Shipping wine to Mississippi

fedxdog

Freshman
Dec 7, 2008
530
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is going to be taxed at 15.5%. Shipping is expensive (up to $60/case...$5/bottle). I don't see this changing much, though a few will try. With the turmoil in the wine industry today (less sold and high costs... and too much expansion in the last 10 years). The only real value wines are from outside the US, and they don't ship directly to you.
Just don't see a win/win in this move.
 

horshack.sixpack

All-American
Oct 30, 2012
11,363
8,272
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is going to be taxed at 15.5%. Shipping is expensive (up to $60/case...$5/bottle). I don't see this changing much, though a few will try. With the turmoil in the wine industry today (less sold and high costs... and too much expansion in the last 10 years). The only real value wines are from outside the US, and they don't ship directly to you.
Just don't see a win/win in this move.
How do other states handle it? Not tax it at a very high rate? I assume shipping is about the same for all, but I'll not be arguing any shipping points with you!
 

johnson86-1

All-Conference
Aug 22, 2012
14,334
4,838
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is going to be taxed at 15.5%. Shipping is expensive (up to $60/case...$5/bottle). I don't see this changing much, though a few will try. With the turmoil in the wine industry today (less sold and high costs... and too much expansion in the last 10 years). The only real value wines are from outside the US, and they don't ship directly to you.
Just don't see a win/win in this move.
I don't know off hand, but I suspect that 15.5% is not going to be more than the combined sales tax at the package store, the wholesale tax on wine in Mississippi, and the markup the ABC warehouse puts on it?

ETA: Very brief internet search indicates ABC marks up wine 27.5%, plus you have a $0.35 per gallon excise tax, then you have the 7% sales tax at the store.

Ignoring the excise tax and assuming you pay a 33% market up at the local package store or for buying direct, for a bottle that ABC buys for $15, you will pay $27.22. If you buy direct and pay a 33% markup on the wholesale price from the distributor, even with a $5 adder for the shipping, you end up paying $27.94.

Have no clue how realistic the 33% markup is (I just pulled that from an internet search), but if that is roughly correct it looks like it will be cost competitive for moderately priced bottles of wine.
 
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horshack.sixpack

All-American
Oct 30, 2012
11,363
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I don't know off hand, but I suspect that 15.5% is not going to be more than the combined sales tax at the package store, the wholesale tax on wine in Mississippi, and the markup the ABC warehouse puts on it?
Copilot says:

In Mississippi, the Alcoholic Beverage Control (ABC) levies an excise tax on wine at a rate of **35 cents per gallon**(https://www.dor.ms.gov/abc/tobacco-beer-and-alcohol-faqs). Additionally, there is a **27.5% markup** on the wholesale purchase of all alcoholic beverages(https://www.dor.ms.gov/abc/tobacco-beer-and-alcohol-faqs).
 

ronpolk

All-Conference
May 6, 2009
9,156
4,760
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is going to be taxed at 15.5%. Shipping is expensive (up to $60/case...$5/bottle). I don't see this changing much, though a few will try. With the turmoil in the wine industry today (less sold and high costs... and too much expansion in the last 10 years). The only real value wines are from outside the US, and they don't ship directly to you.
Just don't see a win/win in this move.
I’m ok with something like this being taxed at a high rate. This is not a necessity to anyone. It’s a luxury.

Coming from Florida, a state with no income tax, if MS wants to do away with income tax you better get ready for higher taxes in other areas like this. But I like this better. Tax consumption not income.
 

horshack.sixpack

All-American
Oct 30, 2012
11,363
8,272
113
I’m ok with something like this being taxed at a high rate. This is not a necessity to anyone. It’s a luxury.

Coming from Florida, a state with no income tax, if MS wants to do away with income tax you better get ready for higher taxes in other areas like this. But I like this better. Tax consumption not income.
^^^doesn't have teenagers...
 

greenbean.sixpack

All-American
Oct 6, 2012
8,816
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The only real value wines are from outside the US, and they don't ship directly to you.
We were in Germany about 7 years ago. On the winery tours we went on, they shipped directly to residences in the states (where it is legal). They knew they couldn't ship directly to the 'Sip.