Idaho considers legislation for out-of-state wineries

BOISE – Idaho has joined several states that are uncorking new laws for wine shipped across state lines, after a U.S. Supreme Court ruling nine months ago forced states to treat local and out-of-state wineries equally.

Under legislation that cleared a House committee Tuesday, Idaho would allow out-of-state wineries to ship up to 24 cases a year directly to customers here for personal consumption – as long as the wineries buy a $50 Idaho permit. That plan is being promoted across the country by the San Francisco-based Wine Institute, which represents 800 California wineries.

It forbids resale of the wine – in restaurants, for example.

Idaho wine exporters would be subject to other states’ laws.

Last May, the Supreme Court struck down laws in New York and Michigan that allowed domestic wineries to ship directly to in-state consumers – but prohibited out-of-state businesses from doing the same thing.

In that ruling’s wake, the Wine Institute has been pushing new legislation to establish uniform rules that allow direct wine shipments to flow more freely. Measures similar to the Idaho proposal have been adopted by 15 states and are being debated in 11 others, said Roger Seiber, a lobbyist for the group.

“This puts in place a system that’s been widely accepted across the United States,” Seiber told members of the House State Affairs Committee on Tuesday, when the panel cleared the bill for House floor debate.

Under the proposal, out-of-state wineries would pay Idaho sales and excise taxes on such transactions. That’s about $250,000 annually. The state has not been collecting taxes on out-of-state wine sales.

People over 21 would have to sign for the wine on delivery, and boxes would have to be clearly labeled.

There would be no limit on wine bought directly from Idaho vineyards or wine-tasting rooms, and taken home by the purchaser.