New Rules Proposed On Wine Collectors, Small Winery Cooperative Wholesalers – Wisconsin

The Wisconsin Department of Revenue has recently proposed to adopt rules to provide the requirements for the registration and sale activities of wine collectors and for the creation and operation of small winery cooperative wholesalers.  The proposed rules provide the requirements for registration of wine collectors, the sale of wine by the collector to other wine collectors and notice to the department in advance of any sale.  The rules also detail the procedure required for the creation and organization of small winery cooperative wholesalers.  In addition, the rules create a provision specifying that the department may approve cooperative wholesaler applications to provide greater public convenience and service to all areas of Wisconsin, and detail the activities that are authorized for small winery cooperative wholesalers.  Under federal law, a presumption arises that the sale of 20 gallons or more of wine is evidence that the person making such sale is carrying on the business of a wholesale dealer and is required to hold a wholesaler’s basic permit under the Federal Alcohol Administration Act.