Tasting Rooms

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What are the steps for a Limited Winery License holder to set up a tasting room on site of winery?

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Tanya,

Your license allows you to give tastings on the premises. You may have to deal with local ordinances, however.

Here is the state law (current as of September 2016):

LIMITED WINERY LICENSES
Limited winery licenses can be held by any in state or
out-of-state winery that produces less than 200,000
gallons per year of alcoholic ciders, wines and
wine coolers. Licensees may sell their products to
individuals at retail on the licensed premises, to the
PLCB and to Brewery (G), Hotel (H), Restaurant (R),
Club (C), and Public Service Liquor (P) licensees.
Limited wineries may provide visitors on the licensed
premises with tastings of wine at no charge.

Qualifications for a Limited Winery (LK) License
An individual must be a citizen of the United States of
America or a resident alien.
8 Limited Winery Information Book
If a company or incorporated association of
individuals seeks a license, each and every one must
be a citizen of the U.S. or resident alien.
In the case of a corporation, each and every stockholder
must be a citizen of the U.S. or a resident alien.
Limited Winery Licenses in the Pennsylvania
Liquor Code
Limited Winery licenses are described in Section
505.2 of the Pennsylvania Liquor Code. The section
is copied verbatim below, with the lettering and
numbering of paragraphs intact for ease of reference.
47 P.S. § 5-505.2
(a) In the interest of promoting tourism and
recreational development in Pennsylvania, holders of
a limited winery license may:
(1) Produce alcoholic ciders, wines and wine
coolers, subject to the exceptions provided
under this section, only from an agricultural
commodity grown in Pennsylvania.
(2) Sell alcoholic cider, wine and wine coolers
produced by the limited winery or purchased
in bulk in bond from another Pennsylvania
limited winery on the licensed premises, under
such conditions and regulations as the board
may enforce, to the board, to individuals and
to brewery, hotel, restaurant, club and public
service liquor licensees, and to Pennsylvania
winery licensees: Provided, That a limited
winery shall not, in any calendar year, purchase
alcoholic cider or wine produced by other
limited wineries in an amount in excess of
fifty per centum of the alcoholic cider or wine
produced by the purchasing limited winery in
the preceding calendar year. In addition, the
Limited Winery Information Book 9
holder of a limited winery license may purchase
wine in bottles from another Pennsylvania
limited winery if these wines undergo a second
fermentation process. Such wine may be sold in
bottles bearing the purchasing limited winery’s
label or the producing limited winery’s label.
Such wines, if sold by the board, may be sold by
the producing limited winery to the purchasing
limited winery at a price lower than the price
charged by the board.
(3) Separately or in conjunction with other limited
wineries, sell alcoholic cider, wine and wine
coolers produced by the limited winery on no
more than five (5) board-approved locations
other than the licensed premises, with no
bottling or production requirement at those
additional board-approved locations and under
such conditions and regulations as the board
may enforce, to the board, to individuals and
to brewery, hotel, restaurant, club and public
service liquor licensees. If two or more limited
wineries apply to operate an additional boardapproved
location in conjunction with each
other, the wineries need only have one boardapproved
manager for the location, need only
pay one application fee and need not designate
specific or distinct areas for each winery’s
licensed area. Each limited winery must file
an application for such an additional boardapproved
location, and such location shall count
as one of the five permitted for each limited
winery. Each limited winery is responsible
for keeping only its own complete records. A
limited winery may be cited for a violation of
the recordkeeping requirements of sections 512
and 5131 pertaining to its own records only.
10 Limited Winery Information Book
(4) At the discretion of the board, obtain a special
permit to participate in alcoholic cider, wine
and food expositions off the licensed premises.
A special permit shall be issued upon proper
application and payment of a fee of thirty dollars
($30) per day for each day of permitted use,
not to exceed thirty (30) consecutive days. The
total number of days for all the special permits
may not exceed one hundred (100) days in any
calendar year. A special permit shall entitle the
holder to engage in the sale by the glass, by the
bottle or in case lots of alcoholic cider or wine
produced by the permittee under the authority
of a limited winery license. Holders of special
permits may provide tasting samples of wines
in individual portions not to exceed one fluid
ounce. Samples at alcoholic cider, wine and
food expositions may be sold or offered free
of charge. Except as provided herein, limited
wineries utilizing special permits shall be
governed by all applicable provisions of this
act as well as by all applicable regulations or
conditions adopted by the board.
For the purposes of this clause, “alcoholic
cider, wine and food expositions” are defined
as affairs held indoors or outdoors with the
intent of promoting Pennsylvania products by
educating those in attendance of the availability,
nature and quality of Pennsylvania-produced
alcoholic ciders and wines in conjunction with
suitable food displays, demonstrations and sales.
Alcoholic cider, wine and food expositions may
also include activities other than alcoholic cider,
wine and food displays, including arts and crafts,
musical activities, cultural exhibits, agricultural
exhibits and farmers markets.
Limited Winery Information Book 11
(4.1) At the discretion of the board, obtain a farmers
market permit. The permit shall entitle the
holder to participate in more than one farmers
market at any given time and an unlimited
number throughout the year and sell alcoholic
cider or wine produced under the authority
of the underlying limited winery license
by the bottle or in case lots. Samples not to
exceed one fluid once per brand of wine may
be offered free of charge. A farmers market
permit shall be issued upon proper application
and payment of an annual fee of two hundred
fifty dollars ($250). A permit holder may
participate in more than one farmers market
at any given time. Sales by permit holders
shall take place during the standard hours of
operation of the farmers market. Written notice
of the date, times and location the permit is to
be used shall be provided by the permit holder
to the enforcement bureau at least two (2)
weeks prior to the event. Except as provided
in this subsection, limited wineries utilizing
farmers market permits shall be governed
by all applicable provisions of this act as
well as by all applicable regulations adopted
by the board.
(5) Apply for and hold a hotel liquor license, a
restaurant liquor license or a malt and brewed
beverages retail license to sell for consumption
at the restaurant or limited winery on the
licensed winery premises, liquor, wine and malt
or brewed beverages regardless of the place
of manufacture under the same conditions and
regulations as any other hotel liquor license,
restaurant liquor license or malt and brewed
beverages retail license.
12 Limited Winery Information Book
(6) (i) Secure a permit from the board to allow the
holder of a limited winery license to use up
to twenty-five per centum permitted fruit, not
wine, in the current year’s production. Each
permit is valid only for the calendar year in
which it is issued.
(ii) The fee for a permit to import and use
permitted fruit shall be in an amount to
be determined by the board.
(iii) The purpose of this section is to increase
the productivity of limited wineries while
at the same time protecting the integrity
and unique characteristics of wine
produced from fruit primarily grown in
this Commonwealth. Prevailing climatic
conditions have a significant impact on
the character of the fruit. Accordingly,
“permitted fruit” shall mean fruit grown
or juice derived from fruit grown within
three hundred fifty (350) miles of the
winery.
(iv) The department is authorized to
promulgate regulations requiring the
filing of periodic reports by limited
wineries to ensure compliance with the
provisions of this section.
(6.1) Sell food for consumption on or off the
licensed premises and at the limited winery’s
additional board-approved locations and sell
by the glass, at the licensed premises and at the
limited winery’s additional board-approved
locations, only wine and alcoholic ciders that
may otherwise be sold by the bottle.
(6.2) Sell wine- or liquor-scented candles acquired
or produced by the limited winery.
Limited Winery Information Book 13
(6.3) Sell alcoholic cider, wine and wine coolers only
between the hours of nine o’clock antemeridian
and eleven o’clock postmeridian. A limited
winery also may request approval from the
board to extend sales hours in individual
locations at other times during the year or
beyond the limits set forth in this clause. The
request shall be made in writing to the board’s
Office of the Chief Counsel and shall detail
the exact locations where sales hours are
proposed to be extended, the proposed hours
and dates of extended operation and the reason
for the proposed extended hours.
(6.4) Store alcoholic cider, wine and wine coolers
produced by the limited winery at no more
than two (2) board-approved locations other
than the licensed premises and those premises
referenced in clause (3) pertaining to the
five (5) board-approved locations for the
sale of wine, with no bottling or production
requirement at those additional locations
and under such conditions and regulations
as the board may enforce. If two (2) or more
businesses will operate out of the same storage
facility, the limited winery must designate
specific and distinct areas for its storage. The
limited winery’s designated storage area must
be secured and no one other than the licensee
and his employees may be allowed access to
the storage area. No board-approved manager
will be necessary for the storage facility. The
limited winery must fill out an application for
such an additional board-approved storage
location, and such location shall count as one
of the two permitted for each limited winery.
The limited winery is responsible for keeping
14 Limited Winery Information Book
only its own complete records. A limited
winery may be cited for a violation of the
recordkeeping requirements of sections 512
and 513 pertaining to its own records only.
(b) The total production of alcoholic ciders, wine and
wine coolers by a limited winery may not exceed
two hundred thousand (200,000) gallons per year.
(c) As used in this section: “Agricultural commodity”
shall include any of the following: agricultural,
apicultural, horticultural, silvicultural and
viticultural commodities.
“Farmers market” shall include any building, structure
or other place:
(1) owned, leased or otherwise in the possession
of a person, municipal corporation or public or
private organization;
(2) used or intended to be used by two or more
farmers or an association of farmers, who are
certified by the Department of Agriculture of the
Commonwealth to participate in the Farmers’
Market Nutrition Program subject to 7 CFR
Pt. 249 (relating to Senior Farmers’ Market
Nutrition Program (SFMNP)), for the purpose
of selling agricultural commodities produced in
this Commonwealth directly to consumers;
(3) which is physically located within this
Commonwealth; and
(4) which is not open for business more than twelve
hours each day.

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