Wineries see gains since N.Y. shipping law

on 28/10/11 at 9:32 am

Booze News

A 2005 law that allowed New York wineries to ship products directly to customers and permitted other states to send wine to the state has led to millions of dollars a year in tax revenues for New York.

Before 2005, individual customers in New York could get shipments from in-state wineries, but not from their out-of-state counterparts, state Liquor Authority Chairman Dennis Rosen said at a public hearing Tuesday on the impact of the direct wine shipment law.

Six years later, more than 800 wineries from 15 states are registered with New York and can ship wine to customers in the state. Thirty-eight states allow some form of direct shipment, Rosen said.

The Liquor Authority has collected $431,375 in permit fees from wineries in the 15 states that ship to New York. Wineries that shipped directly reported $54 million in sales to New York consumers between March 2009 and February 2010, which yielded about $4.5 million in sales taxes, he said.

New York adopted a direct-shipping law after the U.S. Supreme Court ruled that New York’s and Michigan’s laws barring wineries in other states from shipping directly to their own residents was unconstitutional, Rosen said.

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