Wine Preserve (BID) Implementation and FAQ
POS System Setup Guides & Best Practices
We are excited to start working with you on the
Wine Preserve (BID)!
We know you have more questions. We have compiled as many of them in this section.
If you still have questions after reading this section, please feel free to reach out to us. For POS setup, e-mail Mary Lynn HERE. Any other questions, reach out to Phil Carpenter HERE.
With that in mind, here are some answers!
When should my winery start collecting the Wine Preserve fee of 1% on all retail sales from my winery?
April 1, 2025
When do I have to pay that money?
Quarterly. The Wine Preserve (BID) assessment starts on April 1, 2025. The first quarter is April – June. The first quarterly payments will be made in July, 2025.
Who do I pay?
The County is contracting with a third-party collections agency called HdL to collect the Wine Preserve (BID) fee. HdL is the same agency that collects taxes for the state. Part of why they were chosen by the County as the collections firm is they have access to tax data and can assure the County that all vintners are paying into the assessment accurately. They are able to audit your payments against your confidential tax data. Your payments will be equal to 1% of your CA retails sales.
HdL will collect payments quarterly in the month after the close of each quarter. You will have 30 days to pay. The first quarter starts on April 1, 2025 and ends on June 30, 2025. Payments will be made in July 2025. The Owners Association will receive the first BID payments in August.
Over the next three months, HdL will be confirming your contact data and will be in touch as to where to send the payments once the first quarter closes the end of June, 2025. They are working to make various payment options available to the wineries and we will be following up on this with you, as well. We will assist them in building an accurate database.
I’m having trouble with my POS system integration. What do I do?
We have a webpage with information on many POS systems. We have also hired a part-time consultant, Mary Lynn Harms-Romo to assist with implementation. Please check out this link for DIY solutions. If you are stuck, please email Mary Lynn at: marylynnloveswine@gmail.com and she will help you! If you have expenses implementing your new systems, please let us know. We will help cover one-time implementation costs.
Do I have to include the assessment on my receipt?
No, you do not. If you prefer, you may include the assessment in the prices of your products by raising them 1%. The advantage of this choice is that the assessment is automatically taxed.
I’d prefer to pass the assessment along to the consumer. What do I need to know?
You may pass the assessment on to the consumer by separating it out as an item on the receipt referred to as the “Wine Preserve.” You must also disclose the assessment to them prior to the purchase. You may do so by listing on your website, your tasting menu, or a plaque by your cash register.
Is the assessment taxable?
Yes, it’s important to clarify that the Wine Preserve fee itself is not a tax, but rather a fee that is taxed. The California Department of Tax and Fee Administration (CDTFA) has determined that sales tax applies to the revenue generated from Business Improvement District (BID) assessments when they are collected on taxable retail sales. This means that the 1% Wine Preserve Fee is subject to sales tax because it is assessed on gross retail sales, including taxable items such as wine and merchandise. This aligns with how other BID fees are treated under state tax regulations.
Do you have any suggested language for the disclosure of the assessment.
We suggest the following: “The Santa Barbara County Wine Preserve is a taxable 1% assessment added to all California orders which funds the promotion and protection of our world-class wine region.”
DECIDE HOW YOU WILL HANDLE THE FEE
Absorbing vs. Passing on the Fee:
If absorbed, the winery pays the BID fee from its operational costs.
If passed on to the consumer through the price of the item. Integrate the fee into the price of the retail item by adding 1% to the price of the item.
For the above options, you would calculate one percent of your taxable sales and that is the amount that you would pay for the fee when your BID payment is due.
If passed on to the consumer as an additional line item.
- Add 1% to all taxable retail sales in California. See additional processes below.
POS SYSTEM SETUP & CONFIGURATION
Ensure your Point of Sale (POS) system is set up if you are passing the fee onto the consumer. Some systems may be able to do this automatically, some may need to be manually added. LINK to resources page for most popular POS resources (ML will gather)
Label the Fee Clearly – name the line item:
“Santa Barbara County Wine Preserve”
“SBC Wine Preserve”
“SBCWP” (if character limits apply)
Fee Collection – Configure your POS system to automatically apply the 1% fee on all taxable gross retail sales, or configure it manually.
Test Before Going Live – Run test transactions to confirm the fee is applied correctly and appears on receipts, or in the cart.
STAFF TRAINING & INTERNAL COMMUNICATION
Educate Your Team – Provide staff with a simple, positive explanation of the BID fee:
“The 1% fee helps fund marketing efforts that attract visitors and boost wine sales for our winery and others in the region.”
Train on Customer FAQs – Prepare staff for common customer questions, such as:
“Is this a tax?” → “No, this is a business fee that directly benefits local wineries.”
“Can I opt out?” → “All wineries within the district participate in this initiative to promote Santa Barbara County wines.”
Encourage Positive Messaging – Frame it as an investment in the wine community, reinforcing that it supports marketing, events, and tourism promotion.
CUSTOMER COMMUNICATION & DISCLOSURE REQUIREMENTS
Required Disclosure – If the fee is passed on to customers, it must be disclosed in advance. The disclosure can be placed:
On a placard or sign in the tasting room (links to flyers below)
On tasting room menus, event flyers, and restaurant menus
In the footer of your website or in the checkout/cart
On receipts, even if the customer declines the receipt
In wine club emails
Sample Disclosures & Printable Flyers
If the fee is passed on (Download Flyer Here):
“All retail sales subject to a 1% Santa Barbara County Wine Preserve fee.”If the fee is included in the retail price (Download Flyer Here):
“All retail sales include a 1% Santa Barbara County Wine Preserve fee.”
LEGAL & COMPLIANCE CONSIDERATIONS
Start Date – The 1% BID fee must begin being collected on April 1, 2025.
Initial Collection Schedule – Payments to the third-party collector (HdL) will be monthly for the first year, then likely shift to quarterly. Details to come.
Understand Fee Scope – The 1% BID applies to all Direct-to-Consumer (DTC) sales, including:
Wine sales (tasting room, online, phone orders)
Wine club shipments
Tasting fees, tours, and event tickets
Merchandise and prepared foods (if applicable)
Exempt Transactions – The BID does NOT apply to:
Wholesale wine sales
Out-of-state transactions
Contracts executed before April 1, 2025
Tax Implications – The California Department of Tax and Fee Administration (CDTFA) advises that sales tax applies to BID fees on taxable items.
Download Printable Documents
The Big Why:
The Santa Barbara County Wine Region is Southern California’s largest and fastest growing wine destination. Over the past 50 years, the wine industry has grown to over 300 licensed wineries/labels, more than 70 grape varieties, and has a vibrant culinary scene. Wine is the backbone of tourism in Santa Barbara County as evidenced by the extremely successful Direct-To-Consumer (DTC) business model used by virtually all of our wineries.
Starting just 90 miles north of Los Angeles, the Santa Barbara Wine Region is surrounded by more than 22 million people. We need to reach them, and Wine Business Improvement Districts are fast becoming the industry standard on how wine regions promote and protect their industry.
A Wine District is a sustainable, reliable, and significant form of funding for our industry paid for by the consumer. It removes association dues from wineries, allows wine regions to market competitively, funds industry education, and government engagement.
In 2019, the Santa Barbara Wine Region was a trailblazer, getting further in the process of forming a Wine District than any other region had before. Not wanting to be the first to attempt something so new, the effort was tabled.
Our world has changed dramatically in the past few years, and Wine Districts are successfully being implemented in other wine regions to attract visitors. Now is the time for us to pursue stable funding and providing longevity for our industry, or we risk lagging behind our competition when we should be surging ahead.
The talents of our winemakers, the unique geography of our region, and the high quality of our wines has been noticed. In 2021, Santa Barbara County was named the Wine Region of the Year by Wine Enthusiast Magazine. We raised over $750,000 through government grants and have proven how promotional funding helps our market. We have experienced a retail sales growth factor of almost 50% in the past five years, documented by the Santa Barbara County Auditor-Controller’s Office, the Santa Barbara Wine industry has been gaining momentum and is a significant player on the global stage. According to data from the California Wine Institute in 2023, Santa Barbara County’s wine industry has an economic impact of $1.7B, once wine customers dine at restaurants, stay in our lodging, and attend special events.
These successes are the result of individual efforts by wineries to promote themselves, as well as a collective effort to fund the Santa Barbara Vintners to promote and protect the region as a whole. The Santa Barbara County Vintners Association was incorporated as a nonprofit in 1984. The organization was formed to promote and protect the wine region through marketing, public events, and government advocacy. The organization is funded through membership dues and fundraising mechanisms such as special events (Vintners Festival) and state agricultural grants (CDFA). These funding methods are unpredictable and do not meet the ambitions of the industry. At this point, in order to build on the economic growth and international reputation the region has achieved, the association needs stable, significant funding to support the region in achieving its full potential. A Wine Business Improvement District offers such funding.
See below for a summary of the Santa Barbara County Wine Preserve. Please scroll down to the FAQ section for more details.
FAQ:
We Want to Address All of Your Questions and Concerns. Click on Questions Below for More Details.
What is a Wine Business Improvement District?
A Wine District is a geographically determined area (a “district”) that contributes stable funding to promote the wine industry within that area. The funding is generated through an assessment (fee) on the retail sale of wine.
For example, a 1% assessment on a $50 bottle of wine = $0.50.
These funds go to a nonprofit organization, usually the regional association, for the exclusive benefit of the industry — including marketing, advocacy, advertising, events, and special projects.
This is not a tax. Taxes fund government; a Wine District funds the wine industry directly. The fee legally must benefit the businesses that pay it and cannot be diverted to government use.
The assessment is generally passed on to the consumer. This model is how Visit Santa Barbara and Visit the Santa Ynez Valley are funded through hotel assessments.
Unlike a tax, the assessment is proposed and approved by the businesses who pay it, not the general public.
Do other wine regions have a Wine District?
Yes. Several regions have successfully implemented Wine Districts:
- Temecula Valley — 1% assessment, $1.7M collected in 2022; budget tripled.
- Livermore Valley — 2% assessment, $700k collected in 2022; budget doubled.
- Paso Robles — pursuing
- Monterey County — pursuing
- Mendocino County — pursuing
- Amador County — pursuing
Wine Districts are becoming the industry standard for how regions fund competitive marketing and protection efforts.
What businesses would have to pay the Wine District fee?
All wineries in the Santa Barbara County wine region will pay the assessment fee whether they are currently association members or not.
All participating wineries benefit from the collective marketing and advocacy work funded by the District.
What would the assessment fee be and what sales would be included?
The assessment fee would be 1% on all Direct-to-Consumer (DTC) transactions within California, including:
- Wine
- Merchandise
- Wine club
- Events
- Food
- Any items shipped to California customers
The fee aligns with California sales tax categories, ensuring accurate reporting and auditing.
How much money would the Wine District generate for our industry?
The District is estimated to generate approximately $1.65 million annually, based on 2022 retail tax receipts.
This nearly doubles the Santa Barbara Vintners Association’s existing budget.
Who decides if this gets approved?
All winery owners in Santa Barbara County with DTC operations may sign the petition in favor of forming the Wine District.
Those not in favor simply do not sign.
Does everyone have an equal vote to establish a Wine District? What’s a weighted vote?
Votes are weighted based on a winery's percentage of total county-wide retail DTC sales.
This ensures that businesses contributing the most financially have a proportionate voice in formation decisions.
Example:
- Total industry retail sales: $165,000,000
- A winery’s retail sales: $100,000
- Weighted vote: 0.06%
Examples of Weighted Votes:
| Winery Annual Sales | Weighted Vote |
|---|---|
| $100,000 | 0.06% |
| $250,000 | 0.15% |
| $500,000 | 0.30% |
| $750,000 | 0.45% |
| $1,000,000 | 0.61% |
| $2,000,000 | 1.21% |
51% of total weighted value must support formation to proceed.
If the Wine District is approved, do the weightings remain the same?
No. Weighted voting is only used during formation (and potential dissolution).
Once established, all wineries get one vote each, regardless of size.
How will the Wine District be established?
The District will be established under California’s Property and Business Improvement District Law of 1994.
Process:
- Petitions submitted by DTC wineries
- Review by all cities within the district
- Final hearing and approval by the County Board of Supervisors
Civitas Advisors is assisting with the formation.
Will the assessment dissuade visitors from visiting tasting rooms?
No. Data from other wine districts shows increased visitation after implementation.
Temecula Valley saw an 18.7% increase in visitation from Sept 2022 to Sept 2023 (highest of any region tracked).
Since 2021, Temecula received only one consumer complaint about the fee.
Will I still have to pay association dues?
No. Winery membership dues are eliminated as soon as BID funds begin flowing (about four months after collections begin).
All wineries paying into the District automatically become voting members.
How is the fee collected and who is it sent to?
The 1% fee is collected at the point of sale similarly to sales tax.
POS systems add a line item for the Wine Preserve.
Payments are submitted to HdL, the third-party firm contracted to collect and manage BID funds.
Will this work with my POS system?
Yes. Major winery POS systems support BID fees:
- WineDirect — via “Handling Charge”
- ShipCompliant — built-in BID support
- Square — add as a line item
SBV staff will help with setup.
Who will decide how the money is spent?
A governing Board of Directors composed of small, medium, and large winery representatives will allocate funds.
What will the money be spent on?
All funds must directly benefit the wineries paying the assessment. Spending categories include:
- Marketing & consumer outreach
- Public relations & media
- Trade & consumer events
- Industry education
- Government engagement
- Community relations
The Management District Plan (MDP) outlines programs and budgets.
Once the Wine District is established, is it permanent?
No. The District lasts for five years.
Each year, wineries contributing 50% or more of assessments may petition during a 30-day window to dissolve the District.
Still have questions? Please feel free to send any questions to any of our Board Members or staff:
Santa Barbara County Vintners Association Board of Directors & Staff
Pierre LaBarge, President
LaBarge Winery
(2024-2026, Second Term)
2380 Sweeney Road
Lompoc, CA 93436
E-mail: Click Here
Phone: (805) 708-6159
Mobile: (805) 708-6159
Steve Gerbac, Vice President
Rusack
(2024-2026, Second Term)
1819 Ballard Canyon Road
Solvang, CA 93463
E-mail: Click Here
Phone: (805) 691-5109
Mobile: (805) 698-7318
Jason Djang, Secretary
Brave & Maiden Estate
(2024-2026, Second Term)
649 N Refugio Road,
Santa Ynez, CA 93460
E-mail: Click Here
Phone: (805) 693-2989
Mobile: (626) 833-7710
Dan Glaeser, Treasurer
CalPrivate Bank
(2025-2027, Second Term)
E-mail: Click Here
Phone: (310) 963-8731
Chase Carhartt
Carhartt Family Wines
(2024-2026, Second Term)
1541 Rancho Santa Ynez Road
Solvang, CA 93463
E-mail: Click Here
Phone: (805) 686-5107
Mobile: (805) 714-5619
Kevin Gleason
Refugio Ranch Vineyards
(2025-2027, Second Term)
3010 Roblar Avenue
Santa Ynez, CA 93460
E-mail: Click Here
Phone: (805) 686-2603
Mobile: (770) 335-6311
John H. Haan, Jr.
Rogers, Sheffield & Campbell, LLP
(2025-2027, Second Term)
427 E. Carrillo Street
Santa Barbara, CA 93101
E-mail: Click Here
Phone: (805) 568-4094
Keith Saarloos
Saarloos and Sons
(2025-2027, Second Term)
Po Box 185
Los Olivos, CA 93441
E-mail: Click Here
Phone: (805) 688-1200
Mobile: (562) 331-1193
Denise Shurtleff
Cambria Estate Winery
(2025-2027, Second Term)
5475 Chardonnay Lane
Santa Maria, CA 93454
E-mail: Click Here
Phone: (805) 938-7322
Mobile: (805) 478-9019
Amy Christine
Holus Bolus & The Joy Fantastic
(2024-2026, First Term)
2902 San Marcos Avenue, Suite B
Los Olivos, CA 93441
E-mail: Click Here
Phone: (805) 637-1005
Mobile: (323) 791-1209
Santa Barbara Vintners Staff
Alison Laslett, CEO
140 W. HWY 246, #1059
Buellton, CA 93427
E-mail: Click Here
Office: (805) 686-0881
Mobile: (310) 463-0262
Phil Carpenter
140 W. HWY 246, #1059
Buellton, CA 93427
E-mail: Click Here
Phone: (805) 688-0881
Mobile: (805) 697-6970
Mike Testa
Coastal Vineyard Care Associates
(2024-2026, First Term)
224 E. Hwy 246 suite a
Buellton, CA 93427
E-mail: Click Here
Phone: (805) 693-4720
Brooke Christian
Longoria Wines
(2024-2026, First Term)
415 E Chestnut Avenue
Lompoc, CA 93436
E-mail: Click Here
Phone: (805) 736-9700
Mobile: (202) 841-9898
Kristina Caruso
Chris Caruso Wines
3564 Sagunto St.
Santa Ynez, CA 93460
E-mail: Click Here
Mobile: (312) 952-9581
AJ Fairbanks
Crown Point Vineyards
1733 Fletcher Way
Santa Ynez, CA 93460
E-mail: Click Here
Phone: (805) 693-9300
Mobile: (805) 448-7511
Andrew Murray
Andrew Murray Vineyards
5249 Foxen Canyon Road,
Los Olivos, California 93441
E-mail: Click Here
Phone: (805) 686-9604
Mobile: (805) 245-1043