Draft legislation by Gov. Ed Rendell would allow consumers to order wine directly from both out-of-state and in-state wineries, but impose an 18 percent tax on those shipments.
Currently, consumers pay the tax on purchases in state liquor stores, but not on wine shipped directly from Pennsylvania wineries.
Pennsylvania currently bars direct shipments from out-of-state wineries, but the state is reworking regulations in the wake of last year's decision by the U.S. Supreme Court that said states could not treat in-state and out-of-state wineries differently. It is unclear how many out-of-state wineries may have begun shipping directly to Pennsylvania consumers following the high court ruling.
The 18 percent tax, known as the Johnstown Flood tax because it was enacted in the 1930s to help rebuild the city, is in addition to the 6 percent state sales tax.
Mr. Rendell sent his proposal to lawmakers earlier this week, but final legislation may not be ready until the fall.
A spokesman for the Pennsylvania Wine Association yesterday called the governor's proposal "a move in the right direction."
"We are very happy to see the governor is trying to understand the reality of life for wineries in Pennsylvania," said Francis X. O'Brien, an attorney and lobbyist representing the association.
Some winery owners had feared that the state would ban all direct shipments as a way to comply with the Supreme Court's equal treatment ruling. Indeed, the state Liquor Control Board ordered in-state wineries to stop direct shipments last November, but the ban quickly was lifted by Commonwealth Court under a temporary restraining order.
Although the governor's plan would sanction direct wine shipments to consumers, wineries would no longer be able to sell directly to restaurants, a blow to both the restaurant and wine industry.
Mr. O'Brien said the wine association was "concerned" about any loss of sales but hasn't been able to call a board meeting yet to issue a detailed response.
"Everyone is running crazy in the vineyards," he said.
In a concession to restaurants, Mr. Rendell's plan would allow restaurants to begin selling takeout wine, up to two bottles per customer.
"We think this is a fair compromise," the governor's spokeswoman, Kate Philips, said.
The provision would apply to restaurants and taverns that derive at least 50 percent of their sales from food.