Wisconsin Administrative Code
Department of Revenue
Chapter Tax 8 - Intoxicating Liquors
Section Tax 8.05 - Small winery cooperative wholesalers
Universal Citation: WI Admin Code ยง Tax 8.05
Current through February 26, 2024
(1) PURPOSE. The purpose of this section is to set forth the requirements for the creation and operation of small winery cooperative wholesalers, under s. 125.545, Stats.
(2) DEFINITIONS. In this section, and in s. 125.545, Stats.:
(a) "Member" has the meaning given in
s.
125.545(1)
(a), Stats.
(b) "Out-of-state winery" has the meaning
given in s.
125.545(1)
(b), Stats.
(c) "Purchase on consignment" means to
receive, purchase or acquire wine from a member of the small winery cooperative
wholesaler for cash or credit for a period of not more than 90 days.
(d) "Retailer" has the meaning given in s.
125.545(1)
(c), Stats.
(e) "Small winery" has the meaning given in
s.
125.545(1)
(d), Stats.
(f) "Small winery cooperative wholesaler" has
the meaning given in s.
125.545(1)
(e), Stats.
(g) "Wisconsin winery" has the meaning given
in s.
125.545(1)
(f), Stats.
(3) CREATION OF SMALL WINERY COOPERATIVE WHOLESALERS.
(a) Three or more individuals, at
least one of whom must be a Wisconsin resident and all of which must be owners
of small wineries certified by the department under s.
125.545(6)
(a), Stats., may, with a wholesaler's permit
issued under s.
125.54,
Stats., operate in Wisconsin as a small winery cooperative
wholesaler.
(b) The application for
the wholesaler's permit required under par. (a) shall be filed on the Wisconsin
liquor-wine permit application, form AB-115, and shall be submitted to the
department within 7 days after the cooperative's articles of incorporation are
filed with the department of financial institutions, under the provisions of
ch. 185, Stats.
Note: Form AB-115 may be obtained by writing to: Wisconsin Department of Revenue, PO Box 8900, Madison, WI 53708-8900.
(c) The agent and principal office of a
cooperative wholesaler shall be in Wisconsin.
(d) To provide greater public convenience and
service to all areas of Wisconsin, when making a determination on an
application for a wholesaler's permit filed under par. (b), the department
shall consider the ability of the cooperative to effectively serve its members
and Wisconsin retailers, as indicated by the location of the principal office,
the location of the participating wineries, the location of any warehouse or
storage facility, requirements for membership as detailed in its bylaws, and
any other relevant factors.
(e) The
department may not issue a new wholesaler's permit to a cooperative wholesaler
before October 1, 2008 or after December 31, 2008, and shall make a
determination on an application for a wholesaler's permit in accordance with
the requirements of s.
Tax
8.61.
(4) AUTHORIZED ACTIVITIES OF SMALL WINERY COOPERATIVE WHOLESALERS.
(a) A cooperative
wholesaler may sell, market and distribute wine manufactured, blended, or
mixed, and bottled by the members of the cooperative wholesaler.
(b) Within 21 days after filing the articles
of incorporation, the cooperative wholesaler shall adopt bylaws and file a copy
of the articles and bylaws with the department. The bylaws shall contain all of
the following information:
1. Reasonable
membership requirements that recognize the cooperative wholesaler's duty to
negotiate in good faith with wineries that seek to sell products and to
diligently ensure that distribution channels are available for the sale of wine
from small wineries.
2. A statement
that any applicants meeting such requirements be admitted into the
cooperative.
3. A description of
the rights and responsibilities of members.
4. The process for the election of the board
of directors.
5. The plans for a
membership meeting.
6. Whether the
cooperative will allow non-members to purchase preferred stock.
(c) A cooperative wholesaler is
permitted to purchase wine industry trade goods, including bottles, corks, and
other supplies consumed in the bottling and sale of wine, and marketing
materials and services, including signs, menu boards, and clothing such as caps
and t-shirts. The trade goods may not include any alcohol beverages.
(d) A cooperative wholesaler may provide
compensation for reasonable expenses of winery owners and employees, acting as
volunteers in the sale and distribution of wine by the cooperative. Reasonable
expenses may not include compensation for time spent acting as a
volunteer.
(e)
1. The cooperative wholesaler shall provide
the department with a biennial report with its application for wholesaler
permit renewal. The biennial report shall summarize the sales quantity and
product data for all wine and wine industry trade goods sold by the cooperative
wholesaler.
2. The department will
send a renewal notice to the cooperative wholesaler prior to the time the
wholesaler permit reaches its expiration date.
Disclaimer: These regulations may not be the most recent version. Wisconsin may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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