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Change in distilling tax legislation.

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Change in distilling tax legislation.

Postby Boomtown » Thu Jun 02, 2016 1:00 pm

Is anyone up to date on this Congressional action?

This is dated May 26,

HR 2520: Distillery Innovation and Excise Tax Reform Act of 2015 Introduced
May 26, 2015 12:17 PM
Large and Small Distillers Unite Behind Bi-partisan Legislation

WASHINGTON D.C. – A new bipartisan bill to cut federal excise taxes on distillers of all sizes has been introduced by Rep. Todd Young (R-IN) and Rep. John Yarmuth (D-KY), the Distilled Spirits Council (DISCUS) and the American Craft Spirits Association (ACSA) announced today.

The bill, HR 2520, the Distillery Innovation and Excise Tax Reform Act of 2015, which is supported by trade associations representing both large and small distillers, would cut the current tax rate of $13.50 per proof gallon to $2.70 per proof gallon on the first 100,000 gallons for all distillers. The bill sets a rate of $9.00 per proof gallon on all spirits above the 100,000 gallon threshold.

Importantly, the two trade groups agreed that these rates should apply to all distillers regardless of size, and to imported spirits as well as domestic products.
“It is significant that the distillers of all sizes are united behind this important hospitality industry legislation,” said Distilled Spirits CEO Peter Cressy. “We thank the sponsors for recognizing the economic impact passage of this bill will have for our industry.”

ACSA President Tom Mooney from House Spirits in Portland, OR, said, “This bill will help create jobs across America for the rapidly growing distilling industry. It will translate into real economic benefits and jobs for hundreds of small distillers and their surrounding communities.”

Ted Huber of Starlight Distillery in Indiana, who is both a DISCUS board member and ACSA vice president, added, “I want to thank Congressmen Young and Yarmuth for championing our distilleries by introducing this bill.”

Distilled spirits products are one of the most highly taxed consumer products in the United States with more than half of the purchase price of a typical bottle of spirits going to taxes and fees.

The Distilled Spirits Council represents large and mid-sized distillers, and nearly 120 small distiller affiliate members. ACSA, representing more than 300 small distillers nationwide, is a not for profit trade association dedicated to protecting and promoting American craft spirits.
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Re: Change in distilling tax legislation.

Postby Pa_bon » Thu Jun 02, 2016 4:05 pm

Would be surprised if congress moved on it. They don't seem to get much done in the bacon wrapped shrimp club.
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Re: Change in distilling tax legislation.

Postby Wooday » Fri Jun 03, 2016 12:45 pm

H.R. 2903 Craft Beverage Modernization and Tax Reform Act of 2015
https://www.govtrack.us/congress/bills/114/hr2903

Reduces Excise tax AND legalizes home distilling.

221 co-sponsors.
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Re: Change in distilling tax legislation.

Postby S-Cackalacky » Fri Jun 03, 2016 4:35 pm

What's the difference in these two bills? If one passes, how is the other affected? I can see the little bit about home distillation legalization getting dumped - simply because it's just too good to be true. Damn, things certainly move slow in Washington.
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Re: Change in distilling tax legislation.

Postby just sayin' » Sat Jun 04, 2016 6:32 am

My fear too, SC!
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Re: Change in distilling tax legislation.

Postby Buddy » Fri Nov 18, 2016 12:23 pm

I spoke with a lady at BH the other day and she said there is a senator in Kentucky :shock: that is sitting on the bill to allow our hobby to become legal federally, I guess they have enough people from both parties to pass it if it gets introduced, and it will either have to be passed this year or start over. The lady I spoke to there also told me that Missouri has a state law for hobby distillation similar to the states that allow cannabis for personal/medical use. Anyone out there from Missouri that can verify that? All youse guys from Kentucky please poke your senators with a sharp stick. :soapbox:
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Re: Change in distilling tax legislation.

Postby dale » Fri Nov 18, 2016 6:23 pm

So Mitch McConnell, senate majority leader, is against home distilling, so it ain't gonna happen any time soon.
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Re: Change in distilling tax legislation.

Postby S-Cackalacky » Fri Nov 25, 2016 9:02 am

dale wrote:So Mitch McConnell, senate majority leader, is against home distilling, so it ain't gonna happen any time soon.

If he's working to block it, I think it would be more a matter of trying to protect the commercial interest in his state from the craft distilling movement. The home distillation clause in the bill is a very minor part of the legislation. With Kentucky being a major whiskey producing state, I'm not sure how happy they would be with passage of this bill. But remember, there's a matching bill in the House and he may not have as much control over that one. I just wish we could see some kind of movement on this one way or the other. It's enough to try the patience of a monk.
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Re: Change in distilling tax legislation.

Postby Buddy » Fri Nov 25, 2016 9:35 am

S-Cackalacky wrote:
dale wrote:So Mitch McConnell, senate majority leader, is against home distilling, so it ain't gonna happen any time soon.

If he's working to block it, I think it would be more a matter of trying to protect the commercial interest in his state from the craft distilling movement. The home distillation clause in the bill is a very minor part of the legislation. With Kentucky being a major whiskey producing state, I'm not sure how happy they would be with passage of this bill. But remember, there's a matching bill in the House and he may not have as much control over that one. I just wish we could see some kind of movement on this one way or the other. It's enough to try the patience of a monk.


Wonder if there is some way to organize a boycott on Kentucky Bourbon until Mr. McConnell has a change of heart. :idea: Of course I'm assuming he has a heart. :wink:
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Re: Change in distilling tax legislation.

Postby Pa_bon » Sat Nov 26, 2016 6:47 pm

Maybe should try it at the state level. Pot is being legalized in many states against federal law with no fight from the fed. There's a ton of money in pot. Prob not in this hobby. Sad!
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Re: Change in distilling tax legislation.

Postby S-Cackalacky » Sun Nov 27, 2016 7:58 am

Even if this gets through on the federal level, the laws already in place at the state level will also need to be changed. At the moment, to the best of my knowledge, Missouri is the only state that doesn't have anti distilling laws on the books. The rest of the states have distilling laws of varying harshness. In some states it's a minor misdemeanor while in others (line mine), it's a felony to even posses a still. Depending on the state you live in, the punishment can be anywhere from a small fine to a few years in prison.

I think the logic behind going with the fed law first was that, if passed, many of the states would fall in line with the new law, while others might take a little more persuasion. That is, it would then be easier to get it done at the state level.
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Re: Change in distilling tax legislation.

Postby Buddy » Sat Feb 11, 2017 5:13 pm

I happened to be checking the TTB website today, and although it is not a change in "legislation" I see the new year brought a change in rules. Per their website
As of January 1, 2017, if you are the proprietor of a brewery, distilled spirits plant, or winery owing not more than $50,000 in excise taxes in the previous year, and you expect to owe not more than $50,000 in excise taxes in the current year on beer, distilled spirits, or wine, you may no longer be required to hold a bond.

In addition, if you owed not more than $1,000 in excise taxes the previous year and expect to owe not more than $1,000 in the current year, you will be eligible to file your excise taxes annually, rather than semi-monthly or quarterly.
The information in this tutorial may not reflect these changes. TTB will update it as soon as possible. In the meantime, please see our Bond and Filing Changes homepage for more details.


Of course there is a lot of wiggle room in
you may no longer be required


I guess the :evil: is in the details.
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Re: Change in distilling tax legislation.

Postby pintoshine » Mon Feb 13, 2017 9:47 pm

https://www.congress.gov/bill/115th-con ... ated-bills
This is the link to the tax reform senate bill. The congressional one is identical. Both have dropped the home distilling section.
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Re: Change in distilling tax legislation.

Postby okie » Tue Feb 14, 2017 11:29 am

If I understand you, that means it will still be illegal to home distill?
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Re: Change in distilling tax legislation.

Postby S-Cackalacky » Wed Feb 15, 2017 7:28 am

okie wrote:If I understand you, that means it will still be illegal to home distill?

That's correct. There are efforts underway to get the home distilling paragraph written back into the new bill(s). Someone (or ones) put the kibosh on that key paragraph (for us) with the writing of the new bill introduced in the new session of congress.

It's back to square one. If you want to help, write your senators and congressman and also contribute some money for the lobbying effort. It's really a shame - I've read that it was only a couple of senators who were responsible for having the home distilling paragraph removed.
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