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

EMEA IPT
December 7, 2023
Monaco Insurance Premium Tax: An Overview

Monaco is one of many countries with Insurance Premium Tax (IPT) requirements, specifically the Special Annual Tax and Fire Brigade Tax. This blog provides an overview of IPT in Monaco to help insurance companies remain compliant.   What kind of taxes are applicable in Monaco on insurance premium amounts? In Monaco, there are two types […]

North America Tax Information Reporting
December 6, 2023
Can I Still Register for a New Transmitter Control Code (TCC)?

A transmitter control code (TCC) is necessary for businesses electronically submitting information returns to the IRS. We’ve previously discussed how recent changes now require organizations to re-register for a TCC ahead of tax year 2023 filings. However, some filers may not receive active TCCs before their first filing deadline. On average, the IRS claims that […]

North America Unclaimed Property
December 4, 2023
A Look Back at Fall Unclaimed Property Reporting

Another October unclaimed property filing season is now over for both clients and Sovos. Overall, 70% of reports filed by Sovos on behalf of our clients occur for states with deadlines on October 31 and November 1. The last 60 days of the filing period require significant coordination between our clients and Sovos. Many tasks, […]

Spain
November 29, 2023
Taxation of Motor Insurance Policies: Spain

There is a wide variety of indirect taxes and parafiscal charges that apply to the different elements of coverage that can be included under a motor insurance policy in Spain. You can read our blog to learn more about taxation of motor insurance policies in Europe, this blog focuses on some of the specifics to […]

North America ShipCompliant
November 28, 2023
How the Beverage Alcohol Industry Prioritizes DEI Initiatives

Diversity, equity and inclusion (DEI) initiatives have quickly become staples for numerous businesses across industries. The beverage alcohol industry is also demonstrating that these efforts are as core to their company successes as lobbying and member education. We’ve gathered a handful of examples of DEI programs that our partners have implemented, showcasing how ensuring a […]