay 3 separate fees. A for profit corporation would pay 1) License tax for full year beginning in July of $250, 2) Registration fee of $100 and 3) Attorney in-fact fee $30 The annual fees for a corporation would total $380. The license tax and attorney in-fact fees are prorated based on the month the application will be received.
More information about the application process and links to the forms can be found on the Wine Institute website.
North Dakota Updates Direct Shipping Forms
July 15th, 2007
North Dakota has updated its Direct Shipping License Application and Alcohol Liquor Tax Report. Wineries are now required to file the direct shipping license application and renewal form electronically. The license must be renewed annually by January 1. Wineries that are unable to file the license application electronically may request permission to file paper reports by contacting the Alcohol Tax Section in North Dakota at 701-328-2702. The Annual Liquor Tax Report (Schedule H) has also been revised. The Liquor Tax Report is in the form of an excel worksheet and may be submitted electronically or by traditional mail. The Liquor Tax Report is an annual report and due on or before January 15. The forms can be found on the North Dakota page of the Wine Institute website at under relevant documents.
ND Tax Newsletter on Direct Shipping
Live! ShipCompliant Users Conference 2007
July 13th, 2007
We are streaming our users conference currently running in Napa, CA:
Update: The morning session of the 2nd Annual ShipCompliant Users Conference is now over. Thank you to everyone that attended both on site and virtually. If you are interested in viewing the seminar at a later date, please drop us a line.
Proposed Wisconsin Budget Could Affect Direct Shipping and Self Distribution
July 9th, 2007
The Wisconsin Senate amended and passed the proposed 2007-09 biennial budget bill to include a Direct Shipper’s Permit for wineries. As is, the amendment removes Wisconsin’s reciprocal language and allows permitted wineries to ship up to 27 liters per year directly to individual consumers. However, the bill would also restrict the amount of wine consumers can purchase directly from all wineries across the country to 27 liters per year.
If Passed, the amendment would also create a fee structure for the Direct Shipper’s Permit. For wineries that ship more than 90 liters annually into Wisconsin, the fee would be $1,000.00. Wineries shipping between 27 and 90 liters per year would pay a fee of $500.00, and wineries that ship less than 27 liters of wine annually to Wisconsin would pay a fee $100.00.
Furthermore, wineries wishing to ship directly to Wisconsin consumers would be required to obtain a tax registration certificate, report all wines shipped, their prices, along with the name, address, and age of the person to whom they were shipped annually.
Finally, the amendment would remove a winery’s ability to sell directly to retailers. Under the proposed law, wineries would be forced to sell their wines through a licensed wholesaler. Reportedly, wine distributors in Wisconsin claim the amendment was necessary to comply with Granholm. However, the amendment has received strong criticism from Wisconsin vintners who fear that the loss of self distribution privileges would cause significant losses in revenue.
The budget proposal will be considered next by the Wisconsin House of Representatives. As always, the ShipCompliant Research Team is closely monitoring the progress of Wisconsin’s Budget Bill and will report as updates occur.
