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Home > Blogs > Uncorked > Archives > 2005 > October > 31 > Entry
Lawmakers Likely to Ease Ohio’s Wine-Shipping Laws
It appears wine may be flowing more freely into Ohio soon — and legally.
Back in May, I cautioned wine consumers — at least, those who wanted to order wine from outside Ohio and ship it into the state — to think twice before popping their corks …
…in celebration of a U.S. Supreme Court decision that at first blush appeared to pave the way for just that type of wine transaction.
“In the end, the decision could mean more restrictions on direct shipping of wine than those that Ohioans currently face,� I wrote at the time.
That’s because the 5-4 ruling didn’t really approve interstate shipping. It simply said states couldn’t treat out-of-state wineries differently from in-state wineries, which in Ohio have long had the ability to sell and ship wine inside Ohio.
At the time, a coalition that included Mothers Against Drunk Driving and the companies that distribute wine on the wholesale level (and which stand to “lose� money whenever an Ohioan buys wine online) made noises about proposing legislation that would restrict shipping for everybody, raising the red-herring argument that online wine purchasing would lead to teen-agers buying alcohol online.
This battle is raging in Michigan, where lobbyists for a group calling itself Point Click Drink are trying to whip this issue into a frenzy with “helps us protect our children� e-mails citing surveys that show — gasp! — that teen-agers spend a lot of time online, and buy things online, too.
Earth to panic-pushers: teen-agers looking to score alcohol are not going to get online, order a case of fine cabernet sauvignon from a boutique winery in California, wait a week for it to arrive on the doorstep, gamble that they’ll be the only one home when it does arrive, convince the delivery driver that they’re legal adults and can sign for the beverage, then call all their buddies, pull corks and start swirling, sniffing and sipping. The argument is bogus.
And the folks in charge in Columbus apparently see right through the spin and the hype.
State Rep. Jon Husted, R-Kettering, is speaker of the Ohio House of Representatives and is at the moment one of the most — if not THE most, given recent events involving state office holders Columbus — influential policy makers in the state. And Husted told me in a phone interview that he and fellow legislators are leaning towards a less restrictive shipping system.
“We’re looking at legislation that would open it up,� Husted said, so out-of-state as well as in-state wineries can ship their products to Ohioans. Husted wants the wine to be clearly packaged as alcoholic beverages, and he wants shippers to ensure minors won’t be taking shipment of alcohol. And he wants to make sure Ohio collects appropriate taxes on all of the transactions.
Most importantly, Husted said he knows of no legislation being prepared to take the issue in the other direction — to ban it for both interstate and intrastate shipping.
Meanwhile, news of the relaxation of Ohio’s original shipping restrictions that occurred after the court decision is spreading in California: local folks who buy wine from California wineries are reporting that those wineries are now more likely to ship to Ohio. The legislation Husted is talking about would confirm and cement those new, less restrictive rules.
It’s still too soon for wine enthusiasts who support the open system to pop their Champagne corks. But it may be time to start icing down those bottles.
Cheers!
Mark Fisher
P.S. For more information, and a point of view quit a bit different from the Point Click Drink organization linked to above, see Free the Grapes.
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Comments
By Wine-Wench
November 1, 2005 5:00 PM | Link to this
The PointClickDrink people are wackos. IMHO, natch. Mark is right: Teens aren’t going to order cases of wine through the Internet. I would like for Ohio to jump into the 21st century. I guess we’ll see… Meanwhile, thanks Mr. Uncorked for keeping us informed!
By Greg
November 1, 2005 2:14 PM | Link to this
Another view from Pennsylvaniaon this issue. (from WineAcess.com) The state of Pennsylvania responded to the Supreme Court Ruling by curtailing in-state wine shipments from Pennsylvaniawineries so as to prohibit the direct sale of wine into the state from out-of-state wineries. Pennsylvaniawine enthusiasts have long been frustrated by an archaic system that assesses a whole variety of taxes. One of the taxes, the 18% “Johnstown Flood Tax” was originally created to channel emergency relief to victims of the Johnstown Flood - back in 1930’s! The legislative windfall created by the Johnstown Flood tax now drops close to $200,000,000 into state coffers annually. But there’s another interesting wrinkle to the Pennsylvania decision that could impact other states as well. In Pennsylvania, state wineries are permitted to operate direct-sell retail outlets. Sales in these outlets are not subject to state liquor taxes. The flavor of the Supreme Court’s decision was broad, speaking not only to the shipping issue, but to any other privilege states are granting only to in-state wineries. In a suit filed by an attorney in the state of Indiana, the plaintiff challenges the state’s right to allow in-state wineries to operate retail shops and sell to restaurants without being subject to state liquor tax. It would seem the state is in a corner. Either it curbs all special rights offered to Pennsylvania wineries (thus forcing most of the 111 state wineries into receivership) or it allows out-of-state wineries all of the privileges of in-state wineries. The state’s wine lovers may finally have something to toast in 2006.
By jens
November 1, 2005 12:56 PM | Link to this
As a retailer in Ohio, I think they should open up the shipping laws. Conversely, if they limit shipping, they will kill the in-state wineries. Most of my customers will not order a $15 bottle of wine from California that they can get in my store. And if they find a great wine on their next trip to Napa Valley, get a bottle for me. I love wine and wine lovers!
By (Paul) Gordon Larmeu
October 31, 2005 7:14 PM | Link to this
Mark: Thanks for posting this article! I am glad to know that the elected people in Columbus are “doing the right thing” by all of us who buy and drink wine from anywhere/everywhere we find it. Keep up the good work reporting this stuff. Gordy
By John C.
October 31, 2005 12:45 PM | Link to this
We really do need to get the state of Ohio out of the wine and liquor business, period. The restrictions it places on consumers date from the end of Prohibition. Those restrictions have actually cost the state more in tax revenues than they have preserved. This sort of debate shows just how far behind Ohio is in facing a new, interactive world.