HOUSE BILL No. 1094
DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-3-25; IC 7.1-4; IC 7.1-5-11-1.5.
Synopsis: Direct sale and shipment of wine. Allows a vintner located
outside Indiana to sell and ship wine directly to an Indiana resident for
personal use if the vintner holds an out-of-state shipper's permit.
Requires the holder of an out-of-state shipper's permit to pay the sales
tax and excise tax on wine sold and shipped directly to an Indiana
Effective: July 1, 2005.
January 6, 2005, read first time and referred to Committee on Public Policy and Veterans
First Regular Session 114th General Assembly (2005)
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HOUSE BILL No. 1094
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 7.1-3-25; (05)IN1094.1.1. -->
SECTION 1. IC 7.1-3-25 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2005]:
Chapter 25. Direct Sale and Shipment of Wine
Sec. 1. As used in this chapter, "seller" refers to a person who
holds a permit:
(1) issued by a state other than Indiana; and
(2) that is the equivalent of a vintner's permit issued under
Sec. 2. If a seller obtains an out-of-state shipper's permit under
this chapter, the seller may sell and directly ship not more than
twenty-four (24) bottles of wine each month from a location outside
Indiana to a person in Indiana who meets the requirements in
section 3 of this chapter.
Sec. 3. A person in Indiana who is at least twenty-one (21) years
of age and does not hold a valid wholesaler permit under this title
(1) order or purchase wine in person or by mail, facsimile
(fax) transmission, telephone, or computer network (as
defined in IC 35-43-2-3) from a seller who holds an
out-of-state shipper's permit under this chapter; and
(2) receive direct shipments of wine for personal use and not
Sec. 4. To obtain an out-of-state shipper's permit, a seller must
provide to the commission:
(1) a completed application on a form prescribed by the
(2) a one hundred dollar ($100) registration fee;
(3) a copy of a permit issued to the seller:
(A) by a state other than Indiana; and
(B) that is equivalent to a vintner's permit issued under
this title; and
(4) any other information required by the commission.
Sec. 5. An out-of-state shipper's permit remains in effect for one
(1) calendar year, including the day the permit is granted as set
forth in IC 7.1-3-1-3.
Sec. 6. A seller who holds an out-of-state shipper's permit shall:
(1) ensure that a container of wine shipped to a person in
Indiana is conspicuously labeled with the words:
"CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE
21 OR OLDER REQUIRED FOR DELIVERY.";
(2) report to the commission annually the information set
forth in section 9 of this chapter;
(3) annually pay to the department of state revenue all sales
taxes and excise taxes due on the sales to residents of Indiana
in the preceding calendar year, calculating the amount of the
taxes as if the sales were in Indiana at the location where the
delivery was made;
(4) allow the commission or the department of state revenue
to perform an audit of the seller's records on request; and
(5) be considered to have consented to the jurisdiction of the
commission, any other state agency, and Indiana courts
concerning enforcement of this chapter and any related laws
Sec. 7. A seller who holds an out-of-state shipper's permit may
annually renew the permit by submitting the following to the
(1) A completed application for renewal on a form prescribed
by the commission.
(2) A renewal fee of fifty dollars ($50).
Sec. 8. The fees collected under this chapter shall be deposited
in the enforcement and administration fund under IC 7.1-4-10.
Sec. 9. A seller who holds an out-of-state shipper's permit must
submit a report to the commission not later than January 31 of
each year, on a form prescribed by the commission, containing the
following information concerning shipments made under this
(1) The identity, quantity, and price of all wine shipped into
Indiana during the previous calendar year.
(2) Other information required by the commission to
implement this chapter.
Sec. 10. The commission and the department of state revenue
may adopt rules under IC 4-22-2 to implement this chapter.
Sec. 11. The commission may revoke an out-of-state shipper's
permit for the failure to pay the excise taxes when required to do
so by this title. The action of the commission is final.
SOURCE: IC 7.1-4-4-3; (05)IN1094.1.2. -->
SECTION 2. IC 7.1-4-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3.
Persons Liable for
Tax. The wine excise tax shall be paid by the holder of the following:
(1) A vintner's permit, a farm winery permit, a wine wholesaler's
permit, a dining car wine permit, or a boat wine permit on the
alcoholic beverage to which the tax is applicable and which has
been manufactured or imported by
him the permit holder into
this state. Indiana.
(2) An out-of-state shipper's permit on the wine to which the
tax is applicable and that has been shipped by the permit
holder into Indiana.
However, the same article shall be taxed only once for wine excise tax
SOURCE: IC 7.1-4-6-1; (05)IN1094.1.3. -->
SECTION 3. IC 7.1-4-6-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1.
Commission and Department. The chairman and the department shall
have the power to examine the books, papers, records, and premises of
a manufacturer, wholesaler, retailer, or dealer, or holder of an
out-of-state shipper's permit under this title for the purpose of
determining whether the excise taxes imposed by this title have been
paid fully and whether the provisions of the title are being complied
SOURCE: IC 7.1-4-7-1; (05)IN1094.1.4. -->
SECTION 4. IC 7.1-4-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1.
Collection of Annual
The chairman shall collect the required annual license
fee paid in connection with the issuance of a brewer's permit, a beer
wholesaler's permit, a temporary beer permit, a dining car permit of any
type, a boat permit of any type, a distiller's permit, a rectifier's permit,
a liquor wholesaler's permit, a vintner's permit, a farm winery permit,
a farm winery brandy distiller's permit, a wine wholesaler's permit, a
wine bottler's permit, a temporary wine permit, an out-of-state
shipper's permit, a salesman's permit, and a carrier's alcoholic permit.
SOURCE: IC 7.1-5-11-1.5; (05)IN1094.1.5. -->
SECTION 5. IC 7.1-5-11-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1.5. (a) Except as
provided in subsection (b),
it is unlawful for a person in the business
of selling alcoholic beverages in another state or country to ship or
cause to be shipped an alcoholic beverage directly to an Indiana
resident who does not hold a valid wholesaler permit under this title.
This includes the ordering and selling of alcoholic beverages over a
computer network (as defined by IC 35-43-2-3(a)).
(b) A seller (as defined by IC 7.1-3-25-1) may sell and ship wine
from a location outside Indiana directly to an Indiana resident who
does not hold a valid wholesaler permit if the seller:
(1) holds an out-of-state shipper's permit; and
(2) satisfies the other requirements;
under IC 7.1-3-25.
Upon a determination by the commission that a person has
violated subsection (a) or (b),
a wholesaler or an Indiana resident
may not accept a shipment of:
alcoholic beverages from
person who has violated
subsection (a); or
(2) wine from a seller who has violated subsection (b);
for a period of up to one (1) year as determined by the commission.
The commission shall adopt rules under IC 4-22-2 to
implement this section.