Craft Spirits July 2021

Page 80

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KEEPING TABS ON TAXES In his latest column for CRAFT SPIRITS magazine, Lew Bryson mentions that even after the passing of the Craft Beverage Modernization and Tax Reform Act—which permanently reduced the federal excise tax for distillers from $13.50 to $2.70 for the first 100,000 proof gallons—the tax rate for craft distillers is still much higher than beer or wine. “Someone should create a graphic showing the disparity that you can all tack up in your sales space,” wrote Bryson. Here is a side-by-side comparison of those tax rates.

$.11

$.51 BEER

First 1.86 million gallons

Over 1.86 million gallons up to 62 million gallons

$2.70

$13.34

$13.50

$.16

DISTILLED SPIRITS First 100,000 proof gallons

Over 100,000 up to 22.23 million proof gallons

Over 22.23 million proof gallons

$.17

$.19

$.07

HARD CIDER First 30,000 gallons

Over 30,000 up to 130,000 gallons

$.17

$.54

WINE* Over 130,000 up to 750,000 gallons

First 30,000 gallons

Over 30,000 up to 130,000 gallons

Over 130,000 up to 750,000 gallons

*16% and under (most non-fortified wines) Source: ttb.gov/tax-audit/tax-and-fee-rates

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C R AF T S PI R I T S MAG .CO M