People Hands Getting Bottle of Red Wine

By Daniel Tyson

With Mississippi’s new direct-to-consumer wine shipping law going into effect earlier this month, wine connoisseurs and the curious alike can now order directly from merchants across the nation, a benefit that appeals to consumers and could buoy the state’s coffers, said supporters.

The bill, SB 2145, was signed by Governor Tate Reeves (R) in February after legislative wrangling between the two chambers. Supporters highlighted the potential for significant new tax revenues while touting consumer freedom. Opponents argued the potential negative impact the new law would have on underage drinking and the state’s package stores.

In the state Senate, the bill was narrowly passed after a last-minute attempt by supporters brought the legislation back after it failed less than 15 hours earlier.  Senators voted against the measure on its first floor action, but upon reconsideration passed the bill by a vote of 24 to 14, achieving the needed three-fifths threshold necessary to pass as more senators were recorded as absent than in the previous vote.

In the House of Representatives, the measure received smoother sailing as it was approved by an 80 to 29 margin, also clearing the required three-fifths threshold necessary for passage.

Importing wines is not a new concept. Forty-seven other states allow direct shipments to their citizens. Senator Michel said that with the proper safeguards in place, there was not a good reason for Mississippi to be the 48th.

The state stands to collect a 15.5 percent tax on all orders, much higher than the 7 percent tax collected from package stores.

During a recent Stennis Capitol Press Forum, Speaker of the House Jason White (R) praised the new law, also saying the increased tax in the new wine shipping law will be good for Mississippi’s revenue.

The law requires that 3 percent of the new tax revenue go to mental health services for an “Alcoholism Treatment and Rehabilitation Fund.”

It remains unclear how the new direct wine shipping bill will impact Mississippi’s package stores. Calls to several retailers across the state were met with no comments from managers and owners. The industry’s state trade group, the Mississippi Independent Package Store Association, did not respond to requests for comments.