Issue link: http://read.dmtmag.com/i/52520
COMPLIANCE DIRECT-TO-CONSUMER SHIPPING LAWS FOR WINERIES State Does State Allow Shipping? If Yes Cost of Permit Listed. AL AK AZ On-Site AZ Off-Site AR CA CO CT DE DC FL GA ON-SITE GA OFF-SITE $315.00 Prohibited (see notes) no permit required no permit required Prohibited No Permit Required No permit required $300.00 (only wineries producing less than 20,000 gallons annual are eligible for permit) Prohibited $10.00 (for CA wineries permit and fee are included in 02 license) $50.00 (plus $100 initial filing fee) Unlimited Unlimited 2 cases every 2 months per consumer 1 case per person per month Unlimited No permit required for on-site sales. 5 cases per household per calendar year $50.00 12 cases per person or address per calendar year HI ID IL separate permit and fee for each county: Maui $48, Oahu $48, Kaui $48, Hawaii $120 Yes Yes Yes see notes No yes No Yes 6 cases per year per household $50.00 24 cases per consumer per calendar year Permit Required, Fee Ranges from $150 - $1000 based on size IN IA KS On-Site KS Off-Site $100.00 (wineries with a distributor in IN are prohibited from shipping to consumers, can apply for a permit 120 days after terminating wholesaler) Initial purchase must be on-site $25.00 no permit required for on-site sales $150 for initial 2-year permit, $110 to renew a permit for 2 years. 12 cases per calendar year per consumer per winery 24 case winery per consumer / 3,000 case winery total - 24 case consumer aggregate total Unlimited Unlimited 12 cases per address or consumer per winery per calendar year yes (it is called gallonage or liquor tax) Yes Yes Yes No Yes na No Consumer Pays Use Tax No Yes Yes (it is called "General Excise Tax" instead of Sales Tax) Yes Yes Determined by Address being shipped to (4% state tax plus local tax) 4% (except Honolulu which is 4.5%) 6% (except for Nez Perce County which is 6.5%) 6.25% No Yes if not already registered, No fee required No No Brands must be registered. Including brands sold throught the 3-tier system. No fee is required. No No No No NEW PERMIT LAW effective beginning 7/1/08. 12 cases per winery per person and address per year, sales tax, excise tax required. Rule excluding wineries with distributors was repealed. Age Verification Required. No Yes - (after 2 years licensee can request exemption Yes Permits required as 1/1/ 07 (increased from - 3 cases in 2007) per consumer Permit State as of 7/1/06, $50 initial permit fee annual renewal is $25, excise and sales tax required Transfer from Reciprocal to Permit State on June 1, 2008. A Bond is required. The Volume limit increases to 12 cases per consumer per year. Yes Yes 7.00% No Yes New Permit law 2007, Court's decision struck initial on-site sale requirement and rule prohibiting wineries with wholesale privileges in any state from have a permit. (Initial on-site visit requirement was reversed on appeal in 8/08) Yes na yes No Consumer Pays Use Tax for On-Site Sales Yes (Liquor Enforcement Tax) 8.00% NA No No No Yes ($5000) No yes, $750 Transitions to Reciprocity to Permit State on July 1, 2010. Unlimited shipments, taxes, bond, permit required. On-Site sales allowed 7/1/06 consumers will pay tax. No reporting requirements for on-site. 7/1/06 Off-site sales have capacity caps and require retailer delivery. Replaced with improved permit law on 7/1/09 - Off-Site Sales allowed with DTC Permit, Taxes Reporting, Age Verification Required 6.35% $200 label registration fee due every 3 years Yes Unlimited Yes na Yes na Determined by Address being shipped to If you have only 1 location in CA charge your county tax for all shipments within CA Permit State as of 7/1/06, excise tax required no sales tax 10/1/09 label registration fee increased from $100-$200, and permit fee increased $250- $315 Federal On-site vol. increases from 1-liter 5/09 -- consumer must pay excise taxes. volume limit increased from 1 quart to 1 case 7/08 Yes, No Volume Limit A reasonable quantity 2 cases per person per year Does the Legal Amount State Collect Excise Tax? na No No Does the State Collect Sales Tax? % Sales Tax Collected na No No Determined by address being shipped to (local taxes paid, separate registrations for non- program cities) No No Yes All wineries may ship on-site sales to consumers without a permit. Consumer must pay for the wine on-site. Law became effective 9/21/06 allows wineries producing 20,000 gallons annually or less to apply for a direct shipper's license. Litigation Ongoing Is Brand Registration Required? Is a Bond Required? Notes Federal On-Site Information current as of December 1, 2011 COMPLIANCE www.vwm-online.com The 2012 Vineyard & Winery Management Winedex® C-3