Direct Wine Shipping Benefits
- Increases Tax Revenue & Fee Income
for the State of Maryland
State of Virginia
passed direct ship legislation in 2003 and collected $370,284 in FY2008
from excise tax ($316,074) and permit fee income ($54,210) from
out-of-state shippers. The State
of New Hampshire
collected $504,140 in FY2008 permit fees, despite having no excise tax. In general, states that have enacted
direct wine shipment approximate that direct ship sales account for 1% of
their total wine consumption. Using this calculation and accounting
for Maryland’s excise and sales tax and
permit fee collection, we estimate that HB716 will bring in $1.5 million
in revenue to the state of Maryland;
the Comptroller last year estimated it would cost $21,900 to collect that
- Supports Maryland Retailers
licenses in some other states (Virginia,
increase post-direct ship enactment thereby creating more local
jobs. At a minimum, the number of
retail licenses generally stays the same (Nebraska,
retail licensees unable to acquire more than one license in the state,
preventing any franchise opportunity, the Direct Shipper’s License would
enable retailers to open virtual stores to increase sales and customer
opportunity to Maryland’s
boutique gift basket stores to include a bottle of wine in their baskets,
increasing sales and customer base.
increased wine consumption, the majority of additional wine sold in the
state is sold through wholesalers and retailers. In Virginia, 90% of the FY2007-FY2008
additional wine consumption is sold through wholesalers, most of which
gets sold through retailers.
consumption in Virginia
increased 7.2% from FY2006-FY2007 and 2.2% from FY2007-2008
- Supports Maryland Wineries
visitors to Maryland
wineries are Marylanders, and most wineries have limited
distribution. Some wineries have
upwards of 90+% of their mailing lists composed of Maryland residents,
and passage of HB716 would allow these consumers to order wine directly from
wineries they visit on site or at wine festivals and other wine tasting
make Maryland compliant with reciprocity
states like New York that have banned Maryland wineries from shipping to their residents
residents cannot receive direct shipments from their State wineries.
- Improves Consumer Choice in Maryland
- Maryland consumers would be able to order wine from
wineries they visited or read about to be delivered directly to their
home in the event that the wine is not available in Maryland stores. Most of these wines
are from small wineries that cannot afford the expense of working with a
conventional distributor. Maryland
wholesalers currently carry only about 15% of all American wineries’
- Improves Consumer Choice for Traveling
Marylanders and Gift Giving
HB716, Marylanders would be able to ship home wine they purchase in other
states. They would also be able to
give and receive gifts including wine to and from out-of-state friends in
the other 37 states that allow direct shipment.
- Enables Maryland Consumers to Join Wine Clubs
consumers that want to join wine-of-the-month clubs, HB716 would allow an
individual person to receive up to 24 cases a year to be shipped to their
residence, enabling Maryland
wine connoisseurs to participate in wine-of-the-month clubs and
experience wines currently unavailable in the State.
- Complements Rather Than Competes with
Three Tier System
shipment helps to increase total wine consumption in other states (Virginia, Nebraska),
most of which flows through wholesalers and retailers.
purchased directly add to additional consumption in the state, not
reducing demand from local retailers.
majority of other US
states have implemented an efficient tax collection system that the Maryland’s
Comptroller can also put in place.
Wineries with Permits
Wineries Able to Ship to MD
Here is a link to the Comptroller's website. Search for "DW-Direct Wine Shippers Permit" under permit type.
Search for wineries