Our friends and WineAmerica supplier member ShipCompliant penned this highly informative blog posting about direct shipping opening up in NJ.
May 1st, 2012
By Sarah Werner - ShipCompliant Research Team
Spring brings more than flowers this year for supporters of
direct shipping. After three and a half months of anticipation and
preparation, the New Jersey Division of Alcoholic Beverage Control
posted checklists, forms and applications on their site, making
S 3172
a reality for the wine industry. Effective May 1, New Jersey is
accepting applications for the Out-of-State Winery License from wineries
producing less than 250,000 gallons (roughly 105,000 cases) annually.
Annual production dictates the fee for the new license:
- Less than 1,000 gallons – $63
- Between 1,000 and 2,500 gallons – $125
- Between 2,500 and 30,000 gallons – $250
- Between 30,000 and 50,000 gallons – $375
- Between 50,000 and 250,0000 gallons – $938
In addition to the listed winery license fees, New Jersey will make
out-of-state wineries work hard for entry into the 40th U.S. state to
allow direct shipping. The latest information indicates out-of-state
wineries must: 1) register their business with the Secretary of State
($125); 2) register their business with the Division of Taxation for
payment of state sales and excise taxes; 3) post a beverage tax bond
(ranging from $1,000 to $1,000,000 depending on anticipated sales); and
4) submit the license application with the fee, outlined above, to the
New Jersey Alcoholic Beverage Control (NJ ABC). New Jersey also
requires all products shipped into the state to be brand-registered at a
cost of $23 per label.
In an unanticipated twist, corporate laws in New Jersey require any
foreign (non-New Jersey) corporation that secures a license from a state
agency (for example, a wine shipper’s license from the NJ ABC) to
establish nexus with the state.
With this nexus, out-of-state
winery licensees must also annually file corporate income tax and pay a
minimum of $500/year, depending on gross revenues.
Partnerships are also subject to a tax of $150/partner/year and annual
filing. All wineries applying for the license should be aware that they
are subject to this requirement.
On top of direct shipping capabilities for Out-of-State Wineries,
with the payment of an additional fee (from $100 to $1000 depending on
annual production), licensees may ship directly to New Jersey retailers.
Common carriers are not allowed to ship these orders to retailers, and
price posting is required on products for sale to retailers.
Additionally, licensees have the option to open up to 16 tasting rooms
within New Jersey for a fee of $250/site.
Here are the forms referenced in New Jersey’s
checklist and
instructions, in order of appearance:
We realize that the application process in New Jersey is a little
daunting, so ShipCompliant has already geared up EasyWineLicensing.com
to facilitate the licensing process. Visit
www.easywinelicensing.com
before May 15th with the coupon code “EWLNJ” and save 35% off
ShipCompliant service fees to obtain a New Jersey direct shipping
license.