Corinna Wang
April 6, 2021 | New Features | Corinna Wang

Now: Temecula Valley Wine & Agricultural Heritage District Assessment Levy

If your winery is within the Temecula Valley Wine & Agricultural Heritage District (TVWAHD), you may have heard that on April 1, 2021 a hybrid tax was implemented for all wineries in the region. This five year term stipulates that 1% of all gross sales be funnelled into advertising for the valley.

The good news is that lead trainer, Ben Kraemer, has created a video detailing everything you need to know about the change and your WineDirect setup. Watch the video below:


If you intend to pass this assessment on to your customers, you should retroactively collect it starting April 1, 2021. The amount of assessment, if passed on to each customer, shall be disclosed in advance and be separately stated from the amount charged and any other applicable taxes, and each customer shall receive a receipt for payment from the business. Please identify this assessment as the “TVWAHD Assmt” in a separate line item on the customer’s receipt. In order to disclose the fee in advance, a simple note of “All sales are subject to a 1% Temecula Valley Wine & Agricultural Heritage District fee” should either be printed on tasting menus and/or restaurant menus or on a sign at the register.

Additionally, it must be disclosed in any special events and wedding estimates and contracts. Please note that if a customer refuses to pay the assessment, your business is still liable for paying it.

We've also created some FAQs to help your migrate through this change:


1) What should we call the assessment on the sales receipt?
Per the District’s Management Plan, the assessment will be called “TVWAHD Assmt.”

2) The 1% assessment is charged on gross sales revenue. What does that include?
All direct to consumer sales of for wine, wine club shipments (whether shipped or picked up), ticket sales, tasting fees, tours and private and public special events, merchandise, prepared foods for on-premise or off-premise consumption (whether sold in a tasting room or a stand-alone restaurant on-premise), orders placed via telemarketing, telephone, online, email, whether carried out at the time of purchase, shipped or picked up at a later date (pre-sales). Gross sales revenue shall not include any federal, state or local taxes collected, including but not limited to sales and use taxes.

3) Does the assessment apply to any non-taxable items? (e.g. Shipping, Gratuity, Non-taxable pre-packaged food, etc.?)
No, it only applies to items that you would charge California sales tax on.

4) Would refunded transactions refund the assessment fee previously collected on the order?
Yes, just as you would refund sales tax, you would also refund any assessment collected.

5) Are fees collected for wholesale transactions?
No, there are no assessments collected on wholesale transactions.

6) Our tasting fee includes sales tax and we “back out” the sales tax when it comes time to pay the state. Can we include the assessment in the tasting fee as well and use the same procedure?
Yes, you can, however, it is highly recommended that you line item both the sales tax and the assessment separately, as it will make your accounting much easier and will lessen questions from customers if they see other wineries charging both the tax and assessment and you’re not. In doing a bit of research, many of the wineries in the area do charge sales tax on their tastings as a separate line item.


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