Sen. Walter Michel said he’s heard from numerous constituents who are happy to be able to order from out-of-state boutique wineries.
One constituent told him about visiting a winery in Michigan, while another mentioned visiting a winery in Virginia.
Both constituents, he said, were pleased by his efforts to get a bill passed so Mississippians can buy from an out-of-state, boutique winery that obtains a permit with the state, that started on July 1.
The 2025 legislative session was the eighth try for Michel, who represents District 25 that includes Hinds and Madison counties, at getting the bill passed.
The Mississippi law is nothing groundbreaking. Forty-seven other states are set up for sales by out-of-state wineries, Michel said.
Mississippi law requires a winery to purchase a wholesaler’s permit for $100 from the Alcohol Beverage Control division of the Mississippi Department of Revenue.
“That’s how we sign them up to collect taxes on the transaction,” Michel said. “The tax on a bottle of wine will be 15.5 percent, which is double what the grocery tax is.”
The law only covers wines not sold at package stores in the state and allows an individual to order 12 cases of specialty wine per year.
Michel said the wines ordered will cost “$70, $80 and $100” and upward per bottle compared to the No.1 bestselling wine in the state, which is a $6 bottle named MD, better known as Mad Dog.
National trade associations related to wineries is alerting them they can ship to Mississippi, provided each purchase the permit, he said.
Michel said a constituent told him about bringing the new law to the attention of the management of the winery he visited.
Mississippi is an alcohol-control state, which means the wine and liquor sold in the state goes through the Alcohol Beverage Control warehouse in Gluckstadt and is transported to package stores based on their orders.
“The ABC warehouse has limitations on how much inventory it can hold,” Michel said. “With this new law, we don’t have to inventory the wine that is ordered and don’t have to take it from the warehouse and drive it to Tupelo or Biloxi, wherever the liquor store may be that ordered it.”
Wine takes up 60 percent of the floor space at the ABC warehouse but accounts for only 40 percent of the revenue generated, he said. Any bottles of alcohol that happen to get dropped at the warehouse are a loss for the state, he said.
“What we have with this new law is we can tax a $125 bottle of wine at 15.5 percent and not have to inventory it.”
According to the Wines Vines Analytics Winery Database, the United States is now home to 11,691 wineries, which is nearly 400 more than in 2021 and 1,215 more than in 2020.
There are wineries in all 50 states, with California and Oregon having the largest numbers of them.
In 2022, 49 percent of all U.S. wineries fell into the “limited production” category, making fewer than 1,000 cases, while 33 percent are classified in the database as “very small,” producing fewer than 5,000 cases, according to the Wines Vines Analytics Winery Database. Combined, the two categories accounted for 82 percent of all U.S. wineries in 2022.
In 2022, the lobbying group Wine America released a report that stated the industry generates $276 billion in total economic activity by employing more than 1 million people, generating more than $95 billion in direct and indirect wages and nearly $23 billion in tax revenue.
Richie Peaster, co-owner of Madison Cellars in Madison, said he doesn’t expect the new law to have an impact on local stores.
He realizes many people travel to Napa Valley in California, the Finger Lakes in New York and the Hill Country in Texas and visit wineries, find a wine they like and want to order it when they return home.
However he fears the ease of direct order could keep the ABC warehouse from stocking new wines and that may hurt consumers who want choices.
Peaster is most concerned the bill that passed is a precursor to other bills such as liquor sales on Sunday and the sale of liquor at grocery stores, which could be harmful to locally owned, small businesses.
Liquor stores in the state provide job opportunities for many people, he said, and that shouldn’t be overlooked.
