For nearly a century since the end of Prohibition, New York’s wine lovers have faced restrictions on receiving shipments from out-of-state wine retailers. While wineries, cideries, and distilleries across the country can send their products to New York consumers, out-of-state wine merchants remain blocked. However, new legislation introduced in 2025, Senate Bill 1700 and Assembly Bill 556, seeks to change that. If passed, these bills would allow New Yorkers to access a wider selection of wines from national retailers, opening new market opportunities for both consumers and businesses. The USA Wine Ratings dives deep into this legislation, which represents a significant shift in the way wine is sold and distributed in one of the nation’s largest markets.

Understanding Senate Bill 1700 and Assembly Bill 556

The proposed legislation, backed by the National Association of Wine Retailers (NAWR) and key players in the New York wine industry, aims to eliminate the longstanding ban on direct-to-consumer wine shipments from out-of-state retailers. Currently, New York’s laws prevent consumers from ordering wine from retailers outside the state, limiting their access to rare and premium selections.

The new bills propose a simple but effective solution: allowing licensed out-of-state retailers to ship directly to New York residents while adhering to state tax and regulatory requirements. This approach would create a more equitable marketplace, benefiting both retailers and wine enthusiasts.

Image: A package of Chardonnay delivered from Chateau Montelena

The Business Impact for Wine Retailers

Expanded Market Access: New York is a major market for wine sales, with one of the largest consumer bases in the country. If this bill passes, out-of-state wine retailers will have direct access to millions of potential customers eager for unique, hard-to-find wines.

Increased Revenue Opportunities: By tapping into New York’s wine demand, retailers can boost sales and grow their business. This law would provide collectors and connoisseurs, who previously faced barriers to purchasing from out-of-state sources, with the opportunity to sell premium, aged, and rare wines.

Also read: Exploring the World of Unique Wines: A Conversation with Igor Ivanov of Vinous Reverie

Leveling the Playing Field: Currently, New York wineries can ship their products to consumers both in and out of state, while national wine retailers are restricted. By allowing interstate retailer-to-consumer shipments, the law would create fairer competition and encourage a more dynamic wine market.

How the Legislation Would Work

Under the proposed framework, out-of-state retailers seeking to ship wine to New York would be required to obtain a permit from the New York State Liquor Authority, collect and remit sales tax on shipments, and comply with the state's regulatory and legal jurisdiction. Additionally, they would need to submit regular reports on shipments and ensure that deliveries are received with an adult signature from someone 21 or older. These measures mirror existing laws that govern wine shipments from out-of-state wineries, demonstrating that a functional regulatory structure is already in place.

Image: Wine boxes ready for shipping at Fine Wines Direct’s warehouse

The Legal and Economic Justifications

A key driver behind this bill is the Supreme Court’s 2019 ruling in Tennessee Wine v. Thomas, which struck down state laws that unfairly discriminated against out-of-state wine businesses. The ruling reaffirmed that states cannot favor in-state economic interests over out-of-state retailers without a compelling justification.

Additionally, opening up direct shipments would generate significant tax revenue for New York. Currently, when a consumer cannot purchase a specific wine locally and is barred from ordering from an out-of-state retailer, the state misses out on potential sales tax revenue. By legalizing direct shipments, the state could capture additional tax income from these transactions.

Industry Support and Opposition

The NAWR, independent fine wine retailers, and a coalition of New York wine merchants strongly support the legislation, arguing that it will modernize the wine marketplace and empower consumers with greater choice. Wine enthusiasts, collectors, and sommeliers have also expressed enthusiasm for broader access to wines unavailable in New York stores.

However, some wholesalers and distributors have historically opposed such measures, citing concerns about potential disruptions to the traditional three-tier system of alcohol distribution. Despite this, the bill’s sponsors emphasize that the law does not alter or dismantle the three-tier system but rather complements it by giving consumers more options.

Also read: Master Sommelier Peter Granoff on Curating Exceptional Wines and the Future of Fine Wine Retail

What This Means for Wine Retailers Nationwide

If passed, this legislation could set a precedent for other states still imposing restrictive direct-shipping laws. Retailers across the country could see similar regulatory shifts, making it easier to serve customers across state lines without unnecessary hurdles.

For wine retailers looking to expand, preparing for potential regulatory changes in New York is a strategic move. Those who obtain the necessary permits early and establish compliance systems will be positioned to take full advantage of this new sales channel.

Conclusion

Ultimately, Senate Bill 1700 and Assembly Bill 556 present a pivotal opportunity to modernize New York’s wine market, fostering greater competition, expanding consumer choice, and increasing tax revenue. For retailers, staying informed on the bill’s progress and understanding compliance requirements will be essential in seizing this potential. If passed, the legislation could be a transformative step for direct-to-consumer wine sales, opening new avenues for businesses and consumers alike. As the discussion continues, wine retailers should remain engaged, anticipating changes that could redefine the landscape of interstate wine shipping in the U.S.

Header image sourced from Astor Wines & Spirits

Related Links
Understanding the New TTB Rule on Wine Container Sizes: What It Means for the Industry
Sam Filler: Leading NY's Wine & Grape Excellence