Big Wine Discounts Headed For Court?

New Hampshire aggressively targets out of state wine buyers with a super-low tax that reduces prices enough so that residents of neighboring states flock there to make purchases. This summer the state is running a campaign called “No Taxation on Our Libations,” and offering such high discounts that retailers in Maine say their business is suffering. A quick trip over the state line results in a discount of up to 13 percent. Since the program began in early August, 40,000 consumers from 46 states have used the state’s online coupons to purchase wine and spirits. Attorneys quoted in Wine-Searcher, a publication for oenophiles, say New Hampshire’s plan may be legal but it smacks of unfair competition. About half of New Hampshire’s liquor store sales are made by out of state buyers, and there have been accusations that some of the wine is being resold at a profit, which amounts to bootlegging. “When people buy the product in New Hampshire, as long as they fall under the maximum (20 gallon) purchase threshold, they aren’t breaking any law,” says New Hampshire Liquor Commission Chairman Joseph Mollica.