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Bill Legalizing Wine Shipping In SD Going To Governor

SIOUX FALLS, S.D. (AP) — A bill legalizing consumer-direct wine shipping is on its way to the governor’s desk, bringing South Dakotans one step closer to getting their favorite rare vintages shipped to their door.

The full Senate approved the bill Tuesday that would allow South Dakotans to buy up to 12 cases of wine per year directly from wineries in South Dakota and around the country. South Dakota is one of nine states that currently outlaw the practice, but Gov. Dennis Daugaard could change that. His spokeswoman, Kelsey Pritchard, said the governor supports the current bill.

The bill was pushed last year by South Dakotans for Better Wine Laws, a group made up of Sioux Falls anesthesiologists and nurse anesthetists who enjoy drinking wine together. But it failed in the face of opposition from state retailers and wholesalers. It was revived this year after being studied and amended over the summer.

“Kind of like a bottle of wine, a bill can get better with age,” said Sen. Corey Brown, a Gettysburg Republican who has been pushing for the bill.

Under the latest version of the bill, participating wineries and companies that will carry their wine would have to file quarterly reports with the South Dakota Department of Revenue. Wineries would have to include details such as how much was shipped and to whom, among others. Carriers would also have to provide similar information.

The bill was met with pushback last year from the state’s retailers and wholesalers who felt they would unfairly be paying more in taxes. The new proposal subjects out-of-state wineries to the same taxes that in-state companies must pay in addition to a shipping tax. Wineries and their carriers must also purchase $100 licenses.

“We all gave a little bit, and we all got a little bit, and we came up with a bill that we all can live with. And it’s not often like that,” said Diana Miller, a lobbyist for South Dakotans For Better Wine Laws.

Jeremiah Murphy, the South Dakota lobbyist for the Republic National Distributing Company, said his organization has long opposed allowing direct wine shipping in the state, but that his company supports the bill going to the governor. He said the bill addresses all of their concerns, like equitable taxing.