Compliance News
The New Jersey state Senate yesterday approved Bill S-766; which would allow both in and out of state wineries to ship direct to New Jersey consumers. The bill is based on the model direct shipping bill which would require wineries to obtain a direct to consumer license as well as a tax permit. Shippers would be required to pay sales and excise taxes, as well as report shipments on an annual basis. The bill now goes to the New Jersey House for approval.
Effective January 1, 2010, fees to obtain a unimerc code have risen from $30 to $35 per code. Unimerc codes are not specific to sizes and may apply for mulitple vintages. Currently the only states requiring unimerc codes for product registrations are Connecticut and Kansas.
For more information visit the Discus Unimerc website at http://www.discus.org/pdf/NIMERC_servicespriceupdates_0101_2010.pdf
THE Washington State Liquor Control Board (WSLCB) has requested legislation to prohibit pre-mixed, energy-enhanced malt beverages because "research suggests that alcohol-energy drinks create a dangerous mix - especially for youth," said Sharon Foster, board chair. These beverages are typically sold in cans in convenience stores statewide. House Bill 2804 will be up for consideration during the 2010 regular session.
After over five years of legal disputes, Calistoga was finally named an official American Viticulture Area by the Tax and Treasury Bureau on December 4th, 2009. Calistoga Cellars, one of the main detractors to the new AVA, was given three years to phase out the use of Calistoga in their brand name. Any wine that now references Calistoga must consist of at least 85% grapes grown in the Calistoga AVA.
The state of Virginia sent a letter to all direct shippers earlier this year notifying them that it is illegal to ship to Virginia residents from an address other than the address listed on the wineries direct shipper permit. This would mean that any winery using a fulfillment house or third party marketer would be shipping illegally to Virginia consumers. The state has indicated that statutory changes to the law would be the only way to allow wineries to use third party shippers. These changes are expected to be made during the legislative session beginning early in 2010 and closing at the end of March 2010.
You may contact the state at 503-872-5162 to obtain the bond forms if needed.
TTB published a final rule in the Federal Register establishing the 23,941-acre "Happy Canyon of Santa Barbara" American viticultural area in Santa Barbara County, California. This viticultural area lies within the larger Santa Ynez Valley viticultural area and the multicounty Central Coast viticultural area. This final rule becomes effective November 9, 2009.
The Direct Ship permit for Maine has finally been released and the applications are now available. The license is available to wine producers only (in California, holders of a Type 02 ABC license). There is a $200 application fee, as well as a $100 license fee. The renewal fee is $50, and expires one year after date of issuance. Wineries must provide the state with a list of products they will ship to consumers in Maine, however it is not necessary to send copies of labels or TTB label approvals. The state is also requiring licensees to obtain a Sales and Use Tax permit. This application can be filed online, via US Mail, or by fax.
Please note that Maine will not allow shipments of bottles or containers less than 750ml. Containers larger than 750ml may be shipped, but no more than 9L can be shipped at any one time. No more than 12 cases, or 108 liters, can be shipped to one address per year.
In an effort to increase state revenue, on September 25, 2009 the state of Connecticut announced mandatory fee increases for wholesale and direct to consumer licenses, renewals and product registrations. The fee affects all segments of the alcohol industry including wineries, importers, brewers and wholesalers of spirits.
Brand registration fees have now increased from $100 per label to $200 per label, winery permit fees have increased from $250 to $315, and beer and spirits wholesalers license fees have increased from $1000 to $1250.
The two year budget bill is to take effect through June 30, 2011.
For more information regarding the changes and fee increase, visit the Connecticut Department of Consumer Protection website at http://www.ct.gov/dcp/cwp/view.asp?a=1623&Q=288378&PM=1&dcpNav=|
As previoulsy reported from the state of Washington, product registration was no longer required in the state, and it was not necessary to send copies of labels or federal label approvals to the state for approval.
As of September 18, the state is still requiring copies of federal label approvals to be sent to them for each product to be sold in the state. The state will not issue approval codes or require price posting.
Effective September 1, 2009, Liquor taxes will increase in Illinois. The new rates are as follows:
- $0.231 per gallon for beer or cider with an alcohol content of 0.5 percent to 7 percent (up from .1875)
- $1.39 per gallon for alcoholic liquor other than beer with an alcohol content of 14 percent or less (up from 0.73)
- $1.39 per gallon for alcoholic liquor with an alcohol content of more than 14 percent and less than 20 percent (up from 0.73)
- $8.55 per gallon for alcoholic liquor with an alcohol content of 20 percent or more (up from $4.50)
Additional information can be found at: http://www.revenue.state.il.us/Publications/Bulletins/2010/FY-2010-04.pdf
The fee for a Maryland Non-Resident Dealer permit has been raised to $200 annually, up from the previous fee of $100. The permit still expires annually on October 31st, the renewal fee will also be $200.
Although July 1, 2009 is the first effective date for wineires to legally ship to TN. consumers, the application to recieve this permit has not yet been published by the state. As soon as the application becomes available Compli will post the news on our webstie at www.compli-beverage.com.
The state of Texas has adjusted their direct to consumer laws recently, allowing easier shipments of wine to Texas consumers. Beginning Sept. 1st, 2009 wineries with direct ship permits will be able to ship up 9 gallons of wine to a Texas consumer within one calendar month, as long as the total volume the winery ships to consumer does not exceed 36 gallons or 15 cases. Previously the regulations allowed wineries 3 gallons of wine to be shipped to a consumer within a 30 day period.
The state of Kansas has released its direct to consumer applications and processes. The forms can be found at http://www.ksrevenue.org/abcapplysos.htm. If you are existing Compli client and have requested a Kansas direct to consumer license we will begin the application process for you immediately.