Beer Law: Nothing Is Certain But Beer And Taxes
Beer Law Update!
According to the industry advocacy group Beer Institute, on average, more than 40 percent of what Americas pay goes toward federal, state and local taxes. You pay excise to consumption to sales taxes, as well as the normal business taxes. That makes taxes the most expensive ingredient. In addition, the U.S. beer industry contributes nearly $253 billion to our economy. Beer supports 1.75 million American jobs.
The Craft Beverage Modernization and Tax Reform Act of 2015 (H.R. 2903/S. 1562) was introduced in the 114th Congress. It is sponsored by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO) and Representatives Erik Paulsen (R-MN) and Ron Kind (D-WI). The provisions of the bill provide fair, equitable and comprehensive reform of the federal excise tax for all brewers and beer importers. The beer law would make access to craft brews a nationwide reality.
What Does The Law Do?
Notably, the Craft Beverage Modernization and Tax Reform Act:
- Reduces the federal excise tax to $3.50 per barrel on the first 60,000 barrels for domestic brewers producing fewer than 2 million barrels annually;
- Reduces the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers; and
- Keeps the excise tax at the current $18 per barrel rate for barrelage over 6 million.In addition to the excise tax adjustments offered in the bill.
Today there are more than 3,300 breweries in the United States. More than 90 percent of all federally-permitted brewers produce fewer than 7,143 barrels annually, meeting the definition of a small brewer set by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Many of those small brewers are brewpubs, which are restaurants with brewing operations designed to sell locally. Research shows that the tax burden borne by beer drinkers is more than 68 percent higher than for the average purchase made in the U.S.
Stay informed about beer law and the craft beer movement. This information is important. Some shrill and uninformed voices want beer to be as restricted as possible. Their goal is a return to prohibition. In addition, they vote! Do your part and support responsible drinkers. In addition, support your local brewers. Dayton is poised to lead this movement. Drink beer and be happy (and support your local economy).