—National Association of Wine Retailers and New York Wine Merchants Support Bills—
(Albany, NY)—It is ninety years after Prohibition ended in New York, 19 years since New York consumers won the right to receive wine shipments from out-of-state wineries, and one year since New York consumers received the right to have cider, mead, and distilled spirits shipped to them from out-of-state producers, yet residents of the Empire State are still barred from receiving wine shipments from out-of-state wine stores and merchants. Legislation introduced into the Senate and Assembly this year would end this discriminatory, anti-consumer ban.
Supported by the National Association of Wine Retailers (NAWR) as well as some of New York’s most celebrated wine merchants, Senate Bill 1700 and Assembly Bill 556 would finally give New York wine lovers access to the hundreds of thousands of wines not currently available to them due to the ban on wine shipments from out-of-state wine retailers.
In support of the legislation, NAWR has released a comprehensive report covering the history of retailer wine shipping, its legal and regulatory issues, the benefits of retailer wine shipping to consumers and the state, as well as a tried and tested compliance structure for regulating retailer wine shipping.
Click to download: “Retailer Interstate Wine Shipping: A Primer”.
New York Already Knows How to Regulate Retailer Wine Shipments
“It’s remarkable and not a little embarrassing that we live in an age when New York consumers can buy and receive shipments of nearly every single product in America from retailers all over the country, including wine, spirits, and cider from in-state and out-of-state producers…But not from out-of-state wine merchants,” noted Tom Wark, executive director of NAWR. “If New York lawmakers can figure out how to regulate wine shipments from New York wine stores, New York wineries, and out-of-state wineries, I’m confident they can figure out how to remove the protectionist ban on consumers receiving wine shipments from out-of-state wine retailers and successfully regulate the shipment of these products.”
Importantly, the proposed legislation neither disrupts New York’s three-tier system of wine distribution nor harms local retailers, while bringing new tax revenues to the state. As the NAWR White Paper explains:
“The three-tier system dictates that a retailer in a state must purchase alcohol from a licensed in-state wholesaler. Wine Shipments from out-of-state retailers do not impose upon this system nor disrupt it… Consumers seeking a particular wine they can’t find locally, are unlikely to purchase another wine as a substitute. However, if interstate retailer shipping were an option, the consumer uses it, and the tax revenue accrues to the state where otherwise the state would not receive any tax revenue if the consumer is blocked from purchasing from an out-of-state retailer.”
Tried and True and Tested Regulatory Structure Included in Shipping Bills
Assembly Bill 556 and Senate Bill 1700 deliver a tried-and-tested set of regulations governing wine shipment from out-of-state wine merchants. The legislation would require out-of-state wine merchants to 1) pay for and obtain a permit from the New York State Liquor Authority, 2) remit sales tax to the state on all shipments, 3) agree to submit to New York regulatory and legal jurisdiction, 4) submit regular reports to the state on what was shipped to consumers, 5) obtain a signature from a person 21 years of age or older at the time of delivery. These requirements are the same as those New York imposes on shipments from out-of-state wine wineries.
“Because New York successfully regulates wine shipments from out-of-state wineries while collecting millions in tax revenue on those shipments, there is every reason to believe the state can do the same for shipments from out-of-state wine retailers and merchants,” added Wark. “All that is necessary is to abandon protectionist mindsets and adopt pro-consumer perspectives and that’s exactly what AB 556 and SB 1700 propose.”
Assemblywomen Amy Paulin and Carrie Woerner are sponsoring Assembly Bill 556, while Senator Shelley Mayer is the lead sponsor of Senate Bill 1700.
About the National Association of Wine Retailers
NAWR is a national trade association that protects and advances the interests of independent fine wine retailers across the country. NAWR advocates for a fair and well-regulated alcohol marketplace while working with and educating stakeholders, lawmakers, the media, and consumers to create a 21st-century marketplace for fine wine retailing. For more information see: https://www.nawr.org
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CONTACT:
Tom Wark, Executive Director
National Association of Wine Retailers
(707) 246-6451 • [email protected]