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New bill could bring rare wine to New Yorkers’ doorstep

The new bill could end New York’s prohibition-era ban on wine shipments from out-of-state retailers, offering consumers unparalleled access to a greater array of wines. 

In a move that could revolutionise how New Yorkers shop for wine, the state is considering legislation to allow shipments from out-of-state wine merchants directly to consumers. Senate Bill 1700 and Assembly Bill 556, supported by the National Association of Wine Retailers (NAWR) aim to end longstanding restriction that has kept countless rare and sought-after wines out of reach for residents.

For nearly 90 years since the end of Prohibition, New York has tightly controlled its wine market. While residents can receive shipments from in-state retailers, local wineries, and even out-of-state producers of cider, mead, and spirits, they reman barred from accessing wines sold by out-of-state retailers. The proposed legislation seeks to eliminate the “protectionist” ban, providing consumers with access to an estimated half a million wines unavailable locally.

Tom Wark, executive director of NAWR, puts it plainly: “Its remarkable and a little embarrassing that we live in an age when New York consumers can buy and receive shipments of nearly every single product in America from retailers all over the country, including wine, spirits and cider from in-state and cider from in-state and out-of-state producers… But not from out-of-state wine merchants.

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He continues: “If New York lawmakers can figure out how to regulate wine shipments from New York wine stores, New York wineries, and out-of-state wineries, I’m confident they can figure out how to remove the protectionist ban on consumers receiving wine shipments from out-of-state wine retailers and successfully regulate the shipment of these products.”

The framework

The proposed bills include a robust regulatory framework, modelled after New York’s existing policies for out-of-state winery shipments, which generate millions in tax revenue annually. Under the new structure, out-of-state retailers would be required to:

  1. Obtain a permit from the New York State Liquor Authority.
  2. Remit sales tax on all shipments.
  3. Submit to New York’s legal jurisdiction.
  4. Provide regular shipment reports.
  5. Ensure adult signatures upon delivery.

The white paper released by NAWR argues that the three-tier system, which governs alcohol distribution in New York, would remain intact. “Direct shipments from out of-state- retailers do not impact the functioning of the state’s three-tier system,” the report states. Instead, the change would allow consumers to find rare and small-production wines that are often unavailable in traditional retail outlets.

Wark further highlights the potential benefits for New York’s economy: “Interstate retailer shipping is a revenue enhancer for the state. If interstate shipping is blocked, the state collects nothing when consumers can’t find the wine locally. With these shipments legal, the tax revenue stays here.”

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