Lompoc Winery Owners Standing Up Against ‘Unconstitutional’ Fee Mandate
Jarrod Zinn
LOMPOC, Calif. (KEYT) – The owners of a small winery in lompoc are pushing back against what they say is an unconstitutional mandate coming from the county.
a year ago, the santa barbara county board of supervisors approved an ordinance creating the “Wine Business Improvement District”, or “Wine BID.”
“This issue has been going on for almost six years,” says Norm Yost, Founder Of Flying Goat Cellars. “It went through different councils, but then finally in 2025, it was approved.”
Under this ordinance, wineries are required to pay a 1% fee of their revenue on sales to consumers, including transactions in tasting rooms, wine clubs, and at events.
“This is not a tax,” says Adam Shelton, senior staff attorney at the Goldwater Institute. “It is a 1% fee. And both the county and the Vintners Association has made it very clear that this fee, if passed on to customers, is actually taxable.”
The Vintners Association is tasked with managing these funds for regional wine industry marketing.
“We’re just noticing across the board, a downturn in the business,” says Yost. “So right now to incur a 1% assessment above our tax on our wines being sold in the tasting room has been just very, very difficult for us to absorb and to, disseminate the information.”
Founder of Flying Goat Cellars in Lompoc Norm Yost says he’s not opposed to partnerships, associations or regional marketing, but he is opposed to the county mandating which organizations to partner with.
“Associations like this are supposed to be voluntary,” says Shelton. “The Vintners Association existed prior to the establishment of the BID, and at that time it was a voluntary association.”
In a letter written to the Santa Barbara County Board Of Supervisors, Adam Shelton, Flying Goat’s attorney at the Goldwater Institute, says compelling an independent company to join a private association violates the constitution.
“If this law does stay in place and is allowed to continue collecting these assessments, this could be used as a format for other industries,” says Yost.
The County of Santa Barbara sent us the following statement:
“The County of Santa Barbara has received correspondence regarding the Santa Barbara County Wine Improvement District, which was formed in February 2025 pursuant to California law. At this time, we are not aware that a lawsuit has been filed, but are reviewing the received correspondence.”
The Santa Barbara Vintners Association sent us their statement as well:
“The Santa Barbara County Wine Improvement District was formed by the County through a public process and approved by the Board of Supervisors, consistent with federal and California law and long-standing benefit assessment frameworks used statewide.”
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