Important changes coming in 2020
We wanted to bring attention to a few things that will potentially affect your business 2020. We hope this roundup will help you cross one more thing off your mile-long December to-do list so you can enjoy that nice winter break.
- The Craft Beverage Modernization and Tax Reform Act (CBMTRA), which took effect two years ago to reduce federal excise taxes, will extended. On December 17, the U.S. House of Representatives passed a one-year extension as part of a broader 2020 appropriations bill. On December 19, the U.S. Senate finalized passage through Congress. It now moves to presidential approval. This is only a 1 year extension.
- (Refrigerant R22) will be banned in 2020. Refrigerant R22 (also commonly called Freon) has been used in the production of refrigeration equipment for decades. Over time, scientists have begun to realize the environmental danger of Chlorofluorocarbon (or CFCs) in refrigerants like R22, the Global Warming Potential of which contributes heavily to the depletion of the ozone layer. Read our recent post all about the changes here.
- 2019 is coming to a close with no new states added to the list of the 46 states that allow wineries to ship to consumers. Alabama, Arkansas, Delaware, Kentucky, Mississippi, Rhode Island, and Utah still prohibit offsite shipments.
- Wine retailers are feeling momentum following a favorable ruling in the Tennessee Wine Supreme Court case, and the addition of two states (Connecticut and Florida) to bring the retailer direct-to-consumer (DTC) map to 16 states and counting.
- The Texas Alcoholic Beverage Commission (TABC) plans to audit all 1,600 direct shipping licensees and has begun the first few tranches, focused on the biggest shippers first.
- The California Consumer Privacy Act (CCPA), which is roughly similar to the General Data Protection Regulation (GDPR) privacy rules in Europe, takes effect on January 1, 2020. However, the final rules have not yet been published, and a compliance grace period is expected. See this fact sheet for more information on the CCPA.
- California ABC put out an advisory on the automatic renewal of (wine, beer, spirits, or other subscription) clubs. Given recent enforcement action, it’s important to review your subscription offerings to make sure they comply.
- Many states adopted economic nexus rules and/or laws following the 2018 South Dakota v. Wayfair, Inc. Supreme Court ruling. Although wineries shipping DTC were already required to register for sales taxes in most states, a few states implemented laws that do have impacts on wineries. For example, California now requires business selling more than $500,000 in California to pay district taxes, and Colorado requires sales tax registration and remittance of state, special district, and “state-collected” local taxes if businesses sell more than $100,000 to Colorado consumers.
Have questions? Post a comment below, send us an email at ttinfo@tanktemp.com, or call us at 503-389-8818 for more information.
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