Tennessee Bill to Permit Wine DM on Hold Till March

Posted on by Chief Marketer Staff

A bill that would allow Tennessee residents to buy wine online or through the mail and raise nearly $10 million in tax revenue by next year has been put on hold until March 5.

The bill, SB2686/HB2824, sponsored by Rep. David Shepard (D-Dickson), seeks to authorize out-of-state wine distributors, wholesalers, importers and others to ship wine directly to state residents 21 or older for their own use.

In addition, the proposal calls for those companies to pay a $500 application fee, provide proof of their current alcoholic beverage license and ship no more than two nine-liter cases.

This law would not apply in those counties and municipalities that ban alcohol by local option.

The issue of direct shipment of wine, which is generally opposed by wine retailers, has been around for a long time.

About three years ago, the U.S. Supreme Court helped pave the way for direct sales of wine when it found bans against direct sales by wineries to consumers in Michigan and New York unconstitutional (Direct, June 1, 2005).

After that, this issue moved to state legislatures.

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