HB1288: Wine producer, small; creates new distribution license.

Chief Patron

Del. Chris Saxman (R-20)

Status

Bill is Dead

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Summary

Alcoholic beverage control; small wine producer distribution license.  Creates a new small producer distribution license that authorizes the licensee to sell and deliver or ship by common carrier the wine produced by the licensee, in accordance with Board regulations, in closed containers, to (i) persons licensed to sell the wine at retail for the purpose of resale, § 4.1-326 notwithstanding, (ii) the Board, and (iii) persons in Virginia to whom alcoholic beverages may be lawfully sold. The bill also provides that shipments of such wine by common carrier to a retail licensee shall be (a) made in containers marked “Contains Alcohol,” (b) paid by the retail licensee in advance of the shipment, and (c) accompanied by an invoice in a form prescribed by the Board and that is available for examination by the common carrier. All deliveries of such wine by the licensee to persons in Virginia to whom alcoholic beverages may be lawfully sold shall be performed by the owner, or any agent, director, shareholder or employee of the licensee. The bill provides that, for purposes of § 4.1-234 and Chapter 6 (§ 58.1-600 et seq.) of Title 58.1, each delivery or shipment of wine by such licensee to a consumer or a retail licensee shall constitute a sale in Virginia. Licensees are required to collect the taxes due to the Commonwealth and remit any excise taxes monthly to the Board and any sales tax to the Department of Taxation. The bill defines "small wine producer" as any winery located outside the Commonwealth and licensed as such in the state where the winery is located and that is eligible for the federal tax credit pursuant to 27 CFR 24.278. The bill also grants these same privileges to certain winery and farm winery licensees. The bill sets the state license tax for this new license and requires the ABC Board to adopt emergency regulations to implement the provisions of the bill.   View Full Text »