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Matthew Mann
 
April 2, 2016 | Compliance | Matthew Mann

Direct Shipping to Arizona Open to All Licensed Wineries Soon

Thanks to the efforts of the Wine Institute, Free the Grapes, and consumer wine advocates, Governor Doug Ducey of Arizona signed Senate Bill 1381 into law on March 30, 2016.  The new law takes effect on January 1, 2017 and revises the old, extremely limited direct shipping law restricted to wineries producing less than 20,000 gallons of wine annually.  The new law removes that restriction entirely, opening direct shipments of wine to any winery holding a federal basic permit issued by TTB and a current license to produce wine issued by Arizona or any other state. 

The law includes a couple of new wrinkles as well.  First, new shipment volume limits are in place.  A licensee annually may sell and ship nine-liter cases of wine that is produced by the licensee directly to a purchaser in this state pursuant to all of the following::

  • Until December 31, 2017, up to 6 nine‑liter cases of wine.
  • Beginning January 1, 2018 and until December 31, 2018, up to 9 nine‑liter cases of wine.
  • Beginning January 1, 2019 and for each year thereafter, up to 12 nine‑liter cases of wine.

The second new twist is age verification.  Before shipping the wine, the licensee shall verify the age of the purchaser who is placing the order by obtaining a copy of the purchaser's valid photo identification demonstrating the person is at least 21 years of age or by using an age verification service.

The requirements for reporting, and the payment of transaction privilege taxes and luxury taxes on wine sold to purchasers under the license remain the same.  The wine may be ordered by any means, including telephone, mail, fax or the internet, may be shipped to both residential or business addresses, but must be for personal use only and not for resale.

This is a tremendous step forward in expanding consumer choice and winery access to a growing and dynamic state wine market.

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