DIRECT TO CONSUMER

VS. DISTRITBUTION

2019 CONVENTION & TRADE SHOW | INTENTIONAL FROM GRAPE TO GLASS

TSILLIAN CELLARS

ALEXANDRIA NICOLE CELLARS’

DESTINY RIDGE VINEYARD

CASCADE CLIFFS

TSILLIAN CELLARS

STATE DTC SHIPPING REQUIREMENTS CA WINE INSTITUTE

• STATE WINE DTC PERMITS

• STATE DTC PERMITTING FEES

• SALES TAX

• EXCISE TAX

• LEGAL ISSUES

• SUMMARY

• SUPPORT

STATE DTC WINE PERMITS

• 3 states and WA DC are open: AK, FL & MN

• 7 states closed: AL, AR, DE, KY, MS, RI & UT

• Remaining 40 states allow DTC shipping but

require permits

• Annual permitting renewal periods vary

• Application forms: some paper, some on-line,

some require label registration (TTB COLA’s)

STATE PREMITTING FEES • Fees range from $0 to $1500 depending on state and

winery size • Most fees are $50-300 annually • Most expensive: IL = $1500*, NJ = $938, SC = $600 • Least expensive: MO, NC = $0; CA = $10, ID, IA & OH =

$25; seven states = $50 • Some states have higher initial fee that drops with

renewal • Several states have fees based on winery size • Some states require surety bonds • Annual fees for all 40 states = $6100+ for small winery

SALES TAX

• Open states do not require sales tax

• 5 permitted states do not require tax: IA, MA,

MO, MT & OR

• 35 states require sales tax payment

• Tax ranges from 4-12%, most 5-8%

• Payment methods vary

• Most states require monthly payment, some

quarterly and a few annually

EXCISE TAX

• Open states do not require excise tax

• 4 states do not require excise tax: NH, OH, OR* & WY

• 36 states require excise tax payment

• Excise taxes range from $0.20 - $1.75/gallon

• Most states require monthly payment, some quarterly

and a few annually

• Payment methods vary

• Many states have different reporting periods for sales

and excise taxes

LEGAL ISSUES

• Some states are criminalizing non-compliant

shipping

• Some states are requiring FedEx and UPS to

report out-of-state wine shipments

SUMMARY • 43 states allow DTC shipping, 40 require

permits

• 35 states require sales tax payments

• 36 states require excise tax payments

• Separate reports usually required for the two

taxes

• Most states require monthly reports and

payments, some quarterly and a few annually

• Some states require surety bonds

SUPPORT

• Extra staff

• 3rd party fulfillment

• 3rd party compliance

THANKS