Pa. Senate panel OKs changes to wine home delivery

HARRISBURG - A Senate panel approved a measure Tuesday to broaden and better regulate the home delivery of out-of-state wine to Pennsylvanians, a practice that has slowly evolved but lacked uniform rules.

The bill would allow out-of-state wineries to pay $100 for a license to ship wine directly to customers in Pennsylvania. Residents could buy as many as 36 cases a year from a single winery.

If the bill becomes law, supporters say, the commonwealth would comply with court rulings striking down the prohibition of out-of-state shipments.

"This will make us look like every other state," said Sen. Charles McIlhinney (R., Bucks).

The bill does not address liquor privatization, an issue still under consideration this year. McIlhinney, chairman of the Law and Justice Committee, which approved the measure, said wine delivery laws needed to be updated regardless of whether liquor and wine continue to be sold from State Stores.

Under current state law, wine shipments to Pennsylvania are limited to nine liters per month per resident, and must be shipped to a State Store for pickup. Out-of-state wineries can also apply to ship directly to homes in Pennsylvania, but only 20 have done so.

Cost could be a reason.

Liquor Control Board spokeswoman Stacey Kriedeman said out-of-state wineries can ship to homes if they apply for the same license that Pennsylvania wineries obtain. That license costs $415 per year, in addition to a $700 first-time application fee.

But because state and federal court decisions - including a 2005 U.S. Supreme Court ruling - struck down the law, other wineries have been shipping to Pennsylvanians without applying for licenses or paying taxes.

"They're just putting it in a brown box and sending it," McIlhinney said. "Some of the bigger ones that are a little concerned about it are saying, 'I don't want to ship there until you guys fix' " the law.

It is unclear how widespread the practice is. McIlhinney said larger wineries are not shipping to Pennsylvania, and 19 states have passed reciprocity laws saying wineries here cannot ship to customers within their borders if their vineyards can't send bottles to Keystone State customers.

The shipments would be subject to a 6 percent sales tax. Voting, 6-4, along party lines, the Senate panel also approved a $1-per-gallon tax instead of the 18 percent tax currently charged at state liquor stores.

While the House passed a version of the bill in May, it was amended again by the Senate panel. The bill will now go back to the House for consideration.