New Mexico Governor Signs Direct Shipping Legislation

On April 6, 2011 Governor Martinez signed direct shipping legislation, Senate Bill 445, into law transitioning New Mexico from a reciprocal state to a permit state. The legislation becomes effective on July 1, 2011 and brings New Mexico into compliance with the U.S. Supreme Court’s 2005 Granholm v. Heald ruling by allowing wineries in every state the opportunity to reach consumers in New Mexico. Wineries with a shipping permit will be able to ship up to two nine-liter cases of wine each month to a consumer in New Mexico. There is an annual permit fee of $50. Permits will be valid from July 1 to June 30 of the following year and must be renewed each year. Additionally, wineries shipping to consumers will be required to pay excise and gross receipts tax to the Taxation and Revenue Department by the 25th day of each month beginning the month after the permit was issued.

The provisions of SB 445 only apply to wineries and do not affect New Mexico’s reciprocal shipping laws regarding retailers. Information about the application process will be posted on Wine Institute’s web site once it becomes available.