Gov. Rick Perry ® May 10 signed legislation that will require out-of-state wineries that make direct shipments to Texas customers to pay excise and sales and use taxes

Food & Drink Weekly, May 16, 2005

Gov. Rick Perry (R) May 10 signed legislation (S.B. 877) that will require out-of-state wineries that make direct shipments to Texas customers to pay excise and sales and use taxes. The new law, which takes effect Jan. 1, 2006, stipulates that excise and sales and use taxes are to be paid at the same rate and in the same manner as if the permitee were a Texas winery.

The legislation would amend the Alcoholic Beverage Code to create a permit for out-of- state wineries that ship directly to Texas consumers. The permit would cost $75 a year. A permit holder could send no more than three gallons of wine to the same Texas consumer in a 30-day period. Consumers purchasing wine from out-of- state wineries are prohibited from reselling it.