P.L.2011, c.207 allows for out-of-State wineries to sell wine directly to consumers in New Jersey. The wineries participating in these sales must collect and remit applicable state taxes from their New Jersey customers. The law also clarifies that holders of out-of-State winery licenses are subject to the tax clearance and licensing provisions of the New Jersey Uniform Tax Procedure Law, R.S.54:48-1 et seq. and section 5 of P.L. 2004, c.58 (C.54:50-26.3).
If you plan to direct ship wine to New Jersey consumers you must register your business with the New Jersey Division of Revenue and Enterprise Services (DORES).
If you are applying for an out-of-State winery license, you are required to post a bond with the Director of the Division of Taxation. Your bonding company must complete a Beverage Tax Bond form. We will then notify you of the exact amount of the bond required to be posted. You must post the bond before we issue a license.
The amount of the bond, fixed by the Director of the Division of Taxation, may be increased or reduced at any time and is subject to the limitations provided in N.J.A.C. 18:3-5.2.
The Director may require a bond in the amount no greater than three times the tax on the greatest amount of alcoholic beverages handled during a bimonthly period of the previous 12-month period. The total amount of the bond required to be filed may never exceed $1,000,000.00 nor can it be less than $1,000.00.
In determining the bond amount the Director shall take into account any information which would establish the applicant's financial responsibility. If the applicant has never before engaged in business in New Jersey as a licensee, the Director may perform an investigation and fix the amount of the bond on any information obtained.
You are required to file a bimonthly beverage tax report, Form R-1-W.
In addition, the total gallons of all wine sales directly shipped to New Jersey consumers must be reported on Form R-7 (Schedule D-W). Although a complete itemized list of all consumers is not required when filing the return the complete list must be maintained for a minimum of three (3) years and must be made available to the Division of Taxation upon request.