HB372 Alabama 2012 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2012

Title

Farm wineries, licensing, fees, distribution, and sale of wine, Secs. 28-3-1, 28-7-13, 28-7-18 am'd

Summary

HB372 creates a new farm winery license in Alabama, allowing small wine producers to manufacture, license, and sell wine with expanded locations, sales options, and a dedicated tax structure.

What This Bill Does

It defines farm wineries as limited manufacturers up to 250,000 gallons per year and lets them obtain a primary license plus two additional locations. It authorizes direct on-site retail sales, on- and off-premises sales to licensed retailers, wholesale purchases of table wine and beer for on-premises consumption, and fortification of wine with brandy up to 24% ABV. It permits sales outside Alabama where allowed by other states, plus a farm winery can sell up to 50,000 gallons to licensees and offer up to five off-site sampling events per year with license display and event listing requirements. It establishes an excise tax of 45 cents per liter on Alabama-made wine sold on-site or as samples, with 38 cents per liter to the state and 7 cents per liter to local governments, collected monthly. It treats farm winery licensees as manufacturers for tax purposes, and existing manufacturers under the容量 limit may renew as farm wineries without reapplying; local taxes are capped at half the state license fee.

Who It Affects

• Farm wineries: gain a new license category, broader sales and location options, and defined tax obligations within a 250,000-gallon limit.
• Existing wine manufacturers: may convert or renew to farm winery status if under the gallon limit, affecting licensing and taxation.
• Wine retailers and licensees: may purchase and receive wine from farm wineries and the program sets quantity and licensing conditions for such transactions.
• Consumers: may buy wine directly from farm wineries, enjoy on-site or off-site tastings, and benefit from expanded access to Alabama-made wine.
• Local governments (counties/municipalities): participate in local tax collection related to farm winery activity, subject to a cap on local charges.
• States outside Alabama: farm wineries may sell table wine across state lines where permitted by other states’ laws.

Key Provisions

• Farm Winery definition: a limited manufacturer producing not more than 250,000 gallons of wine annually.
• License creation and fees: farm winery license with a $150 annual fee; local privilege or license taxes limited to no more than half the state fee.
• Locations: farm wineries may have a primary location plus two additional locations without requiring manufacturing or bottling at all locations.
• Sales and distribution: may sell table wine directly at retail on the manufacturer’s premises, sell to licensed retailers, and purchase wholesale table wine and beer for on-premises consumption at farm winery premises.
• Fortification: may purchase, transport, or receive brandy to fortify wine up to 24% ABV.
• Out-of-state sales: may sell, transport, and deliver table wine outside Alabama as allowed by other states.
• Volume and sampling: may sell and deliver up to 50,000 gallons of fermented table wine to licensees and may offer samples at up to five off-premises events per year with required event listings and license display.
• On-site production sales: may sell fermented table wine produced at the winery by the bottle or case to licensed retailers.
• Taxation: establishes a 0.45 per liter excise tax on wine manufactured in Alabama and sold on-site or dispensed as samples; 0.38 per liter to the state and 0.07 per liter to the local government; taxes collected monthly.
• Tax integration: farm winery license holders are considered manufacturers for tax purposes, and existing licensees under the limit may renew as farm wineries without reapplication.
• Renewal option: current wine manufacturers with production under the limit may renew as farm winery license holders without reapplication.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages