Legality of private sales

Does anyone know of a site with state by state summary of information regarding legality of the resale of wine by consumers? If this has already been covered please move this post to that thread or delete.

I’m pretty sure it is not legal in any state for a non-licensed person to sell wine to another non-licensed person.

Would that make Todd guilty of aiding and abetting for running Commerce Corner here?

Piling on here, I’m pretty sure that’s one of the few federal restrictions vis-a-vis selling beverage alcohol of any sort, most regulatory authority having been delegated (or, at least, that’s the prevailing interpretation) to the individual states under article 2 of the 21st amendment. Which is why we now have 57 different sets of distribution and retail regulations (50 states, DC, and 6 territories; hoowah! )

Pretty much.

I guess WA and WS have similar issues.
This calls for a Constitutional Amendment if you ask me.

P Hickner

Well let’s just add it to the list of insane wine laws. But, yes some states probably wouldn’t look highly on Todd’s forum

Assuming that the sole purpose of state licensing is to make sure that the sale of alcohol is closely tracked so that the states can collect their revenues. ( and yes to protect our children). If the product is then resold “legally” is it taxed again? Are auction houses collecting taxes? If not, then are we not simply being forced to use a state sanctioned broker who really serves no purpose?

Yes, auction houses collect sales tax from the buyers in the states in which they are required to do so, which are those states where the company has a physical presence and the client takes possession of his/her auction purchases in that state. In my case, we have to collect sales tax from those clients who take possession of their wines in the states of California and Texas. For clients in other states, they would be subject to the use tax requirements of their state.

Well if it is sales tax being collected then perhaps it is not an issue here in Massachusetts since there is no sales tax, excise yes, on liquor?

Do you suppose that sites like Ebay and Craig’s List should be collecting sales tax? Should everyone who runs a yard sale be collectiong sales tax?

I can see the rational for states looking to collect sales tax on Internet purchases on new merchandise. The problem I am having is with taxing an item, in particular wine, multiple times.

Alcohol is a controlled substance. This is not a yard sale.

Except that I can purchase alcohol and give it to someone without any problems as long they are of legal drinking age. So it would seem there is greater concern for control if money changes hands and then only if there is no tax being collected.

And as was alluded to earlier the only thing missing from “Commerce Corner” is the “yard”

Well why don’t you go ask a nice TTB employee the proverbial question (not in reference to this board) if you’re so sound and sure in your thinking?

I have only purchased decorative bottles that happened to have liquid in them!!

Being the good lawyer that I am, I actually did just that once. The regulator I spoke to kindly pointed out the exception in the licensing statute for “collectible bottles,” which conveniently is not defined in the statute.

I live in MN, but I’m sure other states probably have a similar exception for private sales of “collectible” or “commemorative” wine.

The TTB is a Federal body, and presumably their rules govern any cross-state transactions. However, it is good to know that at least one state has a carveout for collectibles.

It sounds like MN should update their FAQ though: Alcohol - Licensing FAQ

Q: When is a license required?
A: License required (340A.401) No person may directly or indirectly, on any pretense, sell, barter, charge for possession or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained the proper license or permit.

Here is the carveout though: Ch. 340A MN Statutes
And Sec. 340A.301 MN Statutes

Subd. 8. Sales without license. A licensed brewer may without an additional license sell
malt liquor to employees or retired former employees, in amounts of not more than 768 fluid
ounces in a week for off-premise consumption only. A collector of commemorative bottles,
those terms are as defined in section 297G.01, subdivisions 4 and 5, may sell them to another
collector without a license. It is also lawful for a collector of beer cans to sell unopened cans of a
brand which has not been sold commercially for at least two years to another collector without
obtaining a license. > The amount sold to any one collector in any one month shall not exceed 768
fluid ounces. > A licensed manufacturer of wine containing not more than 25 percent alcohol by
volume nor less than 51 percent wine made from Minnesota-grown agricultural products may sell
at on-sale or off-sale wine made on the licensed premises without a further license.

It sounds like you are capped at around 28 bottles to any one collector per month, but even that is quite large for a Commerce Corner sort of transaction.

Oh, but oops: Sec. 297G.01 MN Statutes

Subd. 4.Collector. “Collector” is a person who collects commemorative bottles for their use and enjoyment as collector’s items and not for the consumption of the beverage contained in them. The term does not include licensed wholesalers or retailers of alcoholic beverages.
Subd. 5.Commemorative bottles. “Commemorative bottles” are ceramic commemorative bottles or other specially designed decanters which have value as collector’s items and which contain an alcoholic beverage.

If it were me, not being a lawyer, I would not want to trust to this. It sounds illegal to unless you have a retail license.