Good News for Direct Wine Sellers to Indiana

Indiana SB 113, one of two bills this legislative session, has passed the Senate and is currently in the House for review. This legislation, should it pass the House and be signed into law, is good news for both Indiana wine consumers and direct wine sellers to Indiana. In-state and out-of-state wineries would have the ability to increase their consumer base in Indiana, positively impacting the local economy.

According to the Indiana General Assembly site, the details of Senate Bill 113 are:

Direct wine sales. Removes certain requirements for the issuance of a direct wine seller’s permit concerning filing of surety bonds or depositing cash in escrow. Removes requirements that before a direct wine seller may sell wine to a consumer: (1) the consumer must provide information in one face-to-face transaction at the seller’s place of business; or (2) under certain circumstances, the consumer must provide a verified statement that the consumer is at least 21 years of age, and the seller must provide the name and address of the consumer to the alcohol and tobacco commission. Allows a direct wine seller to sell and ship wine directly to a consumer if the consumer provides: (1) the consumer’s name; (2) a valid delivery address and telephone number; and (3) proof of age by a state government issued or federal government issued identification card showing the consumer to be at least 21 years of age. Amends the direct wine seller’s annual permit fee. Increases the total amount of wine a direct wine seller may direct ship in Indiana during a permit year from not more than 27,000 liters to not more than 45,000 liters. Removes provisions establishing residency requirements for liquor wholesalers. Removes the requirement that a partnership, in order to hold a liquor wholesaler permit, must consist of members who each satisfy the individual applicant requirements for a liquor wholesaler permit. Clarifies that the wine excise tax and the hard cider excise tax must be paid by the holder of a direct wine seller’s permit on applicable alcoholic beverages.

To summarize the bill digest above, this bill moves to update the current Indiana Direct Shipping laws in the following ways:

It removes the current requirement of the consumer making a face-to-face transaction at the direct wine seller’s place of business, as well as providing the consumer’s information to the Indiana ATC.

Instead of the requirements above, the bill proposes that the seller must get the consumer name, delivery address, phone number, and proof of age by a state or federal government-issued identification card that confirms that the consumer is 21 or over.

The bill also increases the amount of wine that can be shipped into Indiana each permit year. Currently, the amount is set 27,000 liters. Bill 113 increases that limit to 45,000 liters.

Additionally, the bill clarifies the existing excise tax requirements on direct-to-consumer sales.

According to the 2015 Direct Shipping Report, Indiana only accounted for .5% of the total volume shipped in the US and represented only .4% of national direct wine sales. With this bill, we will likely see an increase in Indiana’s direct wine consumption.

Want more details on the direct-to-consumer wine industry? Download the 2015 Direct Wine Shipping Report.

8 Comments

  1. chelsea perritt

    Jessamyn,
    Do you know if they will abolish the rule regarding a distributor?
    We would love to ship into Indiana, but we do have a distributor relationship and are not going to sever that. I think that could be why Indiana only had .7% of total volume shipped…

    Reply
    • Jessamyn Boltz - Head Liquor Librarian

      Hello Chelsea! The bill is still in session in the House, however as it stands now the current distributor relationship prohibited rule is still present.

      Reply
  2. Jaime

    Thank you for the post. What about the rule that prohibits wineries with distributors in IN from shipping direct to individual customers in the state? Thank you.

    Reply
    • Jessamyn Boltz - Head Liquor Librarian

      Hello Jaime! The bill is still in session in the House, however as it stands now the current distributor relationship prohibited rule is still present.

      Reply
  3. Kristin

    Have you heard any clarification on the ‘proof of age’ requirement?

    Reply
    • Jessamyn Boltz - Head Liquor Librarian

      Hello Kristin! The final bill version is laid on the table for the governor clarifies the proof of age requirement as: “…Proof of age by a state government issued or federal government issued identification card showing the consumer to be at least twenty-one (21) years of age. The proof under this clause may be evidenced:(i) in person;(ii) by a photocopy or facsimile copy that is mailed or electronically transmitted;(iii) by a computer scanned, electronically transmitted copy; or(iv) through an age verification service used by the direct wine seller.” We’ll also be sure to update anything that changes or is further outlined. Thanks!

      Reply
      • Kristin

        Does Ship Compliant provide an “age verification service”?

        Reply
        • Jessamyn Boltz - Head Liquor Librarian

          ShipCompliant gives you access to two different age verification services. Orders to states that require age verification are checked automatically when the order is placed in an integration order management system. Thanks for your question!

          Reply

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