Published on November 6, 2007
Slide1: WineAmerica State by State Guide to Shipping Michigan Direct Shipment Workshop Traverse City, MI March 3, 2006 Bill Nelson WineAmerica Basic Recommendations : Basic Recommendations Ensure that you provide an “affirmation of required age” mechanism in your direct sales (ex. website would have an “I am 21 Years of Age” checkbox with the WineAmerica Turnkey Underage Website Warning Statement). Please feel free to use WineAmerica’s Turnkey Underage Website Warning Statement on your website. Use an Age Verification System such as IDlive that can check against multiple databases to successfully verify the identity of the person making the purchase. The IDlive age verification system can be implemented as part of your website, used with over the phone transactions, and batch transactions. Slide3: Turnkey Statement: “WARNING! Minors providing false information when obtaining alcoholic beverages over the internet will face criminal prosecution and civil liability. Violators may be charged federally with wire and credit card fraud, and under multiple state laws prohibiting the attempted purchase or possession of alcohol by minors. Penalties include monetary fines, jail time, criminal probation, loss of driver's license and a criminal record that must be disclosed on job and college applications. Licensed sellers of alcohol (including wineries and retailers) who pay large fines and lose alcohol license privileges for sales to minors are entitled to sue the minor for compensation. All Internet customers must provide a credit card number and delivery address and can therefore be POSITIVELY identified to law enforcement. IF YOU'RE UNDER 21 -- DON'T RISK YOUR FUTURE!” AK: AK State Type: Open Limits: Reasonable Quantity Basic Information: Limited to certain Zip Codes Steps to Ship: See list of FedEx zip codes CA: CA State Type: Permit Limits: 2 cases per month Basic Information: $10 annually. Must pay excise taxes (20 cents per gallon) and out-of-state must pay Use Tax (7.25%); Both in and out-of-state winegrowers must also deposit a $500 excise tax security deposit (it will be refunded after 3 years if the shipper has a good record). Steps to Ship: Fill out form ABC-248 CO: CO State Type: Reciprocal Limits: 2 cases per month Basic Information: Permit ($50): First sale must be made on site Steps to Ship: See form for the required permit 18 liters maximum per month CT: CT State Type: Permit. Limits: 5 gallons every 60 days Basic Information: $250 per year for small (produce less than 100K gallons per year) wineries or $1,000 for large. Listing of brands. Brand registriation is $100 per label. License allows sales to wholesalers as well. Out-of-state corp. filing. $275 plus $300 per year. CT (continued): CT (continued) Steps to Ship: Submit shipper's form. If small winery must also enclose notarized statement that did not produce over 100,000 gallons in most recent calendar year. Must also file as an out-of-state corporation doing business in CT and file for sales and excise tax payments Register brands. Do not have to reregister brands when change vintage. Small winery shipper's license also allows direct sales to retailers. File out of state certificate of authority if corporate. $ 275 filing fees plus $300 per year. Also must file & pay fee and do excise and sales tax. Won't have forms and process until September 2005 DC: DC State Type: Limited Limits: 1 quart per month limit Basic Information: On or off site Steps to Ship: No paperwork required FL: FL State Type: Open Limits: None Basic Information: No paperwork necessary, but must file reports and pay use (6%, quarterly report) and excise ($2.25/gallon, monthly report) taxes. GA: GA State Type: Permit Limits: 5 cases per year. 50 case overall maximum per year. Must not have a distributor. Basic Information: $50 per year. (no distributor) 5 cases per customer. On site sales may be shipped without permit (5 cases max. no taxes due). Listing of brands. GA (continued): GA (continued) Steps to Ship: See form for the required permit. See form to provide a listing of brands. Pay excise taxes monthly. $1.51/gal. Alc. below 14%. $2.53/gal Alc.14-21%. Pay 4% sales taxes yearly. HI: HI State Type: Reciprocal Limits: 3 cases per year Basic Information: Registration File invoices with each county Commission (4 counties) Steps to Ship: File 4 registrations Send invoice within 7 days to each county. IA: IA State Type: Reciprocal Limits: 2 cases per month Steps to Ship: No paperwork required ID: ID State Type: Reciprocal Limits: 2 cases per month Steps to Ship: No paperwork required IL: IL State Type: Reciprocal Limits: 2 cases per year Steps to Ship: No paperwork required LA: LA State Type: Permit Limits: 4 cases per year. Must not have a distributor. Basic Information: $150 per year. (no distributor) LA (continued): LA (continued) Steps to Ship: Each package must have invoice an enclosed Pay excise and sales taxes monthly with certified check. See forms for sales and excise taxes. Attach the invoices to excise tax form. Form for taxes will be sent to winery monthly after registration. 4% sales tax. Excise tax: Still wines under 14% - $.03 per liter. Over 14% $0.06 per liter. Sparkling $0.42 per liter MI: MI State Type: Permit Limits: 1,500 9 Liter cases or 13,500 Liters to consumers annually Basic Information: $100 per year; Michigan Liquor Control Commission has not yet created rules and forms to allow wineries to sign up for a license. MLCC is putting names on a list and will send out paper work when available. Forms should be online by March 2006. MN: MN State Type: Open Limits: 2 cases per year Steps to Ship: No paperwork required MO: MO State Type: Reciprocal Limits: 2 cases per year Steps to Ship: No paperwork required NC: NC State Type: Permit Limits: 2 cases per month Basic Information: No application fee. Listing of Brands. Must appoint a distributor if exceed 1,000 cases in a year. Do not have to use the distributor. NC (continued): NC (continued) Steps to Ship: Fill out the "Application for Wine Shipment Permit" Fill out and maintain brand listing File taxes forms quarterly. Out-of state wineries only pay excise taxes (consumer pays sales tax directly to the state - Sales tax is 7%). Excise tax is 21 cents/liter for unfortified wine and 24 cents/liter for fortified wine. To get reporting forms, call the NC Department of Revenue at 919-733-0212. ND: ND State Type: Permit or Reciprocal (only if state allows shipping in without taxes) Limits: If Permit (1 case per month) or if Reciprocal 27 liters per month (3 cases) Basic Information: $50 per year. Brand registration required or Reciprocal (only if state allows shipping in without taxes) ND (continued): ND (continued) Steps to Ship: File Permit Application (Tax Type 96) Pay excise and sales taxes (7%) annually. Report forms sent with permit. Fill out voluntary sales/use tax compliance registration form. NE: NE State Type: Permit Limits: 1 case per month Basic Information: $500 per year Steps to Ship: Fill out form 35-4016 Shippers permit Pay taxes annually. Sales tax varies by jurisdiction. File Form 10 and Schedule 1. NH: NH State Type: Permit Limits: 60 bottles per year (1liter max) Basic Information: Free Steps to Ship: File free permit application File tax reports monthly even if no activity. 8% tax. NM: NM State Type: Reciprocal Limits: 2 cases per month NV: NV State Type: Permit Limits: 12 cases per year Basic Information: Free for 1st 200 cases per year, then $500 per yr. Must designate wholesaler if ship more the 25 cases per year. NV (continued): NV (continued) Steps to Ship: Fill out Certificate of Compliance and submit with $50 fee. File excise tax reports monthly even if no activity. Obtain a voluntary certificate of authority for sales tax reporting. No fee. Pay sales taxes annually NY: NY State Type: Permit Limits: 36 cases per year Basic Information: $125 per year. Only from states “substantially similar.” (As of 2/06 this list includes CA, NC, OR, TX, VA); Must pay excise (18.93 cents per gallon) and sales taxes - when you apply for quarterly filing forms the NY SLA sends a listing of sales tax rates for each county (ask your customers which county they reside in so you can check the sales tax rate against the list provided by the SLA). NY (continued): NY (continued) Steps to Ship: File for NY State Certificate of Authority DTF-17. No charge. Sales Tax Vendor. File sales tax reports, annually, quarterly or monthly depending on tax owed. Forms ST 101, ST 100 or ST 810 respectively. File TP-215- Registration as a Distributor of Alcoholic Beverages. Also requires a current financial statement. Pay taxes monthly. Form MT-40. Wine is reported in gallons. Column F. New York City tax does not apply. File papers for Out-of-State Direct Shippers License. $125 per year. File annually manufacturer's report of all wines shipped for personal use. OH: OH State Type: Open. No limits. Consumers must file Excise and Use Tax Filing with taxes within 30 days of receiving wine. Limits: Basic Information: No fee Steps to Ship: Send consumers a copy of form with each order. OR: OR State Type: Reciprocal Limits: 2 cases per month Basic Information: Shipper license (free). PA: PA State Type: Open Basic Information: State is evaluating its options in light of a court decision rendering their prohibition of interstate shipping unconstitutional RI: RI State Type: Limited Limits: Basic Information: Limited direct shipment. In person sales only. SC: SC State Type: Permit Limits: 2 cases per month Basic Information: $600 for 2 years. One time retail license $50. SC (continued): SC (continued) Steps to Ship: File ABL-571 $600 File form SCTC-111 Retail registration. One time only. $50 Pay taxes on ST-3 form and ST-389 once per year. SC allows filing and payment by Internet. Www.sctax.org. TX: TX State Type: Permit Limits: 3 gallons every 30 days Basic Information: $75 per year. TX (continued): TX (continued) Steps to Ship: File application for Out-of-State Winery Direct Shipper's Permit (also on web). File for TX Sales Tax Permit Pay excise taxes monthly. By 15th of next month. TX will send forms. Pay TX sales taxes as appropriate. Usually annually. Forms 114 and 116. VA: VA State Type: Permit Limits: 2 cases per month Basic Information: $65 per year. Listing of brands. Brand authority. Notify VA wholesalers that application is filed. Submit copies of TTB COLAs VA (continued): VA (continued) Steps to Ship: Submit license application, with copies of license, list of brands and notification to wholesalers of intent to ship. Obtain a VA states sales tax number. For R-1. Also can do on line from www.tax.virginia.gov under Business forms. Sales tax form must be filed quarterly if under $300 per quarter. Report monthly with list of shipments and payment of excise taxes. See direct shipper's report. WA: WA State Type: Reciprocal Limits: 2 cases per year Basic Information: Shipper license (free). Will not recognize New York shipping law as reciprocal. Does not recognize permit states. Steps to Ship: Submit application for Private Wine Shipper's License WI: WI State Type: Reciprocal Limits: 1 case per year Basic Information: Shippers permit. Annual report. Steps to Ship: File for Reciprocal Wine Shipments Permit. No charge. File report annually listing all shipments. WV: WV State Type: Reciprocal Limits: 2 cases per month Basic Information: UPS will not ship to West Virginia WY: WY State Type: Permit Limits: 2 cases per year. No limit on shipments to retailers. Basic Information: $50 per year. May also ship to retailers. Any wine not listed with WY may be shipped to a retailer. WY (continued): WY (continued) Steps to Ship: File for Out-of-State Shipper License. Report and pay 12% monthly. No report necessary when no shipments.