Winery News
Until July 2007, wineries in the State of Alaska wineries were only allowed to sell to individuals from the winery premises or through licensed distributors, internet sales were not allowed. However, nothing in the Federal laws would have prevented us from internet sales. It was very frustrating for us for that our own state laws would discourage such sales. Finally, in July of 2007, after three failed attempts, House Bill 34 which was sponsored by Representative Gabrielle LeDoux passed. We are now able to sell our wines within the state of Alaska via the internet. However, we are not currently selling out of state. Each state has differing rules governing importation of alcohol and we are not yet set up in any other states. We will add other states to our shipping as time allows. We currently ship with only one carrier (DHL).
Although we are pleased with the new legislation that allows us to at least sell in state via the internet, our next obstacle is a financial one. In 2002 the State Legislature passed House Bill 225 (see below) levying an increase from .85 to $2.50 per gallon as a State alcohol excise tax. Alaskan breweries however, got Representative Norman Rokeberg to introduce section (c) in the Bill to exclude small breweries from paying this increased tax. Essentially, breweries only have to pay $1.07 cents per gallon in taxes but wineries are charged $2.50 per gallon. Senator Lisa Murkoswki introduced the Bill and allowed no one to introduce a winery exemption into the Bill. As an emerging industry, Alaskan wineries have tried to gain the same "Alaskan" support as brewers. As you may guess, achieving this support takes a lot of time, money and influence.
Senator Alan Austerman, Representative Gary Stevens, and Representative Gabrielle LeDoux have introduced legislation four times to do away with this unequal treatment of wineries, most recently in 2005. Unfortunately, this legislation still has not passed. We would welcome your support by encouraging you to call an Alaskan legislature and tell them you support Alaskan wineries.
We welcome all help and comments. Numbers to call are:
Kodiak
Legislative Information Office:
Gary Stevens and Gabrielle LeDoux (907) 486-8116
Governor Sarah Palin's Office (907) 269-7450
State Alcoholic Beverage Control Board (907) 269-0350
SENATE CS FOR CS FOR
HOUSE BILL NO. 225(RLS)
01 "An Act relating to state taxation of alcoholic beverages; and increasing the
alcoholic
02 beverage state tax rates."
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
04 * Section 1. The uncodified law of the State of
Alaska is amended by adding a new section
05 to read:
06 PURPOSE. The purpose of the alcohol
and other drug abuse treatment and prevention
07 fund established by sec. 4 of this Act is to finance the establishment and
maintenance of
08 programs under AS 47.37.030 for the prevention and treatment of alcoholism,
drug abuse, and
09 misuse of hazardous volatile materials and substances by inhalant abusers.
10 * Sec. 2. AS 43.60.010(a) is amended to read:
11 (a)
Except as provided in (c) of this section, every [EVERY] brewer,
12 distiller, bottler, jobber, retailer,
wholesaler, or manufacturer who sells alcoholic
13 beverages in the state or who consigns
shipments of alcoholic beverages into the state,
14 whether or not the alcoholic beverages
are brewed, distilled, bottled, or manufactured
01 in the state, shall pay on all malt
beverages (alcoholic content of one percent or more
02 by volume), wines, and hard or distilled
alcoholic beverages, the following taxes:
03
(1) malt beverages at the rate of $1.07 [35 CENTS] a gallon
or fraction
04 of a gallon;
05
(2) cider with at least 0.5 percent alcohol by volume but not
more
06 than seven percent alcohol by volume,
at the rate of $1.07 a gallon or fraction of a
07 gallon;
08
(3) wine or other beverages, other than beverages described
in (1) or
09 (2) of this subsection, of 21
percent alcohol by volume or less, at the rate of $2.50
10 [85 CENTS] a gallon or fraction of a
gallon; and
11
(4) [(3)] other beverages having a content of more than 21 percent
12 alcohol by volume at the rate of
$12.80 [$5.60] a gallon.
13 * Sec. 3. AS 43.60.010 is amended by adding a new
subsection to read:
14 (c)
A brewer shall pay a tax at the rate of 35 cents a gallon on sales of
the first
15 60,000 barrels of beer sold in the state
each fiscal year beginning July 1, 2001, for beer
16 produced in the United States if the
producing brewery meets the qualifications of 26
17 U.S.C. 5051(a)(2). To
qualify for the tax rate under this subsection, the brewer must
18 file with the department a copy of a
Bureau of Alcohol, Tobacco and Firearms
19 acknowledged copy of the Brewer's Notice
of Intent to Pay Reduced Rate of Tax
20 required under 27 C.F.R. 25.167 for the
calendar year in which the fiscal year begins
21 for which the partial exemption is
sought. If proof of eligibility is not received by the
22 department before June 1, the tax rate
under this subsection does not apply until the
23 first day of the second month after the
month the notice is received by the department.
24 For purposes of applying this subsection,
a barrel of beer may contain no more than 31
25 gallons.
26 * Sec. 4. AS 43.60 is amended by adding a new
section to read:
27 Sec.
43.60.050. Disposition of proceeds. (a) The alcohol and
other drug
28 abuse treatment and prevention fund is
established in the general fund. The
29 Department of Administration shall
separately account for 50 percent of the tax
30 collected under AS 43.60.010 and deposit
it into the alcohol and other drug abuse
31 treatment and prevention fund.
01 (b)
The legislature may use the annual estimated balance in the fund to make
02 appropriations to the Department of
Health and Social Services to establish and
03 maintain programs for the prevention and
treatment of alcoholism, drug abuse, and
04 misuse of hazardous volatile materials
and substances by inhalant abusers under
05 AS 47.37.030.
06 (c)
Nothing in this section creates a dedicated fund.
Alaskan Wilderness Wines
Steve & Lisa Thomsen
498 Shearwater
PO Box
3574
Kodiak,
AK 99615
(907) 486-1420
Cell: (907) 539-6328
Email: alaskawildwine@gci.net