ARIZONA STATE SENATE
Phoenix, Arizona
direct shipment of
liquor
Purpose
Permits an adult resident of this state to receive limited amounts of wine from another state without payment of state tax, fees or charges, if that state has an equal reciprocal wine shipment agreement with Arizona.
Background
Currently, all liquor that is shipped into this state must be distributed through a licensed wholesaler and retailer before it reaches an individual for personal consumption. The ability to regulate this aspect of interstate commerce was given to states upon the repeal of Prohibition. Since that time, 33 states, including Arizona, have utilized the three-tiered system (manufacturer-wholesaler-retailer). However, a number of states have eased restrictions on interstate shipments for personal consumption.
In 2001, nine states allowed direct shipment to holders of special permits or under other such restrictions, and 13 states authorized the direct shipment of wine through reciprocity legislation. What sets aside reciprocity legislation is that shipments are limited to wine for personal consumption and can only be made from states that afford each other the same reciprocal privilege.
S.B. 1226 allows adult residents of this state to receive a limited amount of wine from another state without payment of state tax, fees or charges, if that state has an equal reciprocal shipping agreement with this state.
There is an
impact to the state general fund due to the exemption in the bill from state
taxation on shipments, but the impact is indeterminable.
Provisions
1. Allows a resident of this state who is at least 21 years of age to receive, for personal use and not for resale, wine from another state without payment of state tax, fees or charges if there is an equal reciprocal shipping agreement between the states.
2. Provides that delivery of a shipment under this act is not a sale in this state for tax purposes.
3. Limits the amount of wine a person receives to two cases, with a maximum of nine liters per case, per month.
4. Requires a person who transports wine under this act to comply with all of the following:
a) clearly label the shipping containers as an alcoholic beverage.
b) not deliver to a person who is under 21 years of age.
c) not deliver to a person who is visibly intoxicated.
d) require the signature of the person who receives the wine shipment.
e) keep the receiver of the wine delivery on file for one year.
f) not deliver more than to two cases of wine to the same address in a single delivery.
5. Applies the direct shipment of wine only to sales made by a retailer who is not authorized to sell at wholesale or to retail sales by a winery of its produced or bottled wine.
6. Specifies that the laws governing the three-tiered system for out-of-state producers shipping spirituous liquors into this state do not apply to direct shipments of wine.
7. Makes a technical change.
8. Provides for a general effective date.
Prepared by Senate Staff
February 15, 2002