June 13th, 2011
Direct shipping applications for Maryland are now available on the Maryland Comptroller’s website. Wineries that obtain a Direct Wine Shipper’s Permit may begin shipping into Maryland as early as July 1. Once licensed, a winery may ship up to 18 cases of wine per household per year. The cost of the Direct Wine Shipper’s Permit is $200 annually, and out-of-state applicants must post a surety bond for the alcoholic beverage tax in the amount of at least $1000. The estimated cost to secure the bond through a surety company is $180. Licensed wineries that ship to Maryland must pay excise and sales tax on all shipments made into Maryland and submit quarterly reports.
When applying for the Wine Direct Shipper’s permit, a winery must:
- Register for Sales and Use Tax in the state of Maryland. Online tax registration is also available.
- Apply for a bond. The Direct Wine Shipper Bond form is not yet available but should be posted on the Maryland Tax Forms page in the next few days – check back on our blog for an update when the bond form is posted.
- Complete the Wine Direct Shipper’s Application and mail it to the Maryland Comptroller with a copy of your home state winery license, federal basic permit and the bond.
Maryland will be the first top 20 wine consuming state to open for direct shippers in over five years. Tennessee and Kansas, lower ranking wine consuming states, implemented new direct shipping regulations two years ago. Maryland residents, businesses and local activists have fought a tough battle to allow direct-to-consumer shipments. Because Maryland residents have never had direct access to wines before, the market is ripe with wine consumers looking to expand their wine tastes. Maryland has a relatively low cost of entry for access to a high consumption market—ranked 16th in total wine consumption. Maryland’s 2010 wine sales were up 11.3% year over year.
Start the application process today to ship to Maryland and be the first to market. Save 10% on service fees for your entire order when you order a Maryland license from EasyWineLicensing before July 1. Enter coupon code: MD2011 upon checkout for the discount.