Archive for October 1st, 2008
Granholm, the Sequel
October 1st, 2008
On September 30, 2008, a federal district court ordered Michigan to give out-of-state retailers access to Michigan consumers to whom local retailers could sell wine. The reasoning in Siesta Village Market LLC v. Granholm closely parallels that of the landmark Supreme Court decision, Granholm v. Heald, in effect rendering Governor Jennifer Granholm a serial violator of the dormant Commerce Clause.
Judge Hood found laws requiring differential treatment of local and interstate commerce to be discriminatory on their face, thereby assuring their invalidity in the absence of showing by the state that there was no less discriminatory way to pursue its legitimate regulatory objectives. She further found that, as in the original Granholm case, the state had not met its evidentiary burden.
The “Granholm II” order enjoins the governor and other state officials from prohibiting selling, delivering and shipping wine through interstate commerce directly to consumers by out-of-state wine retailers, but allows the state to collect taxes on wine sales and to require licenses and permits for direct interstate sales and deliveries, so long they do not discriminate against out-of-state wine retailers. The state and its wholesaler allies are expected to move for a stay pending appeal, though the forcefulness of the court’s opinion puts the result of a motion in doubt. However, the licensing and tax-collecting provisions of the injunction provide opportunities for delays in compliance without a formal stay.
Wisconsin Becomes a Limited State Today: I’ll Have Some Wine with that Cheese, Please
October 1st, 2008
Beginning today, October 1, 2008, Wisconsin is open to direct wine shipments from wineries throughout the country. Direct shipments to consumers in Wisconsin must be shipped under Wisconsin’s new “Direct Wine Shipper’s Permit”; reciprocal shipments of wines are no longer allowed. New direct shipping regulations include: a $200 Direct Shipping license, payment of sales and excise taxes, and quarterly reporting. Additionally, the consumer is limited to receiving no more than 108 liters (12 cases) of wine per year from any combination of licensees; the consumer is responsible for staying within the limit, however an individual direct shipper may not ship over 108 liters of wine to any individual in Wisconsin.
Also included in the legislative changes is the ability for wineries that produce less than 25,000 gallons of wine per year, to sell wine to retailers through a “co-operative wholesaler”. Co-operative wholesalers must be created before December 31st, 2008. To learn more about the legislative changes and co-operative wholesalers, read “Direct Shipping Bill Receives Governor’s Signature“. Also, “Permit Applications Available” contains more detailed information on these legislative updates, and information on how to become permitted as a Direct Wine Shipper in Wisconsin.
