DIRECT TO CONSUMER VS. DISTRITBUTION
Transcript of DIRECT TO CONSUMER VS. DISTRITBUTION
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DIRECT TO CONSUMER
VS. DISTRITBUTION
2019 CONVENTION & TRADE SHOW | INTENTIONAL FROM GRAPE TO GLASS
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TSILLIAN CELLARS
ALEXANDRIA NICOLE CELLARS’
DESTINY RIDGE VINEYARD
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CASCADE CLIFFS
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TSILLIAN CELLARS
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STATE DTC SHIPPING REQUIREMENTS CA WINE INSTITUTE
• STATE WINE DTC PERMITS
• STATE DTC PERMITTING FEES
• SALES TAX
• EXCISE TAX
• LEGAL ISSUES
• SUMMARY
• SUPPORT
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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)
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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
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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
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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
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LEGAL ISSUES
• Some states are criminalizing non-compliant
shipping
• Some states are requiring FedEx and UPS to
report out-of-state wine shipments
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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
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SUPPORT
• Extra staff
• 3rd party fulfillment
• 3rd party compliance
THANKS