Arizona

On March 31, 2016 Arizona enacted legislation, SB 1381 – removing the winery visitation requirement and opening shipping to wineries of all sizes. The new law provides for limited, regulated, tax-paid wine shipping by wineries in the United States that obtain a DTC (series 17W) license. The new law does not impact wineries producing not more than 20,000 gallons of wine annually that hold Out-of-State Farm Winery licenses. The renewal period for 17W licenses is Feb. 1 to Feb. 28th.

• The amount of wine that can be shipped per 17W license holder per person, per year, is phased in over three years: 6 cases through 2017; 9 cases in 2018; and 12 cases beginning in 2019 and thereafter.
• There is no limit on the amount of wine that an Out-of-State Farm Winery license holder producing up to 20,000 gallons of wine per year may ship to AZ consumers.
• The Transaction Privilege Tax (TPT) rate is determined by the address being shipped to.
• Some municipalities may charge a TPT license fee.
• Out-of-State wineries only shipping to AZ consumers should not be required to obtain municipal business licenses.
• Licensees must verify the age of the purchaser by using an Online Age Verification Service or obtaining a copy of the purchaser’s government issued photo ID.
• Wine sold and shipped directly to a person must be shipped in containers that are conspicuously labeled with the words: “Contains alcohol: Signature of person 21 years of age or older required for delivery.”

Wineries that do not hold a 17W or Out-of-State Farm Winery license are prohibited from making on-site or off-site direct-to-consumer wine shipments into the State of Arizona.