November 27th, 2012
Idaho and New York wine direct shipper licensees can anticipate a simpler licensing process as the new year approaches. These improvements are expected to alleviate some of the burden that accompanies the amount of paperwork attributed to the licensing process. Details on these updates are outlined below.
Previously an applicant had to submit two applications containing the same information: the Beer and Wine Tax Permit Application (BWA) for a wine tax permit, and the Idaho Business Registration (IBR1) for the sales tax permit. The Idaho State Tax Commission updated form BWA to accommodate for both the sales tax and wine tax permits to be applied for on one application by direct shipper applicants. Once the Tax Commission reviews and issues both the sales and wine tax permits, the application is forwarded on to the Idaho State Police’s Alcohol Beverage Control Bureau (ABC) for review and issuance of the direct shippers license. This new process therefore alleviates direct shipper applicants from completing the IBR1 and only requires one application-the BWA-to be completed.
Furthermore, the Idaho Tax Commission has made it easier for direct wine shipper licensees to wave the need for a bond. With the newly designed Wine Direct Shipper Bond Waiver Request Form, applicants can submit a waiver request during the application process. The decision to allow for a bond waiver by direct shippers comes after the Tax Commission reviewed historical data and determined the majority of wine direct shipper licensees typically have returns with a small amount due and therefore a bond is not needed.
For more information on this new process, you may review the Idaho Wine Direct Shipping Requirements.
Beginning January 1, 2013, out-of-state direct wine shipper licenses need to be renewed every 3 years. The idea behind lengthening the license lifespan stems from the New York State Liquor Authority desiring to lessen the burden of renewing every year. Applicants should be aware, however, that the fee is increased to $375-three times more than the current price of $125, to match the new lifespan of the license.
Also to note, in-state winery and farm winery licensees, wine wholesale licenses and wine store and satellite store licensees are also upped to a 3 year limit with subsequent adjusted license fees. Licenses to sell wine at retail for on site consumption will only go to 2 years at twice the current annual fee.
For more information on these changes, you may refer to the advisory available on the New York SLA website.