Kansas to allow direct shipment of on-site orders

Kansas Governor Kathleen Sebelius signed Senate Bill No. 297 last week, making it legal for in-state and out-of-state wineries to ship wine directly to Kansas consumers provided that “the consumer must purchase the wine while physically present on the premises of the wine manufacturer”. The new laws go into effect on July 1st. The legislation is a small step in the right direction as Kansas was previously a prohibited state for shipping wine. Kansas consumers will be responsible for paying all applicable taxes.

SB 297 also establishes new, but complex rules for off-site purchases. Wineries that produce less than 100,000 gallons can apply for a $50 permit that allows for off-site orders to be placed by Kansas consumers if the wine is first shipped directly to a licensed retailer.

Wine sold and shipped by a person holding a shipping permit shall be delivered to the licensed premises of the licensed retailer designated by the purchaser during hours the retailer is authorized by law to sell alcoholic liquor. The retailer shall collect taxes with regard to such wine pursuant to K.S.A. 79-4101 et seq., and amendments thereto, in accordance with rules and regulations of the secretary, as if the sale were made in this state. The retailer may charge the purchaser a handling fee of not more than $5 for each delivery of wine received by the retailer on behalf of the purchaser. The retailer shall ensure that the purchaser of the wine is 21 or more years of age.

Wineries that produce more than 100,000 gallons must ship off-site orders via the three-tier system.

the wine shall be shipped in the original unopened container to a licensed distributor, who shall deliver the wine to the licensed premises of the retailer designated by the consumer;

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