Florida Bill Would Ban Mail-Order Sales by Big Wineries

Posted on by Chief Marketer Staff

A bill passed unanimously last week by the Florida House of Representatives would bar the largest out-of-state wine producers from marketing their products to Florida customers over the Internet or through the mails.

According to the House bill, producers that turn out more than 250,000 gallons of wine a year would not be allowed a license to sell directly to residents of the state. Rep. Ellyn Bogdanoff, R-Ft. Lauderdale, said the cap on the size of out-of-state sellers was a necessary compromise in legislation designed to set up a mechanism for charging tax on direct sales of wine coming across Florida’s borders.

Last year, the U.S. Supreme Court struck down laws in Michigan and New York that prevented wineries from shipping their products directly to consumers across state lines. Since then, several states have put procedures in place to make sure taxes are collected on such sales and to keep wine out of the hands of underage drinkers.

Florida wine retailers, distributors and makers all took part in drafting the compromise legislation. On Tuesday, Florida state representatives defeated an amendment that would have removed the size cap and allowed online and mail-order sales by large wineries from out of state as well as small ones.

But a similar wine-tax bill up for consideration by the Florida Senate doesn’t contain the same size cap, and its sponsor, Sen. Paula Dockery, R-Lakeland, has specified that she would rather not have a wine bill at all than to pass one that limits constituents’ ability to purchase directly the wines they choose.

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