Bill > SF4349

This bill establishes the Minnesota Grape and Wine Advisory Council, creates a Minnesota grape and wine program and account to provide grants and other financial assistance for the promotion, education, and development of the Minnesota wine industry, imposes a sales and use tax on direct wine shipments to Minnesota residents, and requires a direct shipper license for wineries shipping wine directly to Minnesota consumers. The bill creates the Minnesota Grape and Wine Advisory Council, composed of 15 voting members appointed by the Commissioner of Agriculture, to review and recommend projects for the Minnesota grape and wine program grants. The program provides funding for projects that promote, educate, or develop the Minnesota wine industry and expand grape production in the state. The bill also imposes a 2.5% sales and use tax on gross receipts from retail sales of liquor, including wine shipped directly to Minnesota consumers by wineries holding a direct shipper license. A portion of the revenues from this tax will be deposited into the newly created Minnesota grape and wine account to fund the grant program. Wineries shipping wine directly to Minnesota consumers must obtain a direct shipper license from the state and comply with reporting requirements. Violations of the direct shipper license requirements can result in cease and desist orders and criminal penalties.