VASCM: Santa Cruz Mountains Wine Improvement District Approved and Becomes Effective in 2026
Megan Bell
megan at marginswine.com
Sat Nov 8 16:55:47 GMT 2025
Hi all,
Can someone please clarify how this works in regards to a wine club? The
majority of our wine club members are out of state or out of the SCM region
and have their wine shipped to them. I am also wondering about online
webstore sales.
1. Which wine club sales are considered part of the winery's DTC sales
within the WID boundary? Is it only sales from members who pick up their
shipment in person, or all wine club sales for shipments that are going
across the state/country? Or neither?
2. Looking for clarification on this statement: "DTC sales outside the WID
area are not assessed." Does "outside the WID area" refer to the location
of the customer? For example, orders from the online webstore that are
being shipped to an area outside of Santa Cruz County, or ALL online orders
from the webstore, regardless of customer location and whether or not the
customer has selected "pick up at the tasting room" as an option?
Thanks so much,
Megan
On Tue, Nov 4, 2025 at 5:08 PM Jim Schultze <jameskschultze at gmail.com>
wrote:
> Thanks Ed – – that is a good summary. I found this article (link enclosed)
> to be quite relevant. Temecula has had its own WID for four years and it
> has enabled them to take the region to a new level. I would hope that we
> could do the
> same!
>
>
>
> https://finance.yahoo.com/news/temecula-valleys-wine-agricultural-heritage-130000978.html
>
> Best, Jim.
> James K. Schultze
> Proprietor/Winemaker
> Windy Oaks Estate
> (831)724-9563
>
> On Nov 4, 2025, at 3:14 PM, ed at munsvineyard.com wrote:
>
>
>
> SCM WID “Cliff Notes” summary:
>
> 1. The WID assessment replaces SCMWA annual dues to fund the regional
> marketing done by the SCMWA.
> 2. The assessment is 1% of a winery’s DTC sales within the WID
> boundary. DTC sales outside the WID area as well as wholesale sales are
> not assessed. Since the WID funding formula differs from the prior SCMWA
> funding formula, the annual cost will also differ from what SCMWA members
> paid in the past.
> 3. All wineries within the WID boundary are required to pay the WID
> assessment, whether or not they were formerly SCMWA members.
> 4. The SCMWA manages the programs that the WID assessment funds. WID
> wineries approve the programs, like the past when SCMWA members approved
> SCMWA programs.
>
>
>
> Regards,
>
> Ed Muns
>
> Muns Vineyard
>
> (408)515-2663
>
>
>
> *From:* VASCM <vascm-bounces at lists.kkn.net> *On Behalf Of *Ryan Stirm
> *Sent:* Tuesday, 4 November, 2025 14:03
> *To:* Richard Alfaro <rfalfaro at aol.com>
> *Cc:* vascm at lists.kkn.net
> *Subject:* Re: VASCM: Santa Cruz Mountains Wine Improvement District
> Approved and Becomes Effective in 2026
>
>
>
> Hard to see how much "benefit" this will bring the average SCM winery...
> seems more like a tax on the producers added during an already challenging
> time in the wine business.
>
>
>
> On Tue, Nov 4, 2025 at 1:22 PM Richard Alfaro via VASCM <
> vascm at lists.kkn.net> wrote:
>
> Out of state DTC are not part of the WID
>
> Sent from my iPhone
>
>
>
> On Nov 4, 2025, at 1:09 PM, Mary Lindsay <mary at munsvineyard.com> wrote:
>
>
>
> <VASCM_logo_Final.jpg>
>
>
>
>
>
> *About the New Santa Cruz Mountains Wine Improvement District*
>
>
> On Oct. 21 the Santa Cruz County Board of Supervisors voted to approve the
> Santa Cruz Mountains Wine Improvement District (SCMWID), the final step in
> making the WID a reality. More on what this means and details below. The
> SCMWA has been working on the WID for the past year, securing a weighted
> almost 80% of local winery support through petitions. All of the
> jurisdictions included in the WID boundary where wineries are located voted
> to approve: Counties of Santa Clara, Santa Cruz, San Mateo; Cities of
> Santa Cruz, Watsonville, Capitola, Scotts Valley, Saratoga; Towns of
> Portola, Los Gatos, Woodside.
>
> *What does this mean for our wineries and growers?*
>
> - *Wineries within the WID boundaries* will now contribute to regional
> marketing and promotion efforts through an assessment on DTC sales rather
> than SCMWA membership dues.
> - *Wineries outside the WID boundaries* will continue as members of
> the Santa Cruz Mountains Winegrowers Association as they always have, with
> no changes to their participation or benefits.
> - *Growers that do not make wine are not impacted.*
>
>
> The District boundary roughly (but not exactly) follows the AVA boundary,
> and all wineries within the WID boundary will be part of the WID and
> required to pay a 1% assessment on all DTC wine sales (more about this
> below). If this affects you you will receive notification about this
> requirement, schedule and payments, to start in 2026.
>
> All wineries—both inside and outside the district—remain valued members of
> our broader Santa Cruz Mountains wine community. Everyone will continue to
> have opportunities to engage in SCMWA’s marketing programs, events, and
> promotional efforts that elevate awareness of our region’s unique character.
>
>
>
> *More about the Wine Improvement District:*
>
> The Wine Improvement District will provide a consistent, reliable, and
> larger pool of funds dedicated solely to growing the visibility,
> reputation, and sales of wines from our region. While the Association
> (SCMWA) does important work, it is voluntary and funded by annual dues,
> which means budgets fluctuate based on membership participation and
> economic conditions. This limits both the scale and continuity of marketing
> efforts. The WID will ensure that all wineries that benefit from the
> region’s wine identity contribute proportionally. This creates both equity
> (everyone shares the cost) and critical mass (larger, stable funding) to
> support marketing efforts promoting our wine region.
>
> The WID will not replace the SCMWA but will operate alongside it, with the
> same Board of Directors. Funding is accrued with a 1% assessment on all DTC
> wine sales, which wineries can pay themselves or pass through to consumers.
> Wineries will no longer pay dues to the Association (SCMWA). This does not
> effect the VASCM, which will continue with our nominal $50 annual dues.
>
> Assessments paid through the WID are expected to exceed $400,000 this
> first year, starting in 2026. These funds will be used for marketing the
> Santa Cruz Mountains wine region, its wineries, wines and vineyards to
> promote tourism and sales.
>
> The County of Santa Cruz will administer the WID and collection of
> assessments.
>
> Wine Improvement Districts are legal entities allowed by the State of
> California, and several wine regions have implemented them, including
> Temecula, Amador, Santa Barbara and Livermore, raising large funds to
> market their regions. With the current economic challenges facing the wine
> industry (including our local wineries) and in order to remain competitive
> in a changing market, the SCMWA Board decided to pursue the formation of a
> WID as an alternative fund-raising source to its dues-based membership.
>
> Through consistent funding the WID ensures continuity, fairness, and
> stability - preventing outcomes such as the recent dissolution of the
> Monterey County Vintners and Growers Assn. The SCMWID is an investment in
> the continued strength of the Santa Cruz Mountains AVA.
>
> If you think you are part of the new district (selling wine DTC) and have
> questions, please reach out to me and I will see how I can assist. A
> detailed presentation is available upon request.
>
>
>
> Thank you,
>
> - Mary Lindsay
>
>
>
>
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>
>
> --
>
> *Ryan Stirm*
>
>
> STiRM Wine Co.
> 925-330-4422
>
> ryan at stirmwine.com
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--
Megan Bell
Margins Wine
www.marginswine.com
(925) 413-2654
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