SB556 Alabama 2010 Session

Summary

Primary Sponsor

Larry MeansMayor

Democrat

Session

Regular Session 2010

Title

Small wineries, sales and distribution of wine by wineries, wine tasting facilities, direct sale of small wineries' wine, Small Winery Business Viability Act, Sec. 28-7-18 am'd.

Summary

SB556 creates the Alabama Small Winery Business Viability Act to help small Alabama wineries operate more like small businesses by allowing direct sales to retailers, expanded tasting room activities, limited bulk and inter-winery transfers, Sunday sales in eligible areas, and an updated table wine tax structure.

What This Bill Does

It defines what counts as an Alabama small winery and sets a production cap, then allows these wineries to sell up to 24,000 gallons per year directly to Alabama retailers after giving wholesalers a first chance. It also lets small wineries sell wine to other small winery licensees, receive wine and winemaking supplies in-bond, and operate tasting rooms with no excise tax on wine served there (but the wholesaler or winery pays 0.45 per liter). The bill permits limited bulk wine imports from out-of-state producers (up to 20% of annual production) and authorizes Sunday sales of wine in areas where Sunday sales are legal. It updates the table wine tax framework, requiring monthly reporting and establishing license taxes, while clarifying that the act supersedes conflicting statutes or rules.

Who It Affects

• Alabama small wineries (licensees under the Act): they gain authority to sell directly to Alabama retailers (up to 24,000 gallons/year), exchange wine with other small wineries, sell in tasting rooms, receive bulk wine from out-of-state producers (up to 20% of annual production), and pay new license taxes and excise tax rules.
• Alabama licensed wholesalers and retailers: they must be offered products first before direct wholesale sale, must comply with wholesale transport, sales, and record-keeping rules, and participate in the new tax structure for table wine and tasting-room sales.

Key Provisions

• Defines Alabama Small Winery and sets a production cap of less than 75,000 gallons annually; requires ABC licensing and allows tasting rooms and related facilities.
• Allows a licensed small winery to sell up to 24,000 gallons per calendar year directly to Alabama retailers after offering to wholesalers first; permits sales to other small winery licensees and in-bond transfers of wine-related materials.
• authorizes small wineries to receive wine and winemaking supplies from other small wineries and to acquire wholesale spirits and related beverages for on-site tasting rooms, with no excise tax on wine served in tasting rooms and a 0.45 per liter excise tax paid by the wholesaler or originating winery.
• Permits small wineries to obtain up to 20% of annual production in bulk from out-of-state producers, with a $50 annual license tax and required record-keeping and tax remittance.
• Provides Sunday sales allowances in counties where wine sales are legal, with specific on-premises sale hours and location restrictions, and allows certain sales in related facilities owned by the winery or affiliates.
• Amends Section 28-7-18 to set table wine taxes for Alabama-made wine sold directly at retail (0.45 per liter) and requires monthly reporting and remittance; clarifies tax treatment as exclusive of other taxes and establishes distribution of taxes to local authorities.
• States that the Act supersedes conflicting existing statutes or rules and sets an effective date three months after passage and governor approval.
• Includes definitions for terms like Affiliate, Alabama Small Winery, Tasting Room, Small Winery, and other relevant terms to support the Act’s framework.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages