Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund	Potential sales tax revenue and/or excise tax revenue increase
State Expenditures General Fund	Potential enforcement/investigation cost increase
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: TABOR
Effective Date: 90 days after adjournment unless a referendum petition is filed.
Appropriation Summary for FY 1999-2000: None
Local Government Impact: May increase local sales tax revenue in those areas where licensed wineries are located.

This bill allows any licensee manufacturing wine located in a state with reciprocal privileges with Colorado to make interstate wine shipments into Colorado for orders placed by mail, fax, telephone, e-mail, or other means of electronic communication. The bill also allows a limited winery licensee located in Colorado to sell wine manufactured by other Colorado limited wineries including orders placed by mail, fax, telephone, e-mail, or other means of electronic communications.

Current law allows certain interstate and intrastate shipments of wine to consumers if the order is placed by the consumer in person at the licensed premises of the licensee. Delivery of such interstate wine shipments into Colorado are not deemed to constitute a sale in this state, therefore, no sales tax or excise tax is assessed. Intrastate wine shipments are subject to state and local sales and/or excise taxes.

The provisions of this bill may increase the amount of wine sales by out-of-state and in-state licensees to consumers in Colorado. This fiscal note assumes that in-state licensees will continue to collect appropriate sales and/or excise taxes; while the out-of-state sales would continue to be exempt from sales and/or excise taxes.

Based upon reports from other states that have passed similar laws, the Department of Revenue believes the provisions of this bill may increase the number of complaints filed for the alleged sale of alcoholic beverages to minors. The department indicates that efforts conducted by other states to determine compliance rates have found a high level of violation by out-of-state shippers. The Division of Liquor Enforcement would be required to investigate any and all such complaints registered in the state.

The division will be able to absorb the costs for up to 70 such investigations per year. Those operating costs include travel expenses, investigative equipment, personal services, and legal services. In the event 70 or more such complaints are filed during FY 1999-2000, the division will identify any additional resource requirements at that time.

The provisions of this bill may increase local sales tax revenue in any areas where licensed wineries are located.

This fiscal note would imply no new state appropriations are required for FY 1999-2000.