Weekly Digest | Continued CO Changes, TTB Investigations, Label Requirements, Cannabis Regulations
November 1, 2018
By Melani Meister, Sales Manager
In this week’s digest, we dive into the continued confusion over Colorado’s emergency rule changes, permit suspensions to California wholesalers, the importance of filing license modifications, and new labeling requirements for Monterey County.
There’s still a lot of confusion around the Colorado Department of Revenue’s (DOR) recent emergency rule changes to sales tax requirements. The DOR would like out-of-state sellers to register for sales tax prior to December 1st. After a cancellation, there is a hearing to discuss the new rules on November 30th, just one day before the new rules come into effect. We talked to the DOR to get some clarifications on the grace period.
On October 26th, a third wholesaler in California to serve a stipulated suspension of a Federal Alcohol Administration Act basic permit since March. That followed a second suspension just a few days earlier, on October 19th. Both one-day suspensions were developed out of a joint operation that TTB conducted with the California Department of Alcoholic Beverage Control. The issues were related to consignment sales arrangements.
With recent enforcement by TTB, it’s a good reminder of how important it is to stay up to date on filing modifications that may affect your federal license as an importer, producer, or wholesaler of alcoholic beverages. You have an ongoing responsibility to report changes of name, address, ownership, management or control of your business. Overlooking personnel changes, like a new officer being appointed or a change in shareholder percentages, can be risky.
Anyone planning on bottling wine with Monterey County AVA on the label will need to pay attention to the new conjunctive labeling requirements. Starting on January 1st, 2019, the state legislature requires wine labeled with the name of an AVA within Monterey Country to also include a Monterey County designation, including Arroyo Seco, Carmel Valley, and Santa Lucia Highlands AVAs.
Nine states have legalized cannabis since 2012. With the industry growing, the Distilled Spirit Council (DISCUS) has been encouraging lawmakers and regulators to adopt structures for cannabis similar to those in place for spirits. They suggest that the tax rates, safety regulations, and retail sales regulations need to be comparable to the ones put on alcohol products.