S.F. No. 3748 Summary

• Establishes the Minnesota Grape and Wine Council composed of 15 voting members representing wine producers, grape growers, industry associations, and government agencies to review and award grants for Minnesota wine promotion, education, and development.

• Creates the Minnesota Grape and Wine Account in the agricultural fund to receive dedicated wine tax revenues and appropriates money for council-approved grants, with annual audits required by June 1.

• Requires wineries to obtain a direct shipper license to ship wine directly to Minnesota consumers (maximum 2 cases per person annually) and imposes a $50 license fee with quarterly reporting requirements.

• Establishes sales and use tax nexus for direct shippers by including direct shipper license holders among retailers required to collect Minnesota sales and use taxes, effective June 30, 2018.

• Directs a portion of liquor gross receipts tax and sales tax revenues collected from direct shipper wine sales to the Minnesota Grape and Wine Account beginning August 1, 2018, with amounts based on estimated percentages of direct shipper sales starting August 1, 2019.