HB 1340 Summary

• Amends North Dakota Century Code section 5-01-17 to modify domestic winery license requirements and sales provisions.

• Establishes escalating percentages of North Dakota-grown ingredients required by volume over time: 10% in year 2, 20% in year 3, 30% in year 4, 40% in year 5, and 51% in year 6 and beyond.

• Allows domestic wineries to sell up to 25,000 gallons per calendar year directly to consumers and permits direct shipment of wine to persons inside or outside the state consistent with local laws.

• Permits domestic wineries to sell wine directly to wholesalers or retail licensees in North Dakota, requiring monthly reporting to the state tax commissioner when sales are made to wholesalers.

• Requires domestic wineries to report and pay annual wholesaler taxes on all wines sold at retail and direct to retail, with reports due January 15 following the year sales were made.