A bill passed by the Michigan Legislature will help law enforcement and state tax authorities crack down on illegal wine shipments, a move praised today by Craig Wolf, President and CEO of the Wine & Spirits Wholesalers of America (WSWA), a trade group representing American family-owned wholesalers.
Senate Bill 1088 was approved by the Michigan Senate in October and was subsequently passed in mid-December by the state House of Representatives.
Governor Rick Snyder signed the measure January 9. It requires common carriers like FedEx and UPS that deliver beverage alcohol into Michigan to report alcohol shipped into the state as well as the items’ point of sale.
WSWA and a coalition of industry organizations have noted that the move will help the state recoup millions in tax revenue each year because of the estimated $64 million annually in illegal wine shipments that have previously gone unreported and untaxed.
“This will go far in helping state officials track and collect legitimate tax revenue for wine sold and shipped legally into Michigan. Whether it is a supplier, a wholesaler or winery, distillery or brewer—members of the beverage alcohol industry are committed to responsible and effective regulatory oversight. Senate Bill 1088 will ensure that businesses shipping into Michigan are licensed, legitimate, and are not undercutting regulatory oversight or avoiding payment of taxes,” WSWA President and CEO Craig Wolf said.
WSWA is a national trade association representing the wholesale tier of the wine and spirits industry and is the voice for wholesalers in Congress, the administration, the courts, with the news media and in communities across America. To learn more visit www.wswa.org.