DelawareHS 2 for HB 187153rd General Assembly (2024–2026)HouseWALLET

AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO DIRECT PURCHASING AND SHIPMENT OF WINE.

Sponsored By: Michael F. Smith (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 3 costs, 2 mixed.

Wine businesses pay new license fees

Wine direct shippers sending 200 or fewer cases annually to Delaware residents pay $400 every two years. Those sending more than 200 cases annually pay $3,600 every two years. Qualifying wine carriers pay $500 every two years. These are business fees; the law does not specify a change in household wine prices.

Household wine shipping access has expiration

The wine direct-shipping framework expires five years after enactment unless the General Assembly passes another law to change that. Expiration ends the shipping rules created by this law for households, wineries, and carriers. The alcohol regulator must study effects on Delaware wine retailers and report to the Governor and General Assembly by June 1, 2028. The supplied text does not give the enactment date, so the exact expiration date is unavailable.

Wine shippers must pay Delaware taxes

Out-of-state wine shippers must pay Delaware excise taxes monthly, or on another schedule set by regulation. Existing tax rates apply as though sales occurred at the Delaware delivery location; in-state shipments also receive Delaware-sale tax treatment. Shippers must file monthly invoices listing price, quantity, recipient name and address, and tax collected, keeping records at least three years. Out-of-state shippers must also report shipment totals, recipients, tracking numbers, and carrier details, permit tax audits, and provide requested compliance information. Some reported data is exempt from public disclosure; regulators can adopt implementation rules, and violations can bring license action or fines up to $5,000.

Delaware households gain limited winery ordering

Beginning 365 days after enactment, licensed farm wineries and qualifying wine manufacturers can ship wine for Delaware households. The producer cannot have a licensed Delaware importer or wholesaler. Each shipper is limited to 3 nine-liter cases per household per calendar year; the household needs someone age 21 or older. Wine must be for personal use, not resale, and licensed carriers must deliver it through Delaware off-premises retailers—not residents' homes. The statewide annual cap is 1,800 nine-liter cases; a shipper exceeding it faces license cancellation and must seek a supplier license.

Wine carriers face checks and penalties

Wine carriers need a Delaware license and required transport permit, and may carry wine only for licensed direct shippers. They must scan and retain state-issued identification, train employees and contractors through approved age-check training, and check shipper licenses annually. Packages must clearly say they contain alcohol and require a recipient age 21 or older; compliant carriers have age-check-related legal defenses. Carriers must report shipment parties and tracking details monthly to alcohol regulators and tax officials; some reported data is exempt from public disclosure. After 3 or more violations, carriers receive a hearing and face license suspension or cancellation and fines up to $5,000; unpaid fines trigger suspension. Skipping a required identification request carries a $250–$500 first-offense fine, plus costs; nonpayment can mean up to 10 days in jail.

Sponsors & Cosponsors

Sponsor

Michael F. Smith
Republican • House

Cosponsors

Daniel B. Short
Republican • House
Ronald E. Gray
Republican • House
Stephanie L. Hansen
Democratic • Senate
Gerald W. Hocker
Republican • Senate
Russell Huxtable
Democratic • Senate
Kimberly Williams
Democratic • House
S. Elizabeth Lockman
Democratic • Senate
Melissa Minor-Brown
Democratic • House
Brian Pettyjohn
Republican • Senate
Marie Pinkney
Democratic • Senate
Nicole Poore
Democratic • Senate
Jeffrey N. Spiegelman
Republican • House
John "Jack" Walsh
Democratic • Senate
David L. Wilson
Republican • Senate
Lyndon D. Yearick
Republican • House

Roll Call Votes

All Roll Calls

Yes: 58 • No: 3

Senate vote • 7/1/2025

Passed (3/5 required)

Yes: 21 • No: 0

House vote • 6/30/2025