AUGUST NEWS
Updates in Direct
Shipping Legislation
Montana will reopen for DtC shipments Oct. 1
N
Winery fees for direct-to-consumer shipping in Montana will range from free to
$400. Arkansas requires that wineries
purchase a $25 permit and pay state sales
and excise taxes. Nebraska's $500 permit
for wineries is the highest in the country.
apa, Calif.—At Direct 2013, ShipCompliant's eighth annual conference held June 13, Steve Gross,
director of state relations for the
Wine Institute, offered an update about
opening more states to wine shipments.
Montana is "reopening" to direct-toconsumer (DtC) shipments after earlier
plans didn't work out. Previously it was the
only state licensing consumers, and that has
ended. Now, starting Oct. 1, "registered"
wineries must get a $50 endorsement if they
are already in the state's three-tier system.
If not, registration is free for up to 60 cases
per year, with a charge of $400 for more
than 2,000 cases. Each customer can only
receive 18 cases per year.
Arkansas' new regulations include onerous provisions that may discourage direct
shipment. As of Aug. 16 (but realistically
not until late in the third quarter of 2013),
wineries will be able to ship with a $25 permit and payment of excise and state sales
tax (but not local taxes). However, customers can only ship wines they order in person
at the winery (not through clubs), can only
get one case per calendar quarter, have to
affix a sticker they buy from the ABC for up
to $10 and can only take delivery at home.
Nebraska has actually made things
worse: Wineries must now report sales
and pay taxes monthly instead of annually,
and wineries must notify their wholesalers
when obtaining a DTC permit. The state
also has a $500 permit charge, the highest
in the nation, and that money goes to promote the state's tiny wine industry.
—Paul Franson
Win es & Vines AU GU ST 20 13 17
