WTN Services congratulates the Family Wine Makers in their persuit of direct shipping. We encourage our winery members to read of the recent court opinion at
http://www.familywinemakers.org/userfiles/Mass%201st%20CA%20Opinion.pdf
Form MT-38 Annual Filing Status Application
Form MT-40 (Monthly filing)
-Annie Bones, State Relations - Wine Institute
Posted from our friends at Ship Compliant
The application states that direct shippers may only ship to wet areas within the state; a condition that may make the state slightly less available than initially anticipated. This requirement is different than those of other states such as Florida, New Hampshire and New York, where clearly defined dry areas are prohibited from shipping. Major cities such as Memphis, Nashville, Knoxville, and Chattanooga are all considered wet areas that are open for shipping.
Tennessee direct shipping license applications are available by directly contacting the Tennessee Alcoholic Beverage Commission at (615) 741-1602. The license requirements and application can also be viewed online. Wineries that prefer a full concierge service for obtaining their license can order online through easywinelicensing.com.
To obtain a direct shipping license, wineries must first register with the Tennessee Department of Revenue. Once this step is complete, wineries pursuing a direct shipping license must submit the following to the State of Tennessee ABC:
Tennessee direct shipping licenses expire December 31 of every year, and renewal applications must be postmarked by January 9 of the following year to avoid a $250 citation.
Licensed wineries can ship a maximum of one case per month and up to three cases annually to Tennessee residents. Retailers are still prohibited from direct shipping to Tennessee.
Posted from our friends at ShipCompliant
Georgians would be able to order up to 12 cases of wine directly from wineries each year over the Internet or phone under legislation that won final approval Monday in the Georgia Legislature. The measure now heads to Gov. Sonny Perdue, a Christian conservative who doesn’t drink, for his signature. Perdue has all but promised to veto other legislation allowing Sunday alcohol sales at package stores. But he has not stated an opinion on the Internet wine bill.
Supporters of the measure argue it will help Georgia’s winery industry, which is centered in North Georgia. The liquor industry has fought the idea of allowing direct sales from wineries in the past, but it did not object this time around.
Similar direct sales are allowed in 37 other states. The bill passed the Senate 40-6. It had earlier overwhelmingly won House approval. The Senate also gave final approval to a bill that would allow winery tasting rooms to sell beer and booze. The measure passed 35-6
Source: Atlanta Journal Constitution for full story…
http://www.ajc.com/metro/content/metro/stories/2008/03/31/booze_0401.html
Permits are NOW required —As of January 1, 2008 Oregon’s reciprocity law was replaced with a permit system for the sale and shipment of wine directly from wineries to consumers. The Permit law requires wineries to have a Direct Shipper Permit, pay an annual license fee of $50 and maintain a bond of at least $1000.
The license must be renewed annually and expires on 12/31 every year. Wineries with approved Direct Shipper Permits may ship up to two nine liter cases per month directly to an Oregon resident who is at least 21 years of age, must pay excise taxes and file monthly reports with the Privilege Tax Department. Wineries will be mailed monthly report forms within in 30 days of being issued a permit.
A limit of 2 cases per individual per month for combined on-site and off-site sales.
http://www.oregon.gov/OLCC/docs/privilege_tax/pt_statements/ds_statement.pdf
Data Sources: John Hinman, Wine Institute, Six88, Inertia Beverage ReThink-Compliance
“The Ohio Senate passed HB 119 which creates a permit system for wineries seeking to ship directly to consumers in Ohio. HB 119 will next be considered in a Conference Committee of both chambers of the legislature.
If passed as is by the Conference Committee and signed by Governor Tom Strickland, the bill will require wineries who ship into the state of Ohio to obtain an “S Permit” at the cost of $25.00. Wineries that qualify for the “S Permit” must produce less than 150,000 gallons/year, send copies of invoices of all shipments to the Department of Commerce Division of Liquor Control, and report all shipments of wine into Ohio and its destination annually. HB 119 also creates the “B-2a Permit” allowing wineries that produce less the 150,000 gallons/year to distribute directly to retailers.
An interesting aspect of HB 119 is the customer volume limit of 24 cases of wine per year. The language in this provision is similar to that contained in the Massachusetts legislation that is pending . This provision may burden wineries to track the shipment of wines by all “S Permit” holders. Furthermore, this limitation is applied to “Family Households,” a term which remains undefined by the Ohio Legislature.
Another important provision in the Ohio bill is the 150,000 gallon production limit. This limitation, while significantly larger than those applied in Massachusetts, seem to be of the same effects as those under current attack in the Family Winemakers of California v. Jenkins case. A ruling by the Massachusetts District Court in favor of Family Winemakers of California may give wineries some ground to challenge these limitations should they become law in Ohio.
Taxes: HB 119 establishes a tax scheme for wines shipped into Ohio. In essence, wines containing 4-14% alcohol by volume are subject to a tax of 30 cents/gallon; wines containing 14-21% alcohol are taxed at the rate of 98 cents/gallon; and sparkling wine will be taxed at the rate of $1.48/gallon.”
Stay tuned to the WTN Blog of course visit the Wine Institute or visit www.ShipCompliant.com for further updates…
HB 429 also gives small wineries - those producing less than 25,000 gallons per year - the privilege of shipping directly to Illinois retailers. This provision will increase access to Illinois for those wineries who fall within the production limit requirement larger wineries will be restricted under this legislation.
Further updates will be provides as they arise.
Compliance update below represents the most current information WTN Services™ has available as of the date of this document. This alert does not contain and is not delivered as legal advice but is for information purposes. WTN Services™ works closely with the Wine Institute, Free the Grapes, the Specialty Wine Retailers Association and legal experts for compliance updates…
The attached PDF document provides updates for…
wtn_services_compliance_update_april_26_20071.pdf
For more information or client support contact your WTN Services™ account manager or call 707.265.2933.
We are often asked for advise by wineries and wine retailers on who should they contact as an attorney who specializes in alcoholic beverage law. Find an individual and work with them so that they are keenly aware of your specific use permits and can advise you well as related to consumer direct shipping. Two highly regarded firms who we have experience with through our trade associations include…
Michael Newman
HOLLAND & KNIGHT- www.hklaw.com
50 California Street, Suite 2800
San Francisco, CA 94111
(415) 743-6989
John Hinman
Lynne Carmichael
HINMAN & CARMICHAEL, Attorneys www.beveragelaw.com
244 California Street, Suite 300
San Francisco, CA 94111
Phone: (415) 362-1215
FAX: (415) 362-1494
Presently in the Florida legislature there are three competing bills that could address wine direct shipping in the current session. Senate Bill 126 (Saunders) and Senate Bill 2282 (Geller) both include restrictive “capacity caps or maximums” that would prohibit any winery that produces more than 250,000 gallons per year from shipping directly to Florida residents.
House Bill 1217 (Bogdanoff) does not include any capacity caps and is based on the model direct shipping bill supported by the Wine Institute and a majority of the wine industry. Wineries and wine consumers are supporting HB 1217 while wine wholesalers are pushing the capacity caps and protections that would harm California wineries.
Every since February 2006, California and other state wineries have been able to ship to Florida under a determination by the Department of Business & Professional Regulation (DBPR) that helped bring Florida into compliance with Granholm. This was to be temporary until more permanent legislation was passed. However, the DBPR is hinting that if legislation is not passed by May 5th, they may act and may revoke the right to ship wine to Florida until legislation is finalized.
A link to the web pages of the Florida House of Representatives and the Florida Senate is
Stay tuned to our blog and the Wine Institute for further details….