South Dakota Governor Signs Direct-to-Consumer Wine Shipping Bill into Law

Today, Governor Dennis Daugaard signed direct-to-consumer wine shipping legislation (HB 1001) into law making South Dakota the 43rd state (as well as the District of Columbia) to allow wineries to ship directly to consumers, which was previously prohibited by law. The legislation establishes a wine direct shipper license to be issued by South Dakota’s Department of Revenue.

“On behalf of our Wine Institute members, we would like to commend Representative Roger Solum and Senator Corey Brown for their leadership in supporting this bill,” said Robert P. (Bobby) Koch, Wine Institute President and CEO. “The passage of South Dakota direct wine shipping is a win for consumers in expanding their access to wines of their choice.”

Under the provisions of the bill, any winery that holds a federal basic permit and pays an annual fee of $100 may obtain a direct shipper license. With the license, a winery may ship up to 12 cases of wine produced under their federal basic permit to any adult consumer in South Dakota during a calendar year. Prior to shipping the wine, the direct-to-consumer licensee must verify the age of the person placing the order by obtaining a copy of the person’s government issued photo ID or by using an online age verification service.

In addition to holding a license, direct shippers must pay sales and excise taxes and file quarterly shipment reports. Labels that are not already registered and consigned to a South Dakota wholesaler must be registered with the Department of Revenue prior to being shipped. The legislation also prohibits direct shippers from selling products below the manufacturers’ cost. The provisions of HB 1001 go into effect Jan. 1, 2016. Wine Institute will keep its members informed on developments and the availability of applications.

Wine Institute is the public policy advocacy association representing nearly 1,000 California wineries and affiliated businesses that initiate and advocate state, federal and international public policy that enhances the environment to responsibly produce, promote and enjoy wine.