Ohio Governor Mike DeWine signed the state’s budget bill (HB 110) on June 30, 2021, which includes a provision that brings to a close years of work by Wine Institute to open up DTC wine shipping in Ohio to wineries that produce more than 250,000 gallons. Wine Institute’s long-running support of the effort included on-the-ground legislative advocacy by Northeastern Counsel Carol Martel and local lobbyist Jeff DeLeone.
The budget creates a new S-2 permit for wineries producing the larger volume and changes the existing S permit, for wineries that produce fewer than 250, 000 gallons of wine, to a S-1 permit. Under the new law, there will be no changes in the permitted activities for those smaller wineries.
S-2 permit conditions include:
- S-2 DTC permit holders will be permitted to ship wine that the winery has manufactured to Ohio consumers who are 21 years of age or older.
- The initial fee for the S-2 permit is $250 and the renewal fee is $100.
- Wineries must collect and remit all applicable taxes to the state.
- Delivery must be made by common carrier, an H permit holder. H permit holders must verify that the recipient is 21 years of age or older.
- Wineries must report annually to the division all orders delivered to Ohio residents.
- Wineries may use fulfillment warehouses to send wine to Ohio consumers. The fulfillment warehouse must register and report all shipments to the division.
- There is a 24-case limit per household.
- The permit is subject to Ohio jurisdiction and audits.
The new law becomes effective on Sept. 30, 2021. Wine Institute will continue to keep members informed on developments.