Alabama Governor Kay Ivey signed legislation (H.B. 437), based on Wine Institute’s model direct shipping bill, on May 13, 2021. This makes Alabama the 47th state to allow winery direct-to-consumer (DTC) shipping. Wine Institute thanks Representative Terri Collins for sponsoring the bill and Governor Ivey for signing it. H.B. 437 becomes effective on August 1, 2021.
Under the new law, wineries that obtain a DTC license will be allowed to ship up to 12 cases annually per consumer during a twelve-month period. There is an initial application fee of $200 with subsequent renewals costing $150 per year. Direct shippers will be required to file quarterly reports and collect and remit all state and local sales or use taxes and excise taxes. Wine Institute worked with industry members to negotiate compromise language that will allow DTC licensees to utilize the services of a fulfillment house that has obtained a license from the ABC Board for DTC.