123rd MAINE LEGISLATURE
LD 1987 LR 3147(03)
An Act To Allow Direct-to-consumer Wine Sales
Fiscal Note for House Amendment "     " to Committee Amendment "A"
Sponsor: Rep. Patrick of Rumford
Fiscal Note Required: Yes
             
Fiscal Note
Potential current biennium revenue decrease - General Fund
Fiscal Detail and Notes
The General Fund revenue increase resulting from an increase in the number of shippers who register and remit sales tax is estimated to be $18,980 in fiscal year 2008-09.  
It is assumed that for sales of malt liquor, the amount of revenue received from the $100 registration fee would be offset by a loss of excise tax, resulting in a minor loss of General Fund revenue.  
It is unknown how many individuals would purchase spirits through the mail.  It is assumed it could be significant and result in an undetermined increase in General Fund revenues.  However, the sale of spirits through the mail could present certain contractual issues with Maine Beverage and could result in a potential significant cost to the General Fund which cannot be determined at this time.  The contract with Maine Beverage allows the company to receive a certain net profit and gross profit percentage per year.  If the State enacts any law which could affect these amounts, Maine Beverage could have recourse against the State.  In addition, the contract is based upon Maine's status as a control state, where all spirits come into a central warehouse and are then distributed to agency liquor stores.  Allowing the purchase of spirits through the mail could undermine this status.