Author Archive
Louisiana Increases Volume Limit for DTC Shipping
August 23rd, 2011
Louisiana recently made an adjustment to its direct-to-consumer wine shipping law that benefits the industry and consumers. The volume limit for direct-to-consumer shipping has increased from 4 cases per consumer each year to 12 cases (144 750ml bottles) per consumer each year. Wineries must have a direct shipping permit in order to ship to consumers in Louisiana. The annual fee is $150 and direct shippers are required to pay sales and excise taxes and file monthly reports. However, beginning January 1, 2012 Louisiana will transition to quarterly reporting periods.
Annie Bones, State Relations – Wine Institute
Kansas Issues Revenue Ruling and Amends License Term
September 20th, 2010
Governor Parkinson of Kansas signed SB 452 into law, changing the license term for a Special Order Shipping License from one year to two years. The legislation became effective on July 1, 2010. The fee for a new Special Order Shipping License was adjusted to $150 to reflect the new two-year license term. Current holders of a Special Order Shipping License are now required to renew their license for a period of two years and pay a $110 fee. Wineries applying for a new license have two options. Option 1) Pay the two year license fee in full. Option 2) Pay half of the license fee plus the registration fee with their application and pay the remaining half of the license fee plus a 10% surcharge within one year of the date the license was issued. It should be noted that a failure to pay the remaining license fee and 10% surcharge by the due date will result in the automatic cancellation of the license.
On August 23, 2010 the Kansas Department of Revenue issued Revenue Ruling, No. 19-2010-03 which states that taxpayers are not required to remit alcoholic beverages gallonage tax due and owing for the reporting period, if the amount is less than $5. The change in policy was made due to the administrative costs associated with processing payments of less than $5. The ruling does not exempt a licensed direct shipper from any reporting requirements. The reporting period for Special Order Shipper Licensees is one calendar year. Gallonage reports are due no later than January 15th of the following year.
The Special Order Shipping License is required for all offsite shipments to consumers in Kansas and requires wineries to use an approved age verification service and to pay enforcement tax and gallonage tax when applicable. The shipping license is not required for on-site sales. Any winery may ship to a Kansas consumer that purchases wine when visiting their tasting room. Applications and additional direct shipping information is available on the Wine Institute website.
-Annie Bones, State Relations, Wine Institute
Massachusetts Remains Elusive for Direct Shippers
September 16th, 2010
On 1/14/10 the First Circuit Court of Appeals in Boston ruled in favor the plaintiff in the Massachusetts FWC v. Jenkins litigation. The ruling affirmed the lower court’s order that struck down the capacity caps and wholesaler exclusions which are included in the Massachusetts direct-to-consumer shipping statute and prevented over half of the wineries in the United States from being eligible to ship to MA consumers. On 4/12/10 the state announced that they will not be seeking an appeal to the Supreme Court, thus leaving this decision as the final law in the 1st Circuit. Despite the favorable ruling, obstacles continue to make shipping to consumers in MA problematic.
One very serious problem with the existing law not addressed during the FWC v. Jenkins litigation is an aggregate volume limit of 240 liters (26.67 cases) per household per year. The 240 liter volume limit refers to the total amount of wine each household can receive from all licensed direct shipper each year. It is not possible for a winery to track the amount of a wine each household receives via direct-to-consumer shipments, yet the licensed shipper is liable for any shipments that cause a household to exceed the 240 liter volume limit. The Massachusetts Alcoholic Beverages Control Commission (ABCC) has not provided any guidance on how to comply with this rule.
The licensing requirements for common carriers (FedEx and UPS) pose a second problem for direct shipping to MA. MA has extremely onerous licensing requirements that are difficult for common carriers to comply with. At this time, NO common carriers have approved MA for INTERSTATE* direct-to-consumer shipping. Only FedEx Ground services MA on a limited basis, and has a license for INTRASTATE** direct-to-consumer wine shipments. The common carriers provide updates on their wine shipping status on the respective websites www.fedex.com/us/wine and www.ups.com/wine.
Legislation was drafted and introduced during the 2010 legislative session that to address the problems with common carrier licensing requirements and direct-to-consumer shipping. However the legislature was primarily focused on election year issues and adjourned without passing the bills. It is anticipated that similar legislation will be introduced in 2011.
*INTRASTATE -Commerce having an origin, destination and entire transportation within one state
**INTERSTATE-Commerce that involves transportation of goods from one state to another
–Annie Bones, State Relations – Wine Institute
Hawaii Amends Due Date for Gallonage Tax
June 14th, 2010
Effective July 1, 2010, the filing and payment due date the Hawaii Gallonage Tax, will change from the last day of the month to the 20th day of the month. Wineries shipping to consumers in Hawaii are required to file a “Combined Monthly Return of Liquor Tax and Report of Wine Gallons and Dollar Volume of Taxable Sales” (Form M-18) and pay gallonage tax to Hawaii’s Department of Taxation each month. Please see the document, “Announcement No. 2010-02,” issued by the Department of Taxation for additional information about changes to the payment of taxes in Hawaii.
By Annie Bones, State Relations – Wine Institute
New Hampshire Updates Monthly Reporting Form
April 9th, 2010
The New Hampshire Liquor Commission has just established a new fax line dedicated to direct shipping. Direct Shippers should fax their monthly report to the new fax number 603-271-8424 on or before the 10th of the following month. Direct Shipping Reports must be filed each month regardless of activity. Wineries with no shipments to report are encouraged to email their reports as attachments to directshippers@liquor.state.nh.us instead sending via fax. The Direct Shipping Monthly Report form has been updated with the new fax number and is posted on the Wine Institute website. Should you have any questions please contact Annie Bones, Wine Institute’s State Relations Coordinator, at 415-356-7530 or abones@wineinstitute.org.
by Annie Bones, State Relations – Wine Institute
