Posts from the Wine Institute Category
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
New Mexico Direct Shipping Applications Available Now and a Must for Wineries
June 17th, 2011
The New Mexico Direct Wine Shipper Permit Application is now available on the state’s Alcohol and Gaming Division website. The state will remain reciprocal until July 1, at which time the new legislation takes effect and wineries must have a permit in order to continuing to ship wine to their New Mexico patrons.
To register for a license, wineries must:
1) Register with the Taxation and Revenue Department Tax for Gross Receipts Tax.
- Registrations may be mailed in or submitted online.
- Attach confirmation of the approved Tax Registration (including the assigned “CRS #”), to the Direct Shipper Application.
2) Submit the 1-page Direct Wine Shipper Permit Application.
- Include a copy of home-state liquor license
- Include the $50 annual permit fee
New Mexico will not accept Direct Wine Shipping Applications until July 1, when the state’s new legislation officially goes into effect. However, wineries may begin the permitting process now by registering to pay Gross Receipts Tax with the Taxation and Revenue Department.
Once licensed, wineries will be responsible for payment of Gross Receipts and Liquor Excise taxes and reporting. Wineries may ship up to two cases per individual per month.
Please note that the new law allows wine retailers with reciprocal shipping privileges to continue to ship wine to New Mexico residents under reciprocal law. No Wine Shipper Permits will be issued to retailers.
Wineries: Start the application process today and continue to ship into New Mexico. Save 10% on service fees for your entire order when you order a New Mexico license from Easy Wine Licensing before July 1. Enter coupon code: NM2011 upon checkout for the discount.
The Old ‘Wine’ State: Maryland to Open to Direct Wine Shipments
May 10th, 2011
After years of repeated attempts to open the state to wine shipping, Maryland wine lovers will soon be able to have wine shipped directly to their doors. Signed by the Governor today, the new law makes Maryland the second state this year — after New Mexico — to pass new direct wine shipping permit legislation. This flurry of wine shipping legislation comes after no new states opened to direct shipping legislation in 2010.
Two important factors paved the path to the passage of direct shipping legislation in Maryland. First, a local citizens organization, “Marylanders for Better Beer and Wine Laws”, kept pressure on the Maryland legislature year after year even though earlier direct shipping bills were defeated. Second, the Maryland Comptroller’s office released a Direct Wine Shipment Report late last year debunking many of the claims made by opponents of wine shipping concerning minor access to wine and harm that might come to local business as a result of wine shipments.
Though retailers were included in original versions of the direct shipping legislation, they were left out of the final language, perhaps in part, because the Comptroller’s Report did not advocate for retail-to-consumer shipping.
The new law takes effect July 1, 2011 and allows wineries to obtain a Direct Wine Shipper’s Permit for $200 (renew annually). Each licensed winery will be allowed to ship up to 18 cases of wine to a single delivery address each year and will be responsible for quarterly reporting and payment of excise and sales taxes on all shipments made into the state. Potential shippers now await permit application and instruction forms from the Maryland Comptroller, which could be made available any time. We will keep you updated as more information becomes available.
Updated North Dakota DTC Reporting Requirements
May 9th, 2011
Effective July 1, 2011, North Dakota law will require that direct-to-consumer (DTC) shippers now be subject to the same $100 per day fee for the late filing of reports that is currently required of in-state wineries and other licensees. Additionally, the penalties for failure to pay or late payment of excise taxes by DTC shippers will now be the same as those covering in-state licensees. Similarly, the state tax commissioner will be granted the same authority it has over in-state wineries and other licenses to make an examination of the books and premises of direct shippers in determining full compliance of relevant state laws and rules.
The annual fee for a Direct Shipper’s license is $50 and must be paid within 30 days of making the initial shipment. Wineries with an approved license may ship up to 3 nine liter cases each month to a consumer. All shipments must originate from the address listed on the licensee’s permit. Applications and reporting information are available on Wine Institute’s website under State Shipping Laws.
by Sally Jefferson, Regional Government Affairs Manager, Wine Institute
The End of Winery Reciprocity. New Mexico Passes Direct Shipping Legislation
April 8th, 2011
New Mexico’s Governor signed SB 445, which creates a wine shipping permit for out-of-state wineries, an important move both symbolically and for wineries seeking to serve customers in that state. Now, wineries from all US states can apply for a permit to ship wine to consumers.
New Mexico will be the last state to change from reciprocity to permit status for winery shipping since it was the last state that had a reciprocity law still on the books for wineries. The move from reciprocity laws to state permit laws was instigated by the 2005 Granholm v. Heald Supreme Court decision. That landmark ruling not only held discriminatory shipping laws to be unconstitutional but also noted a constitutional problem with reciprocity agreements when Justice Anthony Kennedy, writing for the majority, proclaimed that “States should not be compelled to negotiate with each other regarding favored or disfavored status for their own citizens.”
It should be noted that in changing its wine shipping laws, New Mexico has left in place “reciprocity” arrangements for retailer-to-consumer shipping.
The New Mexico Wine Shipping Permit goes into effect on July 1, 2011. It’s provisions include:
Cost of Permit: $50 per year
Bond requirements: None
Limits on Amount of Wine Shipped: 2 cases per individual per year month
Taxes: Sales and Gross Receipts tax must be paid by the direct wine shipping permit holder
Reporting: Due annually
