On May 24th the Amador County Board of Supervisors approved an ordinance to officially establish the Amador County Wine Heritage District (ACWHD). This approval was the culmination of over two years of planning, discussion, communications and meetings with the region’s wineries and stakeholders. This is a very big step forward for our region, bringing together the region’s wineries as a significant economic engine and catalyst for regional tourism.

3.18.070 Assessments Ordinance.

A.    The annual assessment rate is one percent of gross direct-to-consumer sales revenue on winery sales. Based on the benefit received, assessments will not be collected on purchases made outside of the county of Amador. Revenue generated from the ACWHD is intended only to provide programs and services for assessed businesses, all of which are located in the county of Amador. Sales made outside of the ACWHD boundaries are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual winery businesses outside of the county of Amador.

So, what comes next? Now that the ACWHD is authorized we will take the following actions to get it in place:

  • File the necessary forms to establish the ACWHD as a legal entity, a 501-C6 non-profit, and all necessary documents to comply with federal and state law
  • Conduct elections for the new organization consistent with the by-laws and seat a new governing board.
  • Transition the existing Amador Vintner’s Association assets and liabilities to the new organization
  • Work with HdL, the County’s designated tax collection consultant, to finalize the assessment collection process and schedule
  • Work with every winery within the assessment boundary to implement the assessment collection within their organization and POS system.

We anticipate that this transition process will take approximately six months, based on the experience of other assessment districts, before assessment revenues begin to flow. In the meantime, the Vintners Association will continue to market the region and support their winery members as they have in the past.

It was a lot of work to secure the approval of significant majority the wineries and County to bring this vison to reality, but there is still significant work to be done to ensure a successful launch and implementation.

The assessment funds will provide the ability to consistently market our region’s wineries to raise awareness, attract new visitors and consumers, enhance signage and branding, support quality growth, and ultimately contribute to a healthy and sustainable wine and tourism industry in Amador County.

Click to Download Amador County Approved MDP – Management District Plan 

If you would like to participate as a volunteer or pursue a seat on the Heritage District Board, please contact Megan the AVA at Director@AmadorWine.com for more information.

 

Amador Wine Heritage District Top 10 Frequently Asked Questions (FAQ)

What is the Amador Wine Heritage District (AWHD)?

The AWHD is collective group of Wine Operations that utilize a 02 license and self assesses their operations at 1%.

How are those funds to be utilized?

Through a management plan that will direct how the funds must be spent and require an annual report detailing the budget and expense to be presented each year to the Amador County Board of Supervisors.

What is the Marketing Plan?

Click here to view proposed marketing plan.

Who will oversee the spending of those funds?

There will be the creation of a 501c 6 that will oversee the monies collected by the AHWD.

Will the Amador Vintners Association (AVA) still exist?

The AVA will cease to operate. The new 501c6 will take on all existing assets and liabilities of the AVA.

Will the new 501c6 operate like the AVA?

No, the creation of the new 501c6 will allow for new bylaws to be drafted to better reflect the rate payers of the AHWD.

Will there be requirements for those in the AWHD other than 1% of all sales?

No, by operating a winery in Amador County with a ABC operation 02 license you will be automatically assessed the 1%, all other current requirements of AVA membership will be voluntary in the future.

Will only wine sales be assessed?

Sales made outside of the ACWHD boundaries are not subject to assessment due to a lack of benefit, including those sales made to ship wine from assessed wineries within the ACWHD, as described below. Assessment dollars will not be spent on any programs or activities to benefit individual winery businesses outside of the County of Amador. Assessments shall only be levied on sales conducted within the boundaries of the ACWHD. Sales derived from wine shipping purchases, including but not limited to those made in relation to wine club memberships, out of state purchases, or purchases made by phone, shall not be subject to ACWHD assessment. For example, if an assessed winery owner travels outside of the state of California to sell wine from their ACWHD assessed business, such sales shall not be subject to assessment. However, if a customer from outside of the state travels to wineries assessed within the ACWHD and purchases wine, such sales shall be subject to assessment.

Can this be passed onto the customer and if so, how will the assessment be listed on the customer receipt?

Yes, the assessment is levied upon and a direct obligation of the assessed winery.  However, the assessed winery may, at its discretion, pass the assessment on to customers.  The amount of assessment, if passed on to each customer, shall be disclosed in advance and separately stated from the amount charged and any other applicable taxes, and each customer shall receive a receipt for payment from the business.  If the AWHD assessment is identified separately it shall be disclosed as the “AWHD Assessment.” The assessment is imposed solely upon and is the sole obligation of the assessed winery even if it is passed on to customers. 

Are there other areas in California that are doing this now?

Yes, Livermore Valley has 45 wineries and a 2% assessment on direct to consumer.  Additionally, Temecula started a new wine district in to include 1% assessment to all sales.

Does the district last forever?

No, the district once established will last for 5 years at which time it will need to be renewed in the same fashion as the formation of the district, by a majority of the assessment payers.