Listing category: "Illinois"

Third-Party Provider Reports for Illinois Due

The Illinois Liquor Control Commission has issued details regarding a new report required to be filed by third-party providers facilitating direct to consumer (DtC) shipments into Illinois. Third-party providers are any parties, expect for common carriers, who have been authorized to ship wine on behalf of a licensed direct shipper winery. Under a set of […]

Illinois Third-Party Provider Rule Signed Into Law

On Friday August 26, Illinois Governor Bruce Rauner signed SB 2989 into law. As we discussed in detail in a previous blog post, this new bill adds a number of new regulations concerning direct to consumer (DtC) wine sales made into Illinois. To summarize, SB 2989 will require wineries to register with the Illinois Liquor […]

Illinois DtC Bill Could Add Rules on Using TPPs

On May 31st, the Illinois Senate voted in favor of SB 2989, sending the bill onto Governor Bruce Rauner for his signature. If approved, SB 2989 will amend Illinois’s existing direct-to-consumer (DtC) shipping laws, adding several new compliance rules for wineries using third-party fulfillment centers.

Illinois Qui Tam Webinar: The Big Takeaway

Recently we at ShipCompliant hosted a webinar to review the latest updates in the ongoing saga of the Illinois qui tam cases. We were excited to be joined by Steve Gross of the Wine Institute, along with Adam Beckerink and Michael Wynne of Reed Smith LLP, who are representing the Wine Institute in its suit […]

Illinois Update | Attorney General Announces New Relief in Shipping Tax Cases, but Wineries Must Act Fast

Wineries facing a lawsuit for failing to collect shipping taxes may have another means of relief according to a recent announcement by the Illinois Attorney General (AG). As first reported by attorney David Ruskin, the AG has indicated that she will conduct further reviews of pending False Claim cases based on new rules proposed by […]

Illinois Update: Wine Institute Files Suit, Attorney General Creates Settlement Formula

You can read an update on the Illinois situation here. There were several big developments these past two weeks in the ongoing saga around tax on shipping charges in Illinois. We’ve been keeping a running list of resources and articles related to this issue at the bottom of our blog post, Are Shipping Charges Taxable in Illinois. […]

Repost | Are Shipping Charges Taxable in Illinois?

For an update on the Illinois situation, see this post.  This post was originally posted in December of 2014. We are republishing this because we feel it is still relevant to our clients and readers. Folks in Illinois are quite litigious when it comes to occupation and use (aka sales) taxes on transportation or delivery (aka “shipping”) […]

Qui Tam Troubles Continue in Illinois

A new round of Qui Tam lawsuits regarding tax on shipping charges in Illinois has been filed against numerous wineries and wine retailers. For more information on tax on shipping in Illinois, please see our December blog post, which we’ve updated periodically with additional links and information in the “Resources” section, including a posting from […]

Illinois sends over 100 cease and desist letters

The Illinois Liquor Control Commission (ILCC) announced at their board meeting last week that they had sent over 100 cease and desist letters to retailers, wineries, and fulfillment houses. The letters state that the ILCC “has evidence that your business is transferring alcoholic liquor into Illinois from a point outside of Illinois without a license.” […]

Product Registrations Online: Out with the Old, In with the New

In the increasingly fast pace of wine, malt and spirit law and compliance, more and more states are recognizing the importance of doing more with less, optimizing processes, and going green. Over the last two years alone, seven states have begun using PRO (Product Registration Online) to accept online label registrations from licensees. For labels […]

Is the Marketplace Fairness Act Fair for Wineries?

In short, yes, for a couple of reasons: 1. Wineries already pay sales tax in most states 2. The vast majority of wineries will likely be exempt from the law So what is it, exactly? Senate Bill S. 743, more commonly known as the “Marketplace Fairness Act“, is a pretty simple bill that would give […]

Possible Effects of Recent Congressional Hearing on Direct Shipping

You may have seen reports about a recent U.S. Congressional subcommittee hearing on “Legal Issues Concerning State Alcohol Regulation.” The hearing was important for anyone concerned about direct-to-consumer wine shipping since a primary question was whether federal courts should be stripped of their authority to strike down state alcohol laws that discriminate against out-of-state businesses—the […]

Hidden Costs of Direct Shipping Licensing

Before jumping into a direct shipping program in a new state, wineries should consider their current prospect list, market potential, shipping difficulty and costs. When it comes to calculating start-up costs to enter a new state, there is often more than meets the eye. In addition to license fees, wineries may need to budget for […]

Excise Taxes Rise in Two Direct Shipping States

On September 1, 2009, excise tax rates for wine will increase in Illinois and North Carolina. Governor Pat Quinn approved Illinois House Bill 255 on July 13, 2009. The bill increases Illinois’ excise tax on wines from $0.73 to $1.39 per gallon of wine under 20% ABV. An updated tax form for Direct Wine Shippers […]

Illinois Offers a Bit of Green for Direct Wine Shippers

For those of you that have started shipping to Illinois under their new permit system, your first round of reporting will come due this month. Fortunately, Illinois makes it easy to report your shipments and pay taxes. Electronic filing and payment is available for the Liquor Direct Wine Shipper Return (RL-26-W), and the Sales and […]

10 Days Left Until Illinois Permit Deadline

Just a friendly reminder that beginning June 1st, 2008, Illinois will require a permit for all direct-to-consumer wine shipments to the state. A winery must receive the permit before it may begin/resume shipment to the state. In 10 days, under the newly-promulgated wine shipping law, wineries and retailers that have been shipping to Illinois under […]

Checklist and detailed instructions for Illinois permit applicants

Beginning June 1, 2008 wineries will be required to have an “Out-of-State Winery Shipper’s License,” file reports, obtain a bond and pay sales and excise tax in order to ship wine to consumers in Illinois. Wineries with a valid Shipper’s License issued by the Illinois Liquor Control Commission will be permitted to ship up to […]

Illinois Direct-to-Consumer Permit Applications Available

The Illinois Direct-to-Consumer Permit applications are now available on the Wine Institute and Illinois Liquor Control Commission’s websites. Beginning June 1, 2008 wineries will be required to have an “Out-of-State Winery Shipper’s License,” file reports, obtain a bond and pay sales and excise tax in order to ship wine to consumers in Illinois. Wineries with […]

Is the retail to consumer shipping battle headed to the Supreme Court?

The issue of direct shipments by retailers to consumers has become a very hot topic of late. As of today, retailers can ship to less than half of the number of states to which producing wineries can ship. The Specialty Wine Retailers Association is fighting hard with both legislative efforts and litigation to open more […]

Free the Grapes!: New Illinois Law to Expand Consumer Choice for Winery-to-Consumer Shipments from 5 to 50 States, But Corks Out-of-State Retailers

From Free the Grapes!: Illinois Governor Rod Blagojevich yesterday signed House Bill 429 which goes into effect June 1, 2008. The new law dramatically expands consumer choice for winery-to-consumer purchases made by Illinois wine consumers. Under the new law, wineries in all 50 states may purchase a permit to ship. Under the old law, wineries […]

Illinois wine shipping bill signed by governor

Governor Blagojevich signed HB 429 yesterday, temporarily ending an extremely tough battle to pass wine shipping legislation in Illinois. The new laws will not take effect until June 1st, 2008. Illinois will move from a reciprocal state to a permit state for winery direct shipping and will also enable limited self distribution for wineries that […]

Discrimination Against Out-Of-State Retailers After Granholm

Imminent revision of Illinois direct shipment law is producing much heated comment about retailer shipping rights, some trenchant and some off the mark, but all of significance beyond one state. Illinois House Bill 429, sent to the governor for signature on August 8th, conforms to the all but universally held belief that Granholm condemns treating […]

Free the Grapes! Legislation and Litigation Update

From Jeremy Benson at Free the Grapes! : Free the Grapes! Media Update August 2007 Now that we’re at the end of most state legislative sessions, we thought it timely to provide an update on direct-to-consumer (DTC) wine direct shipping as of month-end July 2007. Here are some highlights, followed by a more detailed description. […]

Wine shipping bill in Illinois moves to Governor's desk

The long battle in Illinois is coming to an end (well, at least for now). The Illinois Senate passed HB 429 today by a vote of 49-5. Governor Blagojevich is expected to sign the bill. More details of the legislation can be found in a previous post. If signed, Illinois would move from a reciprocal […]

Illinois Direct to Consumer Wine Shipping Bill One Step Closer

The Illinois House of Representatives passed Illinois HB 429, which allows direct to consumer shipping by out-of-state wineries, by a vote of 92-6 yesterday. If passed by the Senate and signed by Governor Rod Blagojevich, the bill will afford individual Illinois residents the opportunity to receive up to 12 cases of wine per year from […]

Deadline extended for Illinois House bill

Illinois House Bill 429, which would move Illinois from a reciprocal state to a limited direct state for winery direct shipping, did not see a vote by the May 10th deadline, but the deadline for third reading and final action was extended until May 18th. The bill would create a permit system, establish a 12 […]

Free The Grapes! legislative update

Free the Grapes! recently provided an update on direct to consumer shipping legislation and litigation for 2007. As you can see below, many changes are likely to come this year. LEGISLATIVE UPDATE Wine Institute provided the following summary of direct shipping legislation around the country. Alaska –House Bill 34 (Ledoux) would specifically allow in-state wineries […]

Direct shipping bill passes West Virginia Congress

In May of 2005, in the case of Granholm v. Heald, the United States Supreme Court effectively invalidated the practice of reciprocity because it discriminates against wineries in non-reciprocal states. At that time, there were 13 reciprocity states. Today, there are only seven reciprocity states left (Oregon, New Mexico, Iowa, Missouri, Wisconsin, Illinois, and West […]

The broader effects of Costco

I. Discrimination against Direct Distribution from Outside the State There seems little doubt that Costco�s reading of Granholm will survive appeal. Nothing appeared in the Costco record to distinguish direct shipment of beer and wine to retailers from direct shipment of wine to consumers. Most states with wine industries allow local wineries some form of […]

Compromise in Illinois passes Senate vote, moves to House

Winery and beer distributor groups reached a compromise in the drawn out battle in Illinois. Senate Bill 2180 passed the Senate vote unanimously,and now moves to a House vote. The compromise would allow the nearly 200 Illinois wineries to sell wine at the winery as well as at two additional retail locations in the state. […]

Illinois wineries fight back

With the help of the press, wineries in Illiinois turn the tables on the powerful Associated Beer Distributors of Illinois.

Proposed legislation in Illinois would limit off-site sales

Following up on our previous post, small wineries are once again crying foul in Illinois over legislation introduced by the Illinois distributor lobby. The bill would require an initial on-site purchase before off-site sales can be made and would establish a customer aggregate volume limit of two cases per year. Illinois wineries are taking issue […]

Let the wine flow in Illinois

Editorial from the Chicago Tribune: If lawmakers are going to get back in the wine game, they should promote competition and protect consumers from unnecessary middlemen and their markups. Otherwise, stay out.

Wine shipping fight begins in Illinois

Sound familiar? The Associated Beer Distributors of Illinois are pushing for a bill in Illinois that would prohibit direct shipments. Illinois wineries are crying foul and pushing their own counter-legislation. This will be interesting to watch as Chicago is a large wine market.