The Teaching Notes provide suggested solutions to the case requirements and instructional discussion points.
We begin with a primer on the taxation of direct shipment of wine to out-of-state customers. Although we believe the case background provides sufficient information for students to complete the assignment, additional information may be helpful for instructors. Wine can be subject to both sales and excise tax, contingent on nexus rules. States may apply their general sales tax rate or have a special rate(s) for alcohol or wine. Some states have different rates for alcohol that is consumed on premises (not applicable for this case) or purchased retail. Excise tax is imposed per liter (a standard bottle of wine is 750 milliliters) or gallon (a standard bottle of wine is 0.2031 gallons). Excise tax rates often vary by alcohol by volume (ABV) with higher rates on higher ABVs. The combination of sales and excise tax...
