Is Delaware DtC Wine Shipping Right Around the Corner?

Lizzy Connolly
December 5, 2022

Delaware State Rep. Mike Smith (R-Pike Creek Valley) plans to introduce legislation that will open up direct-to-consumer (DtC) wine shipping to Delawareans. Currently, state residents can legally purchase wine through the three-tier system but are not able to purchase directly from a winery and have the product shipped to their front door. Smith’s bill would change that.

“In the state of Delaware, you still cannot have wine shipped directly to your homes,” Smith said in a statement posted to the Delaware State House of Representatives – Republican Caucus Facebook page. “Around the holiday season, one of the things people like to do most is ship a bottle of wine to their friends. Whether that’s through a wine club, through a winery…they want to get their friend, their family that bottle of wine that they’ve been wanting all year round. And in Delaware, you still can’t do that.”

Smith added that the three-tier system is old, antiquated and dates back to Prohibition. It is the main reason people “don’t want to move the needle in Delaware” toward DtC wine shipping, he said.

State Rep. Jeff Spiegelman (R-Clayton) is expected to be a co-prime sponsor of the new bill, according to the statement. Spiegelman said state residents can have prescription drugs delivered to their front doors, and the state is dragging its feet on the issue of shipping wine DtC, as consumers deserve greater choice and the state could benefit from increased tax revenue.

House Bill 210, which would have granted limited DtC wine shipping permissions in the state, was previously introduced in 2021 but did not advance in the legislative session. Smith explained that his latest iteration of the bill would include some of the following elements:

  • Require carriers, like FedEx and UPS, to obtain special licenses to handle wine shipments.
  • Require drivers to receive training on how to responsibly make wine deliveries.
  • Mandate special labeling of the packages.
  • Require licensing of wineries shipping their products to Delaware.
  • Impose the same state alcohol taxes levied on retail sales.
  • Restrict deliveries to adults over the age of 21 that must identify themselves and sign for the package.
  • Set annual limits on the quantity of wine that wineries would be able to ship to individual households and to Delaware as a whole.

“In Delaware, we always pride ourselves on being first,” Smith said. “But in this case, let’s not be last. Happy holidays and let’s get this done for Delawareans.”

Take Action

Want to stay current on the latest DtC wine shipping legislation? Subscribe to our blog and never miss an update.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Lizzy Connolly

Share this post

North America
June 6, 2024
Observations and Predictions: The Future of Tax and Compliance

When I became the CEO of Sovos one year ago, I knew that I was stepping into an innovative company in an industry primed for a seismic transformation. However, even with this knowledge in place, I must admit that the speed and scope of change over the past year has been extraordinary to witness. Here […]

EMEA IPT
July 8, 2024
Hungary Insurance Premium Tax (IPT): An Overview

Regarding calculating Insurance Premium Tax (IPT), Hungary is the only country in the EU where the regime uses the so-called sliding scale rate model.

North America ShipCompliant
July 3, 2024
The Prospects and Perils of AI in Beverage Alcohol

I recently had the privilege of speaking on a panel at the National Conference of State Liquor Administrators (NCSLA) Annual Conference, a regular meeting of regulators, attorneys and other members of the beverage alcohol industry to discuss important issues affecting our trade. Alongside Claire Mitchell, of Stoel Rives, and Erlinda Doherty, of Vinicola Consulting, and […]

North America ShipCompliant
June 27, 2024
Shifting Focus: How to Make Wine Country Interesting to Millennials

Guest blog written by Susan DeMatei, President, WineGlass Marketing WineGlass Marketing recently conducted a study to explore how Millennials and Gen X feel about wine, wine culture and wine country. The goal was to gain insight into how we can make wine, wine club and wine country appealing to these new audiences. We’ll showcase in-depth […]

North America Sales & Use Tax
June 24, 2024
Illinois to Adjust Sales Tax Nexus Rules in Light of PetMeds Threat

Illinois is poised to change their sourcing rules again, trying to find their way in a world where states apply their sales tax compliance requirements equally to both in-state and remote sellers. With this tweak, they will effectively equalize the responsibilities of remote sellers with no in-state presence, to those that have an Illinois location. […]

EMEA VAT & Fiscal Reporting
June 21, 2024
ViDA Rejected Again – Europe Misses Another Chance to Harmonize e-Invoicing

During the latest ECOFIN meeting on 21 June, Member States met to discuss if they could come to an agreement to implement the VAT in the Digital Age (ViDA) proposals. At the ECOFIN meeting in May, Estonia objected to the platform rules being proposed, instead requesting to make the new deemed supplier rules optional (an […]